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- Silvergate has verified a least exposure to a digital asset lender BlockFi.
- Silvergate has been a topic of many FUD (fear, uncertainty, and doubt) or wrong and confusing statements
Relationship between Silvergate and BlockFi
Silvergate, a bank holding firm and the parent company of Silvergate Bank has verified a least exposure to a digital asset lender BlockFi.
On November 28, Silvergate publicized a business update quoting that the deposit relationship of the company with BlockFi is restricted to less than $20 million of its entire deposits from all digital asset customers.” Those deposits are estimated $13.2 billion in quarter three as per the company’s revenue report.
It also mentioned that BlockFi wasn’t a custodian for its Bitcoin-collateralized leverage loans and the company has no capital in BlockFi.
The chief executive officer of Silvergate, Alan Lane stated that “as the digital asset world carries on to change, I want to repeat that Silvergate’s platform was motive-created to control stress and instability.”
Silvergate has been a topic of many FUD (fear, uncertainty, and doubt) or wrong and confusing statements,” in its words.
On November 29, technical expert and Swiss investor Walter Bloomberg stated to his 622K Twitter followers “Silvergate Capital stated to have lent funds to BlockFi,” but was not successful to give any proof. Others have been included in the FUD fest with many Tweets in the last week, although, many of them were shorting particulars.
BlockFi had also become the newest victim of the crypto exchange FTX transmission to file for Chapter 11 bankruptcy.
As per the filing, BlockFi has over 100,000 creditors, assets between $1 billion and $10 billion, and identical liabilities. The newest evident crypto collapse seems to have powered this newest round of FUD, which Silvergate has witnessed fit to disapprove.
In the beginning of this month, the WSJ shoot an article on Silvergate purporting that the firm was struggling the transmission fears. The crypto bank has witnessed its stock prices collapse this year but that has been the matter for most openly registered crypto firms.
SI values fell 11.1% on the day to end at $24.45 in after-hours trading as per the Market Watch. Silvergate stock has slipped 83.6% from the start of 2022. Also, the chief executive officer of Block.one, Brendan Blumer has bought a stake in Silvergate Captial.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
