The crypto industry was still recovering from Wednesday’s voluntary liquidation of its preferred bank, Silvergate, when the next domino fell. On Thursday, startups and venture capitalists began to flee in droves from Silicon Valley Bank as its share price plummeted. By Friday, the Federal Deposit Insurance Corporation had placed SVB into receivership, marking the bank’s official failure.
Amid Silvergate’s descent, many crypto companies had moved their funds to Signature Bank, but even it seemed shaky on Friday as its shares decreased over 20% and trading was halted. Even as many onlookers worried about Silicon Valley Bank’s potential contagion hitting the crypto industry, financial experts said it was unlikely.
