{"id":3647,"date":"2023-03-06T20:00:58","date_gmt":"2023-03-06T14:30:58","guid":{"rendered":"https:\/\/www.coinfantasy.io\/blog\/?p=3647"},"modified":"2024-08-28T17:17:39","modified_gmt":"2024-08-28T11:47:39","slug":"viability-is-the-core-for-crypto-banks","status":"publish","type":"post","link":"https:\/\/www.coinfantasy.io\/blog\/viability-is-the-core-for-crypto-banks\/","title":{"rendered":"Viability Is The Core For Crypto Banks, Silvergate Proved It Again\u00a0"},"content":{"rendered":"\n

With the persistent problems faced by the digital currency<\/a> industry, San Diego’s crypto-friendly Silvergate Bank has revealed that its financial health has deteriorated, raising concerns about its capacity to continue operating.<\/p>\n\n\n\n

In January and February, Silvergate disclosed that it had incurred a potential loss from the selling of debt securities that had supported its deposits related to cryptocurrencies. It is a company that specializes in offering deposit accounts, fund transfers, a real-time payments network, and other banking infrastructure to the cryptocurrency industry, <\/p>\n\n\n\n

In light of these facts, Silvergate declared that it is assessing “the impact that these subsequent events have on its ability to stay in business for the twelve months after publishing its financial accounts. In view of the present commercial and regulatory issues it is facing, the company is in the process of reevaluating its companies and strategies.<\/p>\n\n\n\n

As it tries to respond to queries from regulatory and other “inquiries and investigations,” Silvergate stated that it would likely not be able to submit its annual report to the SEC by the deadline of March 16. <\/p>\n\n\n\n

Silvergate Drops: What Went Wrong?<\/strong><\/h2>\n\n\n\n

Thursday’s premarket trading saw a 29% decline<\/a> in Silvergate Capital Corp. shares after the lender, announced it was delaying its annual report and stated it was assessing its ability to continue as a going concern.<\/p>\n\n\n\n

In response to the bankruptcy of cryptocurrency exchange FTX<\/a>, investors rushed to withdraw deposits, causing Silvergate to report a $1 billion loss for the fourth quarter. The company’s problems highlight the brittleness of investor confidence in digital assets.<\/p>\n\n\n\n

The filing is presented here. The issue is:<\/p>\n\n\n\n