Earlier this week, cryptocurrency bank Silvergate announced that its exposure to FTX was limited to its deposits. The U.S. bank, which services the majority of the crypto industry in the country, said that it had no loans or investments in FTX.
The bank’s statements managed to soothe the market, with its stock posting a slight recovery after losing almost 50% of its value in the past month.
However, Silvergate is not out of the woods yet. The bank acts as a foundation of the crypto market in the U.S. and is deeply intertwined with the global industry. While FTX’s bankruptcy proceedings might have an insignificant effect on its balance sheet now, the broader market downturn is causing its foundation to crack.
(By Andjela Radmilac)