Shockwaves In Crypto Industry As Silvergate Bank Goes Under, Binance, Coinbase, And OKX Claim To Stand Strong

A day after Silvergate Capital SI revealed its decision to close down the bank and liquidate its assets, causing concerns of a contagion to loom over the FTX FTT/USD catastrophe, several cryptocurrency companies have sought to reassure the community of their financial stability.

Binance BNB/USD CEO Changpeng Zhao tweeted to confirm that the world's largest cryptocurrency exchange had not suffered any asset losses at Silvergate and that all funds at the exchange were safe.

Other firms followed suit, with Coinbase COIN denying having any client or corporate cash at the bank and OKX's President, Hong Fang, stating that both corporate and customer funds were secure.

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However, Fang predicts that the Silvergate debacle could slow down the adoption of cryptocurrencies. According to the Crypto Council for Innovation, the downfall of Silvergate can be linked to regulatory barriers, which discourage banks from providing deposit accounts to cryptocurrency firms, exacerbating concentration risks in the sector.

Despite the reassurances from major firms, fear still persists within the industry, and the stock price of Silvergate Capital Corp declined by about 38% to $3.06 in trade on Thursday.

Meanwhile, major cryptocurrencies like Bitcoin BTC/USD, Ether ETH/USD, Dogecoin, DOGE/USD and Cardano ADA/USD are all trading down between 0.5% and 1% on Thursday morning.

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