• Silvergate’s financial stability was called into question last week, as investors raised concerns and its 10-K filing was delayed.
• Binance remained focused on growth amid the FUD, while Ethereum investors received news of a delay to the Shanghai upgrade.
• Crypto entities have since severed ties with Silvergate due to the uncertainty surrounding their financial security.
Last week, the crypto scene was proliferated with apprehensions as investors raised concerns regarding Silvergate’s financial stability amid signs of impending collapse. On Mar. 1, the California-based bank revealed in a filing that it would have to delay its 10-K filing with the U.S. Securities and Exchange Commission (SEC) for the fiscal year ending Dec. 31, 2022. Following this announcement, Silvergate’s shares plummeted by 47%. The company also drew attention to ongoing regulatory investigations and actions, noting that it was evaluating their potential impact. Despite assurances from Alan Lane, CEO of Silvergate, investors sought to hedge against unforeseen circumstances and triggered a bank run which resulted in $8.1b being withdrawn in January. Last month saw another decline following reports of a probe into Silvergate from the Department of Justice (DoJ).
Binance Pursues Growth
Amidst all this FUD, Binance continued to pursue growth strategies by introducing new products such as margin trading and futures contracts. Furthermore, they recently acquired CoinMarketCap — one of the industry’s leading data aggregators — for an estimated $400 million USDT equivalent in cash plus equity incentives for its employees and founders alike. This acquisition is intended to further expand Binance’s presence in cryptocurrency markets around the world while helping them gain access to invaluable market data resources provided by CoinMarketCap’s extensive network of exchanges and providers across numerous platforms and geographies worldwide..
Ethereum Shanghai Update Delay
Ethereum investors were dealt yet another blow last week when news broke out that their much anticipated Shanghai Upgrade had been delayed until April 1st 2023 at least — two weeks later than originally planned for March 15th 2023 . This delay was attributed largely to delays in testing and development processes related to implementing changes within Ethereum’s existing codebase necessary for successful completion of its upcoming transition from Proof-of-Work (PoW) consensus algorithm towards Proof-of-Stake (PoS). The delay has already caused some disruption amongst Etheruem miners who must now adjust their mining rigs accordingly before transitioning over once more onto PoS mining algorithms post April 1st 2023 when Ethereum 2 is expected launch officially according to current schedules..
Crypto Entities Sever Ties With SilverGate
Crypto entities have since begun severing ties with SilverGate due to mounting uncertainty surrounding their financial security given recent circumstances outlined above which likely influenced investor sentiment concerning whether or not these entities felt safe enough engaging business relations with an institution whose future remains uncertain at best right now given all these events transpiring around them during recent weeks or months past..
Overall it remains uncertain what exactly will come next for both silverGate and Ethereum’s respective updates despite both having seen significant turbulence over recent weeks; however we can be certain that cryptocurrency continues remain incredibly volatile sector prone short term shocks like those detailed here today – although those same traits may also prove lucrative if managed properly so longterm investments remain just as viable option today as ever before too!