📉 Race to the bottom

Stay in the Know.

• 🏦 Silvergate and SVB Collapse

• 📦 Amazon to deliver NFTs?

• 🧧 ETH upgrade wen? 

Banking is necessary, but banks are not...

Market Update 📊

Where do we start with the market… This week has seen some interesting moves, with us being within touching distance of $24k and then the dreaded drop to $20k that we have seen in the past 24 hours.

In fact, we’ll let you see for yourself.

As you can see, that is a pretty brutal drop from the 7D high of 23.48k that is at the top left of the chart.

So, why did we see such a big drop?

Well, there isn’t a 100% reason for the drop, but there are some narratives that could have led to this happening. Some of these include the Silvergate liquidation, which you’ll be able to read about in this weeks newsletter. There is also the fact that there was a CME gap that was not hit previously at around $20k and also the added FUD of KuCoin being sued. Lastly there was HUGE amounts of crypto assets moved to Coinbase believed to be in the region of $214M by the government from the silk road seizure that first occurred around November 2021 and led into 2022.

Either way, things are not looking great right now and trying to guess what will happen next is not recommended, so as always, please do your own research and be mindful about the current market and economic conditions.

🏦 Silvergate and SVB Collapse

Silvergate Bank, one of the major gateways for cryptocurrencies in the United States, has announced its intention to "voluntarily liquidate" assets and close operations, following inquiries from bank regulators and the Department of Justice.

The announcement has resulted in several major crypto clients suspending their relationship with the bank, while its holding company's stock price plummeted 58% in intraday trading. Signature Bank, another crypto-friendly bank, also saw its stock prices tumble around 5% in after-hours trading.

The bank's closure will affect a "huge number of market markers and exchanges" that relied on the bank to process instant crypto-fiat transactions. The move comes amidst alleged attempts by U.S. authorities to discourage banks from offering services to the crypto industry, leading some crypto businesses to become completely unbanked.

Silvergate Bank was once a shining star in the world of cryptocurrency, known for helping people buy and sell digital coins like Bitcoin. They had over 750 clients who trusted them to be a gateway between the world of crypto and traditional finance. But things got tough as we have seen many times in the last few years, and now the bank is in trouble. In fact, it is the first major bank collapse since October 2020 and it might be the biggest bank collapse since 2009! Even though it wasn't on the "failed bank" list, this news is still a big deal for people who care about the future of money.

Read more about Silvergate's liquidation here 👇

Watch the domino effect take its toll

SVB has prompted a global sell-off in banking stocks after it launched a rescue share sale to plug a near-$2 Bn hole in its finances.

Silicon Valley Bank collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history. California regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation.

The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said.

But 89% of the bank's $175 billion in deposits were uninsured as the end of 2022, according to the FDIC, and their fate remains to be determined.

The impact of this crash will cause a major ripple effect way beyond the tech and start-up sectors, to put things into perspective, SVB holds $288B in customer funds, in comparison to FTX who held $16B, now imagine the sheer magnitude of this backlash...

How could this possibly happen? Here's a breakdown 🧵 that covers things.

What's next? Well, this morning we saw USDC depeg against the dollar 🤯

Read more about Circle's exposure to SVB here:

📦 Amazon to deliver NFTs?

We know it might be hard to keep on reading after realising we're amidst a global banking crisis, but let's finish the story.

NFT fans listen up, Amazon is launching its own NFT marketplace next month! According to reports, the marketplace will offer 15 NFT collections for US-based customers upon launch, with plans to expand worldwide. The best part? Customers could potentially purchase these digital collectibles with their Amazon account using debit or credit cards, so you don't need a crypto wallet to get in on the action.

But wait, there's MORE!

Amazon's NFT marketplace could also potentially offer NFTs linked to physical goods that will be delivered right to your doorstep. This means you can purchase fashion-oriented NFTs linked to clothing such as jeans, trainers, and sweatshirts. The clothing company Nike has already been at the forefront of linking NFTs with their physical products, and Amazon seems to be following in their footsteps.

The Amazon NFT initiative has been in development for months, with the company taking progressive steps towards incorporating more Web3 features into its platforms. In January, Amazon partnered with web3 firm Ava Labs to accelerate the adoption of blockchain technology, and now, the world's largest retailer is launching its own NFT marketplace.

While we don't know the exact name of the marketplace yet, it is rumoured to be called 'Amazon Digital Marketplace' and will launch in late April.

This is certainly exciting news and it could spark MASSIVE public interest into the Web3 space, and while that may not sound completely ideal, adoption is still a key aspect and Amazon could help to build trust in this unbelievably special world, that sadly lacks currently.

Take a look at the article below if you want to know more!

🧧 ETH upgrade wen?

It looks like Ethereum developers are gearing up for a big upgrade to the blockchain, and it's causing some confusion in the crypto world. The upgrade, which was originally referred to as "Shanghai," is now being called "Shapella" by clever developers.

What's the deal with the different names?

Well, it all comes down to the fact that the Ethereum protocol has two layers: the execution layer and the consensus layer. The execution layer is where the Shanghai upgrade will be taking place, while the consensus layer has its own name, "Capella." So, to encompass both layers, developers are combining the names and calling it "Shapella."

If you're not familiar with the two layers of Ethereum, here's a quick rundown: before the last upgrade, known as the Merge, Ethereum had an old proof-of-work blockchain, which was also referred to as the execution layer. When developers introduced the proof-of-stake (PoS) chain, or consensus layer, they initially planned to transition over to just the PoS chain. But it turned out to be too complicated, so they merged the two chains together.

So, there you have it. While it may seem like a small detail, the names of upgrades can have a big impact on how they're perceived in the industry. But with clever developers on the case, we're sure the Shapella upgrade will go smoothly.

Level up your knowledge 🕹️

Here are three super dope threads for you to enjoy:

It seems banks are suffering big time, what will be next?

You can't go wrong with a meme, right? When the market looks bad, memes are our comfort.

And the final dope tweet for you is an insight into crypto and the importance of being involved sooner rather than later.

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Written by Lewis 🕵️

DYOR – authors of All Things Flooz newsletter own cryptocurrencies and stocks.

Stay sharp 🧐

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.