$185 Million in Crypto Liquidations in 45 minutes Amidst Silvergate "Run on the Bank"
Mysterious Ethereum Whale Wallet Sitting on $400 million (4 Minute Read)
Top Crypto Exchanges Ditch Silvergate
The recent market dip of $185 million in 45 minutes has raised questions about the Silvergate Bank situation.
So what's happening with Silvergate?
Rumors are circulating about Silvergate Bank's poor earnings report, which they delayed.
In addition, the market's plummet appears to be linked to Silvergate's stability concerns, as several major crypto exchanges have stopped accepting payments through them.
The crypto-friendly bank suffered a billion-dollar loss in Q4 2022 from FTX, in which they had significant exposure. This loss and the current "bank run" have put Silvergate at risk of bankruptcy, with potential losses that could be even higher.
Ironically, Silvergate's contagion from FTX could trigger more contagion for the entire crypto industry.
Coinbase Global, Galaxy Digital Holdings, Paxos Trust, and other crypto firms have stopped accepting or initiating payments through Silvergate, and others could soon follow their lead.
Stay tuned for more information, as it could be a choppy ride for the foreseeable future.
Mysterious Ethereum Whale Wallet
Have you heard of the mysterious Ethereum whale wallet? While everyone knows about the Bitcoin whale wallet, this one has a different story.
The wallet bought $75,000 worth of ETH during the ICO back in 2014 and has never made a single transaction.
Yet, now it's worth an incredible $400 million and has received $6.5 million in airdrops along the way. Who could it belong to?
No one knows, and we probably never will. Perhaps the owner passed away or lost access to the wallet. It's a mystery that may never be solved.
But let's talk about something exciting happening in the world of Ethereum. ETHDenver, the biggest Ethereum event of the year, has drawn in an incredible 25,000 people so far!
You'd think it was a bull market if you were at the event and never looked at the charts. One of the big announcements is the new ERC-4337 standard that will enable account abstraction.
What is account abstraction, you ask?
Essentially, users can abstract their main keys away from the network, allowing them to implement more advanced security measures.
This new standard is expected to unlock a wide range of user experience improvements on Ethereum and the greater web3 ecosystem as a whole.
Interestingly enough, account abstraction is as old as Ethereum itself, as Vitalik wrote about it almost a decade ago.
So it's exciting to see this feature finally come to fruition, and it could change the game for Ethereum and the entire crypto industry.
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It’s a Security Because I Said So
Gary is at it again with his fear-mongering. He claims that everything in crypto is a security, except Bitcoin. Some speculate that he's been holding a massive bag of Bitcoin for quite some time.
But do Gary's constant warnings really matter in the long run? The SEC is civil, not criminal, and some believe he's only scaring people to collect fines worth millions of dollars.
In reality, what Gary says about crypto being a security is not legally binding because judges get to make the final call. Crypto is a complex area that requires careful consideration, and fear-mongering doesn't help anyone.
It's been a wild week in the crypto world, but what else is new?
If the red candles worth $185 billion still phase you, give it a few years, and you'll be completely numb to them.
Despite the ups and downs, the future of crypto is bright, and we can't wait to see where it takes us.
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