The collapse of crypto-friendly crypto exchange FTX is reportedly causing a mass exodus at Silvergate.
A new study has shown that a majority of respondents are satisfied with the results. report According to The Wall Street Journal’s analysis, the collapse of the FTX ecosystem resulted in more than $8 billion worth of Silvergate withdrawals. This bank is known for its embrace of digital assets.
The bank responded to the outflow by cutting its workforce by 40% and scrapping plans to create a digital asset. It also liquidated $718million in debt on its balance sheet.
The company’s stock price has also tumbled by over 70% over the last three months.
Silvergate was listed on the stock exchange in 2019. It is well-known for its service to crypto firms. They handle their virtual assets, and operate a platform that connects traders with crypto exchanges.
During the time of FTX’s collapse, Silvergate held about $1 billion worth of assets that belonged to FTX and other firms affiliated with it, according to the report.
Silvergate has also been reported to have sold its traditional banking operations and shifted its focus to the crypto industry. Silvergate isn’t structured like other banks and thus was able to survive the massive outflow of funds.
Silvergate said that even though the markets are turbulent, it still believes strongly in cryptocurrencies.
“While Silvergate is taking decisive action to navigate the current environment, its mission has not changed. Silvergate believes in the digital asset industry.”
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