🐝 Silvergate Bank to shut down operations!

Mar 10, 2023

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Here's what we have for you today:

Crypto Bank Shuts Down Amid Turmoil
Vitalik Buterin NFTs Celebrate Web3 Funding
NY Attorney General Sues KuCoin Over Ether

Silvergate Bank to shut down operations.

Buckle up as we have some fresh updates in the world of crypto.

Silvergate Bank's recent announcement has sent shockwaves throughout the crypto community, and there are a lot of mixed opinions.

But, what does it mean?

Silvergate Bank revealed it's facing inquiries from bank regulators and the Department of Justice, and its ability to be a "going concern" over the next 12 months may be in doubt.
As a result, major crypto clients announced they would suspend their relationship with the bank, and its holding company's stock price fell 58%.
Silvergate Bank will voluntarily liquidate its assets and shut down its operations.
Bitcoin trading volumes dropped 35% in the past 24 hours following Silvergate's announcement.

It's no secret that Silvergate Bank has been providing banking services to crypto companies for a while now, and the fact that it's shutting down its operations has raised some serious concerns.

While some believe that this could be a major setback for the crypto industry, others see it as an opportunity for growth and development.

After all, with every challenge comes an opportunity to innovate and come up with new solutions.

The latest NFT collection that's creating a buzz in the crypto world?

It's called "The Quadratic Funding Collection," and it celebrates the contributions of Ethereum creator Vitalik Buterin to a popular Web3 funding model. Here are some key takeaways about this NFT collection:

The collection was created by Metalabel in collaboration with Web3 funding platform Gitcoin.
Each NFT in the collection looks like an album cover and includes a digital version of the 2018 whitepaper "Liberal Radicalism: A Flexible Design for Philanthropic Matching Funds" signed by Buterin and his co-authors.
The project commemorates the creation of the concept of quadratic funding, which seeks to maximize contributions to projects by providing matching funds to individual donations.
Gitcoin, a platform that funds open-source Web3 tools and projects using quadratic funding, has awarded some $70 million across the Ethereum ecosystem to date.
The NFT project was Metalabel's first "Quality Drop" project and raised over $781,000 for public goods projects.

In short, this NFT collection is a unique way to commemorate an important contribution to Web3 funding, while also raising funds for public goods projects. It's a great example of how NFTs can be used for more than just collecting digital art.

KuCoin Takes a Hit: NY Attorney General Claims Ether is a Security in Lawsuit

On Thursday, New York State Attorney General Letitia James filed a lawsuit against KuCoin, a Seychelles-based cryptocurrency exchange, alleging that it is violating securities laws by offering tokens, including Ether, without registering with the attorney general's office. Here's what it means:

This lawsuit marks the first time a regulator has claimed in court that Ether is a security.
The suit argues that Ether is considered a security under the Martin Act, an anti-fraud law, because its value is dependent on the efforts of others.
The NYAG's office believes that ETH, LUNA, and UST, all traded on KuCoin, are securities that should have been registered before being sold.
KuCoin did not respond to subpoenas filed by the NYAG's office.
With this lawsuit, Attorney General James is seeking a court order to stop KuCoin from operating in New York and to implement geo-blocking based on IP addresses and GPS locations.

This lawsuit could have significant implications for the cryptocurrency market and how regulators view cryptocurrencies as securities. The broader crypto market saw a dip in price, with Ether down 8% after the lawsuit was revealed. It remains to be seen how this lawsuit will play out in court and what impact it will have on the industry.

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