🐝 Silvergate's Crypto Connection Collapses: What Does This Mean for Investors?
Hello, honeybees! Welcome to Web3 Buzz, the buzz-worthy newsletter for all your crypto needs. We're excited to announce that we have 345 new members joining our hive yesterday.
Here's what's creating a buzz in the crypto world:
Silvergate Bank's Crypto Connection in Trouble
Tensor Plans Airdrop for Solana NFT Traders
Meta Plans More Layoffs
Silvergate's Crypto Connection Crippled: Is this the end of the line for the Federal Reserve-backed bank?
So, it looks like Silvergate Capital, a bank’s holding company, is in deep trouble as it's evaluating “its ability to continue as a going concern." The company has also suspended its service, Silvergate Exchange Network, which was used by institutional investors to move money to crypto exchanges. As a result, multiple crypto firms have announced that they are cutting ties with Silvergate. Its stock price has slumped more than 60% over the past week and is down more than 95% over the past year.
This is not good news for the crypto industry as a whole as Silvergate was positioned as a gateway connecting cryptocurrencies and traditional finance. It has been providing banking services to crypto exchanges and firms since 2014. The company was hit hard by the implosion of crypto exchange FTX and the massive withdrawals that followed, recording a 73% decrease in non-interest-bearing deposits between Sept. 30 and Dec. 30 last year as crypto investors left the market.
It's like Silvergate is the person who always brings the chips to the party, but this time, they forgot the dip. Without Silvergate, the crypto industry will have to find a new dip. Silvergate's woes have triggered bearish crypto market sentiment that has seen a drop in total crypto market cap from US$1.13 trillion on March 1 to US$1.06 trillion on March 8, according to data from CoinGecko. However, crypto is a resilient industry, and it will recover. But the question remains, who's bringing the dip next?
Like a Blur: Tensor Plans Massive Airdrop for Solana NFT Traders
Have you heard about Tensor? This Solana NFT marketplace might have been a small contender before, but it's quickly gaining market share by following the playbook of leading Ethereum platform Blur. By targeting "pro" traders and providing "loyalty" rewards, Tensor is capturing the attention of the crypto community.
Just like how Blur skyrocketed to the top of the Ethereum NFT trading volume by flipping NFTs en masse to maximize their rewards, Tensor is offering its users 25x-50x more rewards if they trade on its platform. It's like getting a bigger slice of the pie for doing what you love.
And the numbers don't lie - according to analytics platform Dune, Tensor's Solana NFT trading volume surged to a new single-day high, reaching $486,000 worth based on the value of Solana by the end of the day. This is a notable spike, given that Tensor has only accounted for about 6% of Solana NFT trading volume over the past 30 days.
The airdrop is just the start of Tensor's plans. With a seed round of $3 million led by VC firm Placeholder and participation from Solana co-founders and other notable backers, Tensor is gearing up for a bigger second season airdrop that will reward trading activity on its own platform.
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⚡️ Daily Sizzle: Today's Must-Know Topics
Looks like Meta is gonna let go of a lot more employees this week, not good for them. (Link)
Uh oh, Stripe's gotta pay a big $3.5B tax bill because their employees' shares are expiring. (Link)
Elon Musk got told off by the EU to hire more people to keep his tweets in check. (Link)
Hey, did you hear that Pennsylvania's got a new 100% nuclear-powered Bitcoin mining place? Sounds pretty cool. (Link)
Ethereum's Shanghai hard fork got delayed by a couple of weeks, it was supposed to happen in March but now it's gonna be in April instead. (Link)
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