According to an ex-Messari executive and analyst in the space, there are three companies that, "If something catastrophic happened to them today, would cause a tsunami in crypto markets."
Tether: reserve currency of crypto - Genesis: primary venue of liquidity for crypto loans.
Due to the nascency of crypto and blockchain, many Wall Street banks are hesitant to serve companies, especially if they actively deal with Bitcoin.
The systemic risk in Silvergate's theoretical collapse is that a majority of the most recognizable crypto firms may be unable to operate with banking services, especially when it may be hard to get services through other banks.
"The JPM announcement that they will provide banking services to Coinbase and Gemini isrecognition that the future will include crypto currencies, digital assets, and blockchain based systems."
Funnily enough, it's somewhat of the same for the crypto market.
USDT's importance is derived from the crypto asset being pegged to the U.S. dollar by reserves.
No one really knows what would happen if Tether, but USDT disappearing would mean the loss of the most important asset in crypto.
By offering crypto loans, the company serves market-makers, speculators/traders, and firms that need money to expand or need capital for other uses.
Its theoretical collapse would decrease the availability of capital to the aforementioned groups of firms.
If any of these 3 crypto firms collapse, a "tsunami" will ensue: analyst
gepubliceerd op Jun 30, 2020
by Cryptoslate | gepubliceerd op Coinage
Here's how Kyber Network's "Katalyst" upgrade has boosted its fundamental strength
Popular DeFi protocol Kyber Network recently released their highly anticipated Katalyst upgrade, allowing KNC token holders to engage with the network on a deeper level.
Islanders Demand Return of '.IO' Domain From Colonizers
The popular '.io' domain name has become part of a complaint against the United Kingdom for alleged human rights violations tied to its continuing administration of territories in the Indian Ocean.
New York Court Rejects Bitfinex Appeal Over $850M in Lost Funds
New York's Supreme Court has rejected Bitfinex and Tether's appeal in the ongoing dispute between the firms and the NY Attorney General over $850 million in lost funds.
Community Asked for Input to Guide Australia's Blockchain Roadmap
The Australian Government has reached out to the blockchain community to help identify opportunities for blockchain adoption in the supply chain and credentialing sectors.