The Unchained Web Daily Crypto News #16

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42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Silicon Valley Bank CEO Cashed Out Shares and Paid Bonuses Just Before Collapse

Silicon Valley Bank's CEO, Greg Becker, sold $2.27 million worth of bank stocks before its collapse, while top executives sold shares worth $4.5 million. The bank also paid annual bonuses to eligible employees on the same day the FDIC took over the bank, though it appears to be a coincidence. The government agency has offered to retain some bank staff for 45 days to assist with the transition. Several stakeholders are calling for a government bailout, while the crypto community has criticized regulators' and policymakers' hypocrisy. More information can be found here . This is very similar to what happened with Celsius CEO Alex Mashinsky who cashed out 1 million USD while his company Celsius had stopped withdrawals back in 2022. More information on that story can be found here .

Binance to convert Industry Recovery Fund from Stablecoins to Decentralised Currencies like BTC, ETH and BNB

Changpeng Zhao CEO of Binance announced on Twitter that Binance will be converting the remaining 1 Billion USD of Industry Recovery funds created to allow Crypto companies and start-ups to dip into in case of financial problems and to survive from stablecoins pegged to the USD to decentralised currencies such as Bitcoin, Binance Coin and Ether. There is no more information as I am the one to bring this news to you! :D

FDIC bidding for Silicon Valley Bank is in progress

The US Federal Deposit Insurance Corporation (FDIC) has begun an auction process for Silicon Valley Bank (SVB), seeking a buyer for the California bank over the weekend. However, a final decision has not yet been made and a deal may not be reached. U.S. Treasury Secretary Janet Yellen said that regulators are working to address the SVB collapse and protect investors but are not considering a major bailout. Meanwhile, affected companies are being offered aggressive lending terms under receivership certificates as collateral, and some clients have received offers between 55 cents and 75 cents per dollar for their unsecured deposits. SVB was shut down by California's financial watchdog on March 10 after announcing a significant sale of assets and stocks to raise $2.25bn capital. More information here .

Yellen Says No to SVB Bailout, but Says Government Is Working to Help Depositors

US Treasury Secretary Janet Yellen stated that the federal government would not provide a bailout for Silicon Valley Bank (SVB) after its collapse, but they are working to help affected depositors. Yellen reassured the public that the American banking system is safe and well capitalized, and regulators are focused on meeting the needs of depositors. Around 85% of SVB depositors held funds in accounts that were not FDIC-insured, which could mean that those funds may be irretrievable. SVB collapsed after a bank run, which happened after SVB Financial Group announced its intentions to sell $2.24 billion in new shares, leading high-profile venture capitalists to pull their money out of the bank. The Federal Deposit Insurance Corporation (FDIC) seized SVB on March 10. More information can be found here .

UK regulators moving ‘at pace’ to deliver plan for tech firms hurt by SVB collapse

The UK government is working on an emergency plan to rescue tech startups affected by the collapse of Silicon Valley Bank. The plan will include providing a cash lifeline to affected businesses to meet their operational liquidity and cash-flow needs. The Bank of England has already halted operations of SVB branches in the UK, and a bank insolvency procedure would mean that "eligible depositors" would be paid out by the Financial Services Compensation Scheme up to the "protected limit." Over 200 founders and CEOs of UK tech companies signed a letter on March 11 calling for government intervention. More information can be found here .

Circle to ‘Cover Any Shortfall’ in USDC Reserves, Sparking Stablecoin Rally

Circle has pledged to "cover any shortfall" in the cash reserves of its stablecoin USDC after Silicon Valley Bank's collapse, which led to the seizure of $3.3bn of USDC's cash backing held by Circle. The value of the stablecoin fell to as low as $0.88 before rebounding to $0.97 after the announcement. Circle had attempted to move its assets out of the bank before the collapse, but a transaction may only settle on Monday when US banks resume normal operations. At the time of writing this the price of USDC is 0.98 USD almost 0.99 USD. More information can be found here .

DAI Depegs to Lifetime Lows as Stablecoin Rout Plagues Crypto

The collapse of Silicon Valley Bank and Silvergate has affected the cryptocurrency market, causing algorithmic stablecoins DAI and Tron’s USDD to fall below their pegs. DAI hit an all-time low of $0.88 and is currently trading at $0.90. Traders are speculating that Circle, which issues USDC and uses it to back DAI, has greater exposure to Silicon Valley Bank than it has disclosed. Over the last 24 hours, $563 million of DAI was burnt, and the stablecoin now has a market cap of $4.9 billion. Tether remains pegged at $1. DAI used to be backed only by Ether but now it is a mix of Ether and USDC hence the depeg. At the time of writing this, which comes after Circle's announcement that "any shortfall will be covered" DAI rebounded to trade at 0.98 USD almost at 0.99 USD. More information can be found here .

Silicon Valley Bank failure could trigger run on US regional banks

Former Bridgewater executive and CEO of investment firm Unlimited, Bob Elliot, has warned that decisions made by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) regarding Silicon Valley Bank (SVB) could lead to a bank run that could put trillions of dollars at risk across US regional banks. Elliot said nearly a third of deposits in the US are held in small banks, and around 50% are uninsured, which could put "thousands of small banks" at risk if the tech bank fails. A Bloomberg report has said the FDIC and the Fed are discussing creating a fund to backstop more deposits at troubled banks in response to the SVB collapse. More information here .

South Korea launches ‘Metaverse Fund’ to expedite domestic initiatives

The South Korean government has invested $18.1 million in a fund dedicated to driving metaverse initiatives, citing the rising interest of major tech companies in the metaverse as a reason for investing. The fund, created with more than $30.2 million, will support mergers and acquisitions of various firms in the metaverse ecosystem and aims to help domestic metaverse-related companies compete with global players. South Korea also launched a digital replica of the city in the metaverse in January, and the government intends to actively support the domestic metaverse industry. More information can be found here .

Over 100 VCs, investors voice solidarity with Silicon Valley Bank

Venture capitalists and investors have joined together to support Silicon Valley Bank (SVB) as the 40-year-old bank winds down operations, fearing the impact on tech companies. Around 125 investors, including Sequoia Capital and General Catalyst, signed a statement supporting SVB to limit the fallout of the bank’s collapse. They suggested that they would encourage their portfolio companies to resume their banking relationships with SVB, should it be purchased and capitalized appropriately. Meanwhile, startup incubator Y Combinator has posted a petition demanding depositors be made whole and for regulation to prevent a catastrophe, which has attracted signatures from around 2,800 founders and 180,000 employees. More information can be found here .

Do Kwon had the right idea, banks are risk to fiat-backed stablecoins

Binance CEO Changpeng Zhao has suggested that traditional banks are a risk to stablecoins that are pegged 1:1 with fiat currencies. CZ's comments came after Circle disclosed that Silicon Valley Bank did not process its $3.3bn USDC withdrawal request, which destabilised the U.S. dollar-backed stablecoin's prices. CZ responded by highlighting the defunct algorithmic stablecoin launched by Do Kwon and suggested that adding crypto to the equation would mitigate risks posed by fiat currencies. A community member pitched the idea of a crypto-backed stablecoin, which CZ agreed with but said that Kwon's stablecoin failed on execution. More information can be found here .

Failed tech bank SVB held over $5B for prominent crypto VCs

Silicon Valley Bank (SVB), a significant financial lender that recently collapsed, at one point held over $5 billion worth of assets from prominent blockchain venture capitalists, including Andreessen Horowitz, Paradigm, and Pantera Capital. However, it is unclear how much of these assets were used in crypto investments. The collapse was reportedly caused by a failed leveraged bet on U.S. treasury bonds, leading to $1.8 billion in losses on its $21 billion portfolio. Circle, the issuer of the USD Coin (USDC) stablecoin, currently has $3.3 billion worth of deposits stuck in SVB. More information can be found here .

Silicon Valley Bank’s UK branch shut down by Bank of England

The Bank of England (BoE) has stopped the operations of Silicon Valley Bank’s UK branch due to the firm having a “limited presence” in the UK and no “critical functions” supporting the financial system. The BoE has applied to the court to place SVB UK into a “Bank Insolvency Procedure.” BoE stated that a bank insolvency procedure would mean that “eligible depositors” are paid out by the Financial Services Compensation Scheme up to the “protected limit” of ￡85,000 (approximately $102,288) or up to ￡170,000 (approximately $204,577) for joint accounts, as “quickly” as possible. Several UK venture capitalists (VCs), including Index Ventures and Atomico, have issued a joint statement endorsing SVB UK. The Coalition for a Digital Economy, a UK nonprofit that campaigns for policies to support digital startups, stated that a "large number" of startups and investors have "significant exposure" to SVB UK. More information on this can be found here .

Justin Sun Wants to Help Build Banking Infrastructure That Bridges Gap to Crypto

TRON network founder Justin Sun has offered to financially support anyone building a reliable bank that can cater to the needs of the crypto industry following the recent collapse of Silicon Valley Bank, which showed the potential harm caused to many in the industry. Sun is willing to collaborate with anyone building a robust banking infrastructure that bridges traditional finance and crypto, and this institution would be pivotal in enabling wider crypto adoption. Meanwhile, Binance CEO Changpeng Zhao speculated that the recent collapse of crypto-friendly banks might be a coordinated effort from the authorities, and several crypto stakeholders have argued that banks threaten the crypto industry. More information can be found here .

Crypto-Friendly Signature Bank Shut Down by State Regulators

New York-based Signature Bank, which has crypto clients, was shut down by state regulators, becoming the third bank to collapse in under a week. The Federal Reserve announced that the Federal Depository Insurance Corporation had taken receivership of the bank to protect depositors. The joint statement from the Federal Reserve, FDIC, and US Treasury Department said that all depositors who used Signature would be made whole, and no losses would be borne by taxpayers. Signature Bank had reduced its exposure to the crypto sector a few months ago. More information can be found here .

US authorities preparing ‘material action’ to curb SVB contagion

US authorities are reportedly taking "material action" over the weekend to limit the impact of the Silicon Valley Bank's abrupt collapse on March 10, with a focus on venture capital firms and regional banks. The Federal Deposit Insurance Corporation (FDIC) has reportedly begun an auction for the bank. The bank's collapse could affect regional banks across the US and put trillions of dollars at risk of a bank run. US Treasury Secretary Janet Yellen is working with regulators to address the collapse and protect investors but is reportedly not considering a major bailout. More information can be found here .

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1qwhe4nnq7jlmmpv585rnegvt2pm566dr9hryamc

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Brought to you by?Alexandros Ntolgkov .