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Silvergate stocks fell significantly by almost 60% on Thursday due to the abrupt departure of trading partners and investors to avoid financial volatility. The fall was the most significant one Silvergate has ever seen.
On Wednesday, Silvergate announced that it was unable to submit its annual report on time to the US Securities and Exchange Commission (SEC).
As a result, three analysts downgraded the share, and one has completely eliminated its price target due to the company's high level of uncertainty.
JPMorgan downgraded Silvergate from This EXODUS poses a significant risk to the bank's main deposit source and its role as a platform for crypto participants to transfer money between them.neutral” to “underweight” after the company announced it was assessing its ability to continue operating as a going concern.
Related Reading: Top 5 Cryptos Expected To Tally Massive Gains As February EndsJPMorgan downgraded Silvergate from “neutral” to “underweight” after the company announced it was assessing its ability to continue operating as a business that is active.
Canaccord Genuity Group lowered the bank's rating to "Hold" whereas Compass Point Research. Silvergate's under a lot of pressure because his shares are going downhill.
FTX Contagion Rattles Silvergate Shares
FTX Infectious Rattles Silvergate Actions.
In addition, several other crypto companies, including the digital galaxy, coinbase, and trusted paxos, have decided to stop accepting or initiating silver GATE payments.
This exodus poses a major risk to the bank's main source of deposits and its role as a platform allowing participants in cryptography to transfer money among themselves.
“In light of recent developments and out of an abundance of caution, COINBASE is no longer accepting or initiating payments to or from Silvergate,” Coinbase said in a statement shared on Twitter. Taking into account recent developments and as a precautionary measure, Coinbase no longer accepts or makes payments to or from Silvergate,' said Coinbase in a Twitter announcement.
"Coinbase will facilitate the cash transactions of institutional customers with our other banking partners."
In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.
— Coinbase (@coinbase) March 2, 2023
Coinbase (@coinbase2 Mar 2023. The Pot On Regulatory Issues
Potty school on regulatory issues.
The SEC has been working on clarifying its stance on the classification of cryptocurrencies as securities. Sec worked to clarify its position on classifying cryptocurrencies as securities.
The agency took action with respect to a number of initial coin issues that it considered to be non-registered securities issues.
The Internal Revenue Service (irs) has also developed guidelines on cryptocurrency taxation.
Crypto total market cap at $987 billion on the daily chart | Chart: TradingView.comNew Rules Proposed
As well as Nationwide Banks Set Ban On Crypto Purchasing.
The proposal has been met with some resistance from the crypto industry, which argues that the rules could stifle innovation and put too much burden on businesses.
-Featured image from Coincu News
