Weekend Recommended Reading: An overview of the reasons for the thunderstorm in Silicon Valley Bank and its impact on the encryption market; the ETHDenver conference is over

23-03-12 17:59
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The bank with the strongest influence, but as the "standard" bank for corporate deposits in the Silicon Valley venture capital circle, if this matter is not handled properly, it will have an immeasurable impact, and it will also affect other banks. Brings a run on risk. So how does the closure of Silicon Valley Bank affect the encryption market? This week's recommended article may have the answer.


Those wonderful articles will not be forgotten by the passage of time. For the convenience of readers to review and collect high-quality content, track the latest developments of projects, understand market conditions, and study and discuss. Rhythm BlockBeats will regularly summarize high-quality content for readers. If you have any suggestions and opinions, contributions and viewpoints, please contact us through the information at the end of this article.


A Simple But Serious Review Let's take a look at the whole incident of Silicon Valley Bank (SVB)"


The progress of this incident depends on many factors, such as SVB Will there be a more serious run, or even bankruptcy? In the next few days, we can observe the evolution of the crisis from at least two levels. One is whether the inter-bank market and the repurchase market will worry about the overall financial situation of small and medium-sized banks? Will there be local tensions in liquidity? Watch to see if the EFFR and SOFR 99% levels see a major increase in the coming days. The other is to observe how the market will view the risks of loans/assets related to technology companies. For example, will banks with a relatively large exposure to technology companies face more serious runs? This article reviews the entire incident.


《USDC will enter a death spiral "


In 1 day, the ripple effect of SVB came to crypto market. This morning, due to some deposits in SVB, Circle, the USDC stablecoin issuer, suddenly faced a severe run, and USDC continued to de-anchor. At the same time, centralized trading platforms such as Binance and Coinbase announced the closure of some USDC exchange services. As of writing, the price of USDC has de-anchored to around $0.933, and more than 2.7 billion USDC have been destroyed in the past 24 hours. Facing panic and runs, will USDC enter a death spiral?


"Circle's Response to USDC Unanchoring (Full Text): Using External Capital to Make up for Reserve Shortages When Necessary"


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The impact of the Silicon Valley Bank thunderstorm on the cryptocurrency industry continues. Currently, the deepest and widest impact is undoubtedly the world’s second largest stablecoin USDC. Banks have $3.3 billion in risk exposure, and after seeing all kinds of thunderstorms in 2022, the frightened cryptocurrency industry has already seriously lacked confidence. Redemption and selling caused USDC to seriously destabilize in a short period of time. The industry's most compliant $1 stablecoin was even worth less than 90 cents on March 11.


In response, Circle issued a fact sheet and response, and most importantly, Circle stated that if Silicon Valley Bank’s $3.3 billion in reserves cannot be 100% returned, and Circle will use company resources, which do not rule out involving the use of outside capital, to make up any shortfall. It also injected some confidence into the industry.


What the collapse of Silicon Valley Bank means for the crypto industry


2023 3 On March 10, the Department of Financial Protection and Innovation, the California regulatory agency, urgently announced the closure of Silicon Valley Bank (Silicon Valley Bank: SVB) and entrusted the Federal Deposit Insurance Corporation (FDIC) to take over. An FDIC-insured institution to collapse in 2023, the bank also made history: becoming the first bank to be liquidated with just a sell rating.


This crisis not only affects the banking industry, but also affects the global encryption market capitalization and the price trend of digital assets , the market could head lower and retest key support, delaying the crypto bull run that many analysts are predicting. The crypto industry was not directly related to SBV’s demise, but there are concerns that the bank’s collapse will affect digital asset players — especially given the number of venture capital firms using SBV for crypto investments. The collapse of Silicon Valley Bank, the most important startup bank in the United States, would mean tough times for startups, including early-stage crypto companies.


"Misjudging the pace of Fed rate hikes, Silvergate and Silicon Valley banks are in deep liquidity crisis"


Small and medium banks in the United States Successive thunderstorms! On March 8, Silvergate Bank, a well-known cryptocurrency-friendly bank, announced its liquidation, returning all deposits to customers. On March 10, Silicon Valley Bank, which specializes in providing financial services to Silicon Valley technology companies, sold US$21 billion of marketable securities and suffered a loss of US$1.8 billion. It was suspected of liquidity problems, and its stock price plummeted more than 60% on Thursday. %, the market value evaporated 9.4 billion US dollars in one day. What's more frightening is that Silicon Valley Bank may be the first domino to cause the crisis, which will not only affect other American banks, but may also hit Silicon Valley technology startups. What happened? Today, we will tell a story about how a bank failed.


"After the Silvergate thunderstorm, what other encrypted banks? "


With the thunder of Silvergate, many encryption companies need to find a way out, and venture capitalists are also working hard Recommend crypto-accepting banks like Silicon Valley Bank, pairing crypto companies with new banks, but as traditional finance becomes more concerned about crypto, there are fewer and fewer banks to choose from. The Information published an article on "Crypto-friendly banks after Silvergate", which is compiled in this article.


"Crisis and Opportunity Coexist, How Much USDC Are "Buying the Bottoms" by Institutions and Big Investors? "


Affected by the bankruptcy of Silicon Valley Bank, the US dollar stablecoin USDC began to withdraw this weekend Anchored and briefly dropped to a low of $0.87 (recovered above $0.96 early this morning). In the process, some people choose to sell in panic, while others buy at the bottom. Let's analyze the data on the chain and see how institutional investors deal with the unanchoring of USDC during this "USDC crisis".


Deconstructing the Silvergate Crisis: Why Did a Crypto Bank With Thousands of Top Clients Fail? "


Last week, Silvergate, the most important bank in the crypto industry, closed its trading Network SEN, which has been used by large investors, corporations and stablecoin issuers to move billions of funds in and out of the crypto market 24/7. The closure of the SEN appears to have had a profound impact on the liquidity of the crypto market, while the bankruptcy of Silvergate also increases the risk of regulators accelerating their crackdown on cryptocurrencies.


In this article, we'll start with Silvergate's origins, how it got here, and what its demise means for the crypto industry.


"List of 18 New ETHDenver Projects Entering the Finals"


The ETHDenver 2023 conference has come to an end. The 18 projects selected by the jury for BUIDLWeek are officially announced. The jury selected 3 projects in DeFi, DAO, public products, and NFT metaverse, and infrastructure projects were the largest category of shortlisted projects, with a total of 6 projects selected. According to the list of projects shared by Mike Stepanovic of The New York Times, BlockBeats briefly organizes the 18 projects based on existing information as follows.


Interview with 75 ETHDenver participants Participants, what "wealth codes" did they find in the conference? "


On March 5th, the Ethereum Denver Developers Conference is coming to an end. The scale of this conference is unprecedented. A total of more than 40,000 people participated, and more than 300 projects participated in the previous hackathon. Encryption researcher Will @FinanceYF5 shuttled through more than 20 venues, interviewed 75 participants, and had a simple exchange on the feelings of the conference and industry trends. Let's take a look at how investors, developers, and encryption enthusiasts view the current development of each track.


Ordinals Founder Rages Yuga Labs auction, why is PSBT the correct solution for Bitcoin NFT transactions? "


Yuga Labs recently successfully issued the TwelveFold series NFT on the Bitcoin network through Ordinals, in just 24 hours That generated over $16 million in revenue. However, the auction of Yuga Labs received severe criticism from the founder of Ordinals and his team, and proposed to use PSBT technology to replace the auction mode adopted by Yuga Labs, which triggered heated discussions in the community. Why Are Ordinals Questioning Yuga Labs? What is PSBT technology? How does it solve the transaction problem of Bitcoin NFT?


On the Bitcoin Network Send Token? Learn how to mint BRC-20"


On the Bitcoin network, it can also be realized on the Ethereum network The effect of issuing ERC-20 Token @domodata has launched an innovative experiment based on the Ordinals protocol "BRC-20". The experiment aims to test whether the Ordinals protocol can promote the "substitutability" of Bitcoin, that is, to achieve the effect of issuing ERC-20 Token on the Ethereum network through the Ordinals protocol on the Bitcoin network. BRC-20 makes the Bitcoin network crazy again. On March 9, more than 30,000 "inscriptions" were minted, of which the number of text type "inscriptions" was close to 27,000. This article explores how to cast BRC-20.


《V God’s Optimistic ERC -4337 is coming soon, what are the new features? "


For crypto natives, wallet security has always been a headache, losing private keys, Mnemonic words, lost assets, inability to authorize, etc. will cause users to lose ownership of their assets; for newcomers to encryption, it is difficult to understand these different concepts at the same time, and frequent authorization and approval during transactions will also make newcomers feel uncomfortable. complex. This indirectly raises the threshold for entering Web 3, and many features of the upcoming ERC-4337 standard are just new standards that can help users solve these problems, and are also a necessary way to popularize encryption.


"Amazon's entry into NFT means What? An article to sort out community views"


Recently, the news that Amazon is about to launch the NFT market has sparked a lot of discussion in the market. According to people familiar with the matter, Amazon will launch its NFT platform on April 24. How will Amazon's entry into NFT, which has more than 300 million users worldwide, affect the entire market? Is it a sign that Web3 will finally usher in mass adoption?


《zkSync Era mainnet coming soon How does the testnet interact with DEX"


zkSync recently announced the launch of version 2.0, and called this version zkSync Era, SyncSwap is the AMM Dex newly launched on the zkSync Era test network recently (launched on March 1). By interacting with SyncSwap, on the one hand, it can increase the chances of getting ZK airdrops; on the other hand, if SyncSwap airdrops in the future, Then you, as an early adopter, may also be eligible for rewards.


3 Times 3 Months , Pendle's LSD Narrative"



"Holder benefits, integration and valuation, and product features all in one Pendle.” Pendle is a permissionless DeFi transaction revenue protocol on Ethereum, through which users can implement various revenue management strategies. At present, Pendle has become one of the best-performing protocols in the revenue market, which may elevate DeFi to the next level. DeFi researcher Trissy wrote about why Pendle is one of my biggest investments before my next bull run.


《Omnichain Token: Full Chain New Token Standards of the Times"


With the rise of various new public chain platforms in this cycle, cross-chain assets It has also become a rigid demand for all currency circle users. With the gradual increase of cross-chain assets, the standards of cross-chain assets are not uniform, the liquidity is fragmented, and various security issues follow, which also bring a lot of obstacles to the first batch of users who experience cross-chain assets even asset loss. So what is the reason for this phenomenon? Now that multi-chain development has become an inevitable trend in the industry, is there a better way to solve the pain points of users when crossing chains and provide more useful cross-chain services?


The Blockbeats Favored by Paradigm The team released a new product, an article to understand the artistic NFT aggregation platform Escher "


On the morning of March 7th, the Tessera team The founders made an announcement saying: Today I am very excited to announce our new platform, Escher, a curated marketplace for fine art prints. As soon as this announcement came out, it aroused heated discussions in the community. Escher's celebration of The Escher Edition series NFT released on zora reached 144,000 mint within 36 hours. What is the new NFT platform Escher? How to solve the pain points in the printmaking market? This article makes a brief summary of this.


《Chain games are traditional Is it a watershed for the big game companies? An article to understand the GameFi policy of Steam and Epic"


In the field of traditional games, platforms and distribution channels are extremely important, even if Games made by independent studios with only a few people, as long as they are favored by large publishers, can easily be recommended on platforms like Steam and appear in the eyes of players. And in the world of Web3 and blockchain games? We have seen many attempts to create a Web3 chain game platform, but so far, they are not ready, and in the short term, we can hardly expect them to evolve quickly. Since the original platform is still immature, can today's chain games only promote it piecemeal on comprehensive platforms such as Twitter and Youtube? The answer is no, because the doors of traditional gaming platforms have not been completely closed.


Crypto People: BitMEX Alliance Creator Arthur Hayes' Ten-Year Encryption Journey"


After half a year of supervision "house arrest", BitMEX Lianchuang opened a new The road to encryption. Hayes said his return wasn't intended to fill a void in crypto leadership. “That’s not what cryptocurrency is about, it’s not supposed to be based on a very small number of people running a company.” He’s returning in another way, as a commentator and market mover with an influential blog and Twitter account, And these are must-reads for cryptocurrency believers.


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