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The recent collapse of Silicon Valley Bank has rekindled fears from traditional finance that a prolonged recession is imminent. On the one hand, rising retail prices require quantitative tightening measures, and on the other hand, rising interest rates are harming financial institutions.
What could this uncertainty mean for the crypto market, including Bitcoin (BTC), altcoins, and brand-new projects such as AltSignals (ASI)?
Silicon Valley Bank, previously the 16th largest commercial bank in the US, collapsed rapidly after a classic bank run left the institution unable to repay its creditors. This led to fears of a 2008-style collapse in the US banking system, which would have far-reaching implications for the rest of the global financial market.
The crypto market is unlikely to be safe from a widespread loss of faith in the financial system; however, Bitcoin saw its highest daily price increase in the wake of the collapse of Silicon Valley Bank.
BTC’s 45% price rise almost mirrors a rapid increase in the price of gold, which hints that large institutions have treated the top cryptocurrency as a hedge against financial collapse. However, altcoins in the crypto market have not responded with the same relative strength, which may indicate further trouble over the coming weeks.
Whether the crypto market continues to follow Bitcoin’s price patterns awaits to be seen. Despite the recent Silicon Valley Bank news, the crypto market continues to push toward local highs, and new platforms such as AltSignals look ready to capitalize on that movement.
The AltSignals crypto presale is a long-awaited event, as the project has supported over 50,000 users with profitable trading signals since it first launched in 2017. AltSignals is now expanding its blockchain offering to include an AI-powered trading toolkit called ActualizeAI.
The ASI presale attracted $112k during the same period that Silicon Valley Bank collapsed. This may be an uncharacteristic sign of strength relative to other altcoins in the crypto market, which is likely to indicate considerable upside for the token when it is launched on digital asset exchanges later in the year.
AltSignals is an online trading group that uses algorithmic tools to deliver signals with an unparalleled rate of accuracy. The proprietary indicator released by the platform, AltAlgo
, has consistently signaled profitable crypto market trades with over 70% accuracy and has helped traders who matched its calls to 10x their portfolio in 19 separate months.
The new AI-powered trading stack, currently under development by AltSignals, is designed to optimize the frequency and accuracy of trading signals shared within the group. ActualizeAI leverages natural language processing (NLP) and predictive modeling to bring machine learning capabilities to the project’s algorithmic indicators.
AltSignals’ new token, ASI, will supercharge the new blockchain services available on the platform and provide direct access to ActualizeAI. A core aim of the AltSignals project is to help traders of all skill levels navigate volatility in the crypto market while making sizable profits over the long term.
The primary utility of the ASI token is to finance the development and provide access to ActualizeAI. Token holders can also stake ASI on the AltSignals platform without any specified lock-up period and gain voting privileges in future governance proposals from the project.
Holding ASI tokens will also provide access to AI Members Club, which contains a range of additional services for the AltSignals community. Members can also join trading tournaments on the new platform, where there are significant prize pools available for the winners.
AI Members Club also brings lucrative investment opportunities in early-stage crypto projects. Presales and private sales are often some of the most rewarding investments in Web3, and AI Members Club users can gain direct access to some of the most sought-after opportunities in the space.
The ASI token has been highlighted as one of the most exciting new releases on the crypto market. The token represents a project with a proven track record for success that is ready to grow, with 50,000 prior users already backing the new developments.
The presale will gradually increase the cost of ASI from $0.015 to $0.02274. When the presale is complete, ASI will launch on digital asset exchanges and be subject to free market movements. With extensive utility for the native token and deflationary tokenomics, experts are predicting significant gains over the coming months and years.
The 2023 price prediction for ASI highlights $0.50 as a critical resistance level. This would be more than 20x from the end of the presale, which is a testament to the project’s unique utility and product-market fit.
ASI looks to be a worthy addition to any investment portfolio at the current price of $0.015. The presale may be the perfect opportunity to get involved, as the cost will probably only remain very low until reaches its IDO valuation of $0.02274.
AltSignals is a fast-developing blockchain protocol that will soon be powered by artificial intelligence. The new ASI token provides a host of benefits within the ecosystem, and its embedded utility is likely to appeal to a significant number of blockchain users over time. Whether or not Silicon Valley Bank causes a short-term reaction across the global markets, AltSignals remains a strong investment option for the long term.
You can participate in the $ASI crypto presale here.
First Citizens has acquired failed bank Silicon Valley and will open former SVB branches today as First Citizens Bank and Trust Company.
According to the Federal Deposit and Insurance Corporation, First Citizens Bank is set to acquire the embattled state-chartered commercial bank Silicon Valley Bank (SVB). In a recent statement, the FDIC revealed that the bank holding company would acquire all deposits and loans of SVB. According to the deal, 17 former SVB branches will reopen as branches of First Citizens Bank and Trust Company. This development takes effect today, March 27th, with all SVB depositors, automatically becoming depositors of First Citizens Bank.
Just over two weeks ago, Silicon Valley reported roughly $167 billion in assets and approximately $119 billion in deposits.
The deal to acquire SVB saw First Citizens and the FDIC enter into a “loss-share transaction.” This agreement sees the government corporation absorb part of the losses on a certain pool of assets. As the FDIC explained:
“The loss–share transaction is projected to maximize recoveries on the assets by keeping them in the private sector. The transaction is also expected to minimize disruptions for loan customers.”
The FDIC also revealed that First Citizens would acquire approximately $72 billion of Silicon Valley assets at a $16.5 billion discount. Furthermore, an additional $90 billion worth of securities and other assets remain “in receivership for disposition by the FDIC.” The FDIC statement also disclosed that the government corporation “received equity appreciation rights in First Citizens BancShares common stock.” The potential value of these rights amounts to $500 million.
Initial estimates state that Silicon Valley’s bankruptcy cost the FDIC Deposit Insurance Fund around $20 billion. However, the exact cost will be established upon the FDIC’s conclusion of the receivership.
First Citizens’ chief executive officer Frank Holding Jr discussed its involvement with the FDIC, saying:
“We appreciate the confidence the FDIC has placed in us. First Citizens has a proud history of growing organically and through strategic acquisitions.”
The First Citizens CEO also added that he plans to enhance Silicon Valley’s business with private equity and venture capital firms.
It is unclear how many former clients of SVB will remain with First Citizens following the latter’s acquisition. This puzzle is valid because Silicon Valley lost several customers to other traditional and fintech neobanks during its chaotic bank run.
Several banks reportedly submitted bids or considered buying SVB following its collapse earlier this month. In the ensuing period, the FDIC, as the failed bank’s appointed receiver, tried auctioning it off. The process entailed two separate auctions for Silicon Valley’s assets, one for the bank’s traditional deposits unit. The other auction was for SVB’s private bank, which operated under its retail operations and served high-net-worth individuals.
Silicon Valley Bank sustained an insolvency crisis and eventually collapsed on March 10th after suffering a bank run. The bank’s demise makes it the second-largest bank failure in the United States and the most significant since the 2007/08 financial crisis.
SVB is also one of three US banks to suffer severe financial distress in March. The other two are Signature Bank and First Republic, with the former also collapsing while the latter entered liquidation. As it stands, a banking coalition led by JPMorgan (NYSE: JPM) plans to rescue First Republic.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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The collapse of Silicon Valley Bank is unprecedented and the reverberations in the broader tech and financial ecosystem are notably very resounding.
Silicon Valley Bank (SVB), dubbed as the biggest bank failure since the 2008 financial crisis has revealed that the buyer of the investment portfolio where it recorded a loss of $1.8 billion was the American banking giant, Goldman Sachs Group Inc (NYSE: GS). As reported by Reuters, the company sold the bond portfolio for a book value of $23.97 billion on March 8.
Following the sale of the portfolio, Silicon Valley Bank earned a total of $21.45 billion in proceeds that will be a part of what will be freed up for its investors and depositors. The push to raise funds by selling its shares to cover up the $1.8 billion loss has been tagged as the firm’s undoing.
Investors became worried that the company may not be able to cover up its losses with the fundraising and as such, it precipitated the worst bank run in US history. According to reports, a total of more than $45 billion was withdrawn from the company within the span of a few days. These liquidity woes forced US regulators to close the bank and announce its assets for auction.
Goldman Sachs was reportedly the firm that helped the company handle the share sale prior to its closure. Per the Reuters report, there was no conflict of interest in the Goldman Sachs purchase of the portfolio as the unit of the bigger bank that handled the stock sale was different from that which bid and make the acquisition.
The measure to handle such conflict of interest according to Jacob Frenkel, chair of government investigations and securities enforcement practice at law firm Dickinson Wright is popular with big banks. As pointed out, the share sale was based on negotiated prices, implying that SVB got the best out of the deal even with its poor financial outlook at the time.
The collapse of Silicon Valley Bank is unprecedented and the reverberations in the broader tech and financial ecosystem are notably very resounding. In a bid to prevent an aftermath that will be tough to handle, regulators promised to grant the bank’s depositors access to their money, a move they believe will strengthen the faith in the American banking system.
Additionally, the bank had to close down Signature Bank (NASDAQ: SBNY) on account that it poses systemic risks to the banking and financial ecosystem. This approach by regulators has been faulted by the bank’s executives and proponents in the crypto ecosystem that the bank primarily serves.
According to the complaints from industry experts, Signature Bank has a robust balance sheet and the closure of the bank is a testament to the strong anti-crypto message the US Government wanted to send to the emerging industry amid its banking crisis.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.