Looks like it is a popular blog, so hopefully someone can answer me for my 2 questions here.
The FED made the statement - where they highlighted:
No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
The Silicon Valley Bank assets auction is ongoing, however hard to imagine it will end well.
If that doesn't cover the deposits, the FDIC funds in play, what are 1,35% of total deposits. (the system is just wonderful, that a company can offer insurance with 1,35% of coverage!!!) According to Wikipedia, it was 120 billion in 2020. Well, maybe that covers this bank, maybe an other one, too. But what after??? Again money printing???
https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation
And then the crypto question. Obviously all exchanges have some bank connections, hold some money there (and plenty coin issuer, too), so the question is which coins, exchanges how much have in banks and which banks? I was trying to find it out, but there is no database about it, nothing, you can go 1 by 1, and even then, if you hardly find anything (as they are not transparent at all regarding bank connections) you won't know the actual numbers, only will be available for public, if it goes down. Insane!!!
Just an example, some people mentioned ByBit in the last few days, as an exchange where you can short USDC, so I checked out ByBit, it mentions only partnerships with Chainlink, Circle (USDC issuer). So for sure, it is highly connected to banking world, the question is how big % to which bank??? And you won't find it out, I spent couple of hours with that. Nothing. (Also insane, they offer short for their partner's stable coin.)
Because of that I missed the crypto pump, but I am very far from confident, if it turns out a crypto exchange (like FTX) goes down because of bank failure, we can see the FTX effect in crypto, and it can start a domino effect very easily.
So the question: Anybody know any 'regulator' or any other site, source where the coins, exchanges banking connections are detailed in any form??? Would be great to find it out very fast!!!
Anyway, tried to search for European bank failures. There is no database at all, even wonderful EU doesnt have it. What the hell they good for... Meantime, I know 2 very small ones what went down last year, but no mention about it, if the msm doesnt write about it, and search engines - even Brave - completely blind about it, for European bank failure getting results about American and 2008 failures... :) :) :) The amazing AI technology, programmed by amazing humans... :) :) :)
bit too long, anybody has answers?
Answer to the first question is, I assume more money printing.
In regards to the second part, I don't know where to get that information from either. I assume that if the exchanges have some fiscal responsibility in their practices, they will be parts of several banks, rather than just one or two. The company I work for likely has around 10 banks it deals with, partly because of risk aversion and partly because of localization convenience. This is what they had with SVB.
And what do you think, know about the crypto exchanges, coin issuers?
My experience, most of the companies are tied to 1-2 banks. I never worked for a really big, international one, what had more. And crypto market is still not that big.
Based on Circle (USDC) and the few exchanges I checked, I assume, that's the situation in most case. They tied to 1-2 banks. However, I can't find exact bank names and amounts.
Anyway, it's ironic, that I worry to lose my crypto because of banks, monetary system... :) :) :)
Aye, scale matters. Our company works with one bank only since the money is always in motion, we're not accumulating much, and it makes no sense to split what you are going to spend anyway. Any loss would be the worth of a few days of income. Which is bad enough, sure. Still, in the case of SVB, I read or heard about companies keeping half a billion in one place where only about 250 k are insured. Which is just laziness that turned out bad.
Only crypto on the blockchain is protected by the blockchain. Long term, it should not be tied to the fate of the banks it seeks to replace. Currently, though, we still transact in fiat. Crypto transactions are a small, next to none, percentage of what matters to the everyday dude, dudette, or dudity.
I have found out just recently, this 250k insurance thing, basically nothing else, just PR stuff, illusion to the people, that their small money is insured. The FDIC has 1,35% of the total under 250k$ deposits in its fund, so basically it's nothing. How I see, before 2008 even this did not exist. (So they can pay 1 out of 75 under 250k deposits from the fund... :) :) :) how can they call it insurance...) I try to find out what about Europe and rest of the world, nothing for sure, but it looks even worse.
When I wrote it, I meant two things, 1., a coin goes zero, so doesnt matter where you store (how it is still a possible outcome in USDC case) 2., the market will crush because of exchange failures, so I lose value, again: doesnt matter where i store (how it happened in the FTX case).
Maybe, it is interesting for you, too and to the rest of the readers. I asked several exchanges about it. They all denied to answer. They don't share it! Kinda like black-market... :) :) :) So I guess, I must buy more privacy coins...
This is the 'answer' I got from ByBit: