enowned technology tycoon Elon Musk, who has been a vocal advocate for cryptocurrencies, particularly meme coin DOGE, recently used Twitter to mock critics who dismiss digital currencies as fraudulent and suggest that individuals should store their funds in banks. These detractors are frequently notable figures in financial circles, host prominent podcasts, and are featured as guests on CNBC programs.

The issue at hand is that two significant banks that have been supportive of cryptocurrencies are facing significant difficulties. While one bank is set to close after experiencing losses, the other is in talks to sell itself to conventional financial institutions. These banks are Silvergate Bank and Silicon Valley Bank.

Following Elon Musk's tweet, Dogecoin experienced a marginal increase of less than 0.5%.

Musk's tweet contained a meme depicting an individual sweating profusely while faced with a decision to press one of two buttons. The text beneath the first button reads, "Crypto is a scam, keep money in banks." The text under the second button suggests that "Banks are a scam, keep money in crypto."

As previously reported, Silvergate Bank, which had been providing services to cryptocurrency startups and exchanges since 2013, including the bankrupt FTX exchange, recently announced its closure due to developments in the cryptocurrency industry and regulatory measures. The bank was owned by Silvergate Capital, which confirmed the shutdown of its banking division after selling its assets at a loss. This was necessary to offset the sudden withdrawal of $8 billion by customers as the cryptocurrency market began to decline.

According to reports, Silicon Valley Bank, the second major cryptocurrency-friendly bank, is reportedly planning to shut down. As previously reported, its parent company SVB Financial is currently in talks to sell the bank, as customers are actively withdrawing their funds and the bank's shares are plummeting.

*Article Photo Credits to Getty Images*


Mar 11, 2023
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