Silicon Valley Bank (SVB), which abruptly closed its doors last Friday, may soon be in better shape thanks to a proposal circulating on social networks. Internet users have suggested that Elon Musk, the new CEO of Twitter, should buy the ailing bank. In a comment on Twitter, Musk was open to the idea.
Elon Musk, the savior of Silicon Valley Bank?
Since the beginning of March, the crypto sector has suffered repeated shocks. After the fall of Silvergate Bank, Silicon Valley Bank succeeded this Friday, March 10. It had to close its doors following pressure from California regulators. However, it seems that there is hope for SVB to get out of this difficult situation.
The day after the bank’s closure was announced, Twitter was the scene of heated discussions, featuring Elon Musk. Min-Liang Tan, CEO and co-founder of Razer, proposed to Musk to buy Silicon Valley Bank in bankruptcy and turn it into a digital bank. The Twitter boss, replied being open to discussion!
Following Tan’s proposal, several people gave their opinions on Twitter, including Mikael Pawlo, brand manager at Swedish FinTech Bokio, who fears that Musk does not have the funds to buy the bank.
Silicon valley Bank’s fall hurts the global economic system
The fall of Silicon Valley Bank has had a significant impact on the global ecosystem and the cryptocurrency industry in particular. As the 16th largest bank in the United States, with 17 branches in California and Massachusetts, SVB had a large influence on the market. When it collapsed, many companies, startups, and investors were severely impacted, losing billions of dollars of assets tied up in the bank. As a result, SVB stock fell by 60%.
Since the fall of Silicon Valley Bank, cryptocurrency companies have been hit hard with funds tied up in the bank. Circle’s USDC has suffered a steep drop, with 3.3 billion in blocked funds, but the situation seems to be settling down.
However, it is crucial to worry about the potential domino effect that could be even more painful for the entire market, even if Bitcoin is currently benefiting from it.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.