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Silvergate BlockFi News: With the FUD around further FTX contagion effect dragging on, the Silvergate BlockFi relationship is already creating some uncertainty. On Monday, crypto lender BlockFi officially filed for chapter 11 bankruptcy owing to the FTX contagion effect. Meanwhile, it remains to be seen how other firms that are heavily exposed to FTX respond in the coming days. Also, the Silvergate stock price dipped over news of the exposure to the crypto lender.
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Silvergate Stock Price Drop
Following the BlockFi bankruptcy filing, Silvergate announced it has minimal exposure to BlockFi. Due to this, the Silvergate Capital (SI) stock price dropped by 3% in pre-market on Tuesday. As of writing, the stock price stands at $25.36, down 2.08% in the day. The company said in a statement that it is capable of managing stress and volatility amid adversity. Silvergate Bank focuses on innovative businesses in fintech and cryptocurrency. Around 90% of its assets are said to be in cryptocurrency and distributed ledger clients, it is said.
“Silvergate’s deposit relationship with BlockFi Inc is limited to less than $20 million of its total deposits from all digital asset customers as of November 28, 2022.”
FTX Contagion Effects
On Monday, crypto exchanges Bitfront and AAX suspended services after the collapse of FTX. Citing industry challenges, Bitfront said it was shutting down operations. The recent crypto downturn began recently after FTX revealed it was facing a liquidity crisis. Following this, the cryptocurrency prices plummeted significantly, making it even more tougher for retail investors to make profits in crypto investments. Also, the shocking collapse of Sam Bankman-Fried crypto empire meant tighter regulatory vigilance on the digital assets industry across the world.
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The FTX token (FTT) price stands at $1.29, up 0.24% in the last 24 hours, according to price tracking platform CoinMarketCap. The token is trading at less 10% of its last month trading range of $25.50.
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