Elon Musk, who is best known in the crypto world as a fan of the popular meme coin dogecoin (DOGE), has shared a new meme on Twitter to troll crypto haters.
— Elon Musk (@elonmusk) March 11, 2023
New crypto meme
The meme tweeted by Musk shows a person who, sweating, has to choose between pressing one of two buttons. The caption under one button reads: ”crypto is a scam, keep money in banks”. The other button has the following text: “banks are a scam, hold money in crypto”.
The meme is all about the current situation with Silvergate and Silicon Valley Bank (SVB).
Crypto bank Silvergate ran into financial trouble in early January. Last week the problems turned out to be bigger than expected and this week it came out that all operations will be stopped and the bank will go into liquidation.
Investor confidence went up in smoke after the crypto bank posted a billion dollar loss last quarter and had to lay off half of its employees. Investors took in more than $ 8 billion and to realize this Silvergate had to sell a large amount of assets at a loss.
Fall of SVB, effect on Circle’s USDC
In addition, the financially troubled US Silicon Valley Bank has been closed by the US regulators. It is one of the largest bank failures in the history of the United States. Earlier today you could read in the altcoin news that USD Coin (USDC) lost its peg to the US dollar as a direct result of this news. At one point, the value of USDC was even less than $0.90. At the time of writing, the price stands at $0.9135.
Circle gave up Twitter that it has $3.3 billion worth of stablecoins at SVB. This represents a significant part of the total $40 billion in reserves, which is why many investors chose to sell their USDC.