Signature Bank Stock Plummets as Crypto Banking FUD Spreads: The ongoing Fear, Uncertainty, and Doubt (FUD) in the digital currency ecosystem of today is notably impacting Silvergate Bank, one of the two dominant crypto-focused financial institutions.
Signature Bank Stock Plummets as Crypto Banking FUD Spreads
Signature Bank Stock Plummets as Crypto Banking FUD Spreads: At this time, Signature’s stock trading on the floor of the New York Stock Exchange (NYSE) is down by 10.5% to $92.50.
The premarket losses extended the slump that has been recorded throughout the week, and it has gotten a number of industry veterans wondering whether or not an implosion is coming up for the New York-based bank. The perceived strain emanates from the FUD surrounding Silvergate Bank, which unveiled plans to voluntarily fold up its business.
Silvergate’s demise has long been rehearsed since the industry started wondering to what extent it has exposure to the bankrupt FTX exchange. The straw that broke the camel’s back came when the firm delayed the filing of its financial performance report, citing the need to get its accounting right.
Turning point for signature
Signature Bank Stock Plummets as Crypto Banking FUD Spreads: While the outlook for Signature Bank with respect to its stock performance is negative, it is not necessarily impacting its liquidity at this time. The strain will be introduced when the ongoing fear spreads and depositors start pulling their funds away from the financial services provider.
Notably, the firm may be unable to guard against these withdrawals, but it will need to be at the forefront of its PR relations and reassure its customers and the public about how viable a business it is. With how volatile the crypto ecosystem is, it is not uncommon for business partners to deny themselves, and this could be a major turning point for Signature, depending on how it manages the current fallout.
Signature Bank Stock Plummets as Crypto Banking FUD Spreads: The term “crypto banking” is relatively new and can refer to a few different activities. Generally, the way people interact with cryptocurrency is by investing, not banking. That can involve buying and selling digital currencies on a trading platform. Traditional banking, on the other hand, is focused on managing cash and credit at a bank, such as with checking and savings accounts and loans.
Crypto banking, at its most basic, can refer to managing digital currency at a financial technology firm or financial services provider. These banking services can include simply holding a balance, making payments with a crypto debit card, and even earning interest involving one or more cryptocurrencies.