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Signature Bank Stock Plummets as Crypto Banking FUD Spreads: Details

Thu, 03/09/2023 - 13:08
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Godfrey Benjamin
Signature Bank currently on edge following its rival's demise
Signature Bank Stock Plummets as Crypto Banking FUD Spreads: Details
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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. 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.

With Silvergate Bank now out of business, there will be a lot of pressure on Signature to see how it can hold the gap in an industry that has been under intense scrutiny from American regulators.

Here's How This Whale Made $5 Million Overnight on Silvergate Plunge

Turning point for signature

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.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.