The collapsing dominoes of crypto have reached the crypto banks with Silvergate and Silcon Valley Bank (SVB) closing last week. There are three common factors behind the 2 bank failures this week. Both banks failed to implement proven risk management practices present in the banking industry of managing concentration risk, interest rate risk, asset-liability mismatch and were woefully inadequately prepared for a bank run and reacted to the fast pace of rate increases and deposit withdrawls.
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