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Wow. I hope this won’t spread further. Looking at DAX, Deutsche Bank shares dropped as well as HSBC.

When I first read the news, I thought about another hit for the crypto, however looking at what happens I’m a bit worried where will the avalanche reach next Monday.

Stay safe folks!

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Both DB and HSBC have an LCR of around 130% so in theory able to sustain a bank run (depending on the magnitude - I think LCR is calibrated on a post Lehman scenario).

Why wouldn't events like this reinforce the value of crypto as an alternative to traditional big bank big gov't currency? It's operated in a completely different way that isn't based on debt creation.

Because crypto doesn’t change anything, exchanges had liquidity issues and went under in the same way as SVB did…

Crypto isn’t magic its just a glorified balance sheet.

And today it’s even more complicated since you need to exchange crypto for actual money so there is another layer of liquidity risk.

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