NAUMAN SHEIKH: Well firstly, I'm surprised that crypto hasn't
reacted more strongly to the news,
Bitcoin still above $23,000, because if in the worst case
scenario it has a major impact, in my opinion, you know,
Silvergate is stuck in a doom loop [INAUDIBLE]
fourth quarter lost a billion dollars.
It's been forced to sell assets at firesale prices,
so I'm not surprised by the capital shortfall.
I mean, the more important bit about Silvergate
is its SEN network.
And all the market makers within crypto, they regularly
use the SEN network to transfer digital currencies and fiat
currency to other Silvergate accounts and to other brokers
and to other counterparties.
And if there's-- the question of Silvergate being an ongoing
concern, if it becomes a reality, that's a major player
that's out of the market.
And there aren't many competitors out there.
I mean, there's Signature Bank, but even
Signature Bank is cutting ties with non-corporate clients
as well.
So it is a big issue in terms of liquidity and
a possible liquidity crunch.
And in terms of crypto, how it would react,
it hasn't reacted, right?
And I-- and my sense is that it's just a matter of time.
There's a lot more at play right now, right?
It's a whole macro factor behind it as well.