The recent news of Silvergate and SVB, two major banks in the United States, facing significant problems has raised concerns of a potential global financial crisis 2.0. The situation has been compounded by rising interest rates, which have left many banks with low-interest bonds that they are unable to sell quickly without incurring a loss.
One of the major concerns is the impact that this could have on the asset-backed crypto market, which has seen significant growth in recent years. Asset-backed cryptos are cryptocurrencies that are backed by tangible assets such as gold, real estate, or other commodities. These tokens are typically seen as a more stable investment than traditional cryptocurrencies because they are tied to real-world assets that have intrinsic value.
However, the recent news of US banks collapsing has raised questions about the stability of these assets. If the banks that back these tokens are facing significant problems, it could lead to a loss of confidence in the asset-backed crypto market, which could cause prices to plummet.
One of the banks that has been particularly hard hit is Silicon Valley Bank (SVB), which provides banking services to many major Silicon Valley companies. The CEO of SVB has urged customers to “stay calm,” but sources have revealed that the CEO sold $3.57 million of SIVB stock in the past two weeks, which has raised concerns that insiders have real concerns despite public statements to the contrary.
If more people start removing funds from banks like SVB, it could lead to a domino effect that causes the actual collapse of the bank. This could have significant ripple effects throughout the financial system and could lead to a widespread loss of confidence in the banking system as a whole.
The impact of a potential collapse of US banks on the asset-backed crypto market would depend on the extent to which these tokens are tied to the banks in question. If the tokens are directly backed by these banks, then the impact could be severe. However, if the tokens are backed by other assets such as gold or real estate, then the impact may be more limited.
Ultimately, the news of US banks collapsing is concerning for the broader financial system, and the potential impact on the asset-backed crypto market is just one of the many potential ripple effects. It is important for investors to stay informed and to monitor the situation closely to make informed decisions about their investments.
Asset-backed cryptos are gaining popularity as a more secure and reliable alternative investment, particularly when backed by tangible assets such as real estate or gold. However, a newer trend is emerging in the world of asset-backed cryptos: tokens backed by the yearly revenue of igaming and gaming platforms.
One example of this trend is DoubleJack.online, a popular lottery and casino portal. DoubleJack.online has launched an asset-backed token that is backed by a portion of their yearly revenue. This token offers investors a unique opportunity to invest in the growing online gaming industry, which has seen significant growth in recent years.
The advantage of an asset-backed token like DoubleJack.online’s is that it offers investors a stable and predictable return, based on the revenue generated by the gaming platform. This means that investors can benefit from the growth of the gaming industry without being subject to the same market volatility as traditional cryptocurrencies.
doublejack.online is the original and fastest growing operational iGaming philanthropic platform and community in the world, offering iGaming entertainment in over 190 countries. doublejack offers a unique affiliate partnership program – doublejack.club, splitting profits between its partners and charities. Initially launched in 2021, doublejack.online offers access to the world’s largest lotteries, over 200 casino games, and coming soon, sports betting. doublejack, after achieving “Unicorn” status, coupled with a stellar growth trajectory has now entered Phase Two of its Corporate Development model.