In a brief series of tweets devoid of facts, Garlinghouse said that the SVB crisis would not impact everyday operations.
On March 12, Ripple CEO Brad Garlinghouse used Twitter to address the company’s relationship with Silicon Valley Bank and reassure investors.
As for the company’s exposure to SVB, Garlinghouse noted, “we foresee NO interruption to our day-to-day operations and already held a majority of our USD w/ a larger network of bank partners.”
His quick string of tweets was meant to put people at ease. It’s safe to say that Ripple is still doing well financially, as he tweeted.
Garlinghouse was vague about how much cash the corporation had in SVB. “I never suspected you or @Ripple of having exercised sufficient risk management,” one person remarked.
On March 11, Ripple’s chief technical officer David Schwartz said the business would state its Ripple exposure “shortly,” although it’s unclear whether he meant the Garlinghouse tweet.
The Federal Reserve unveiled a $25 billion lending scheme to help banks maintain liquidity during financial stress a few hours later.
As per a separate Fed statement, Silicon Valley Bank depositors will once again have full access to their funds as of Monday, March 13. It said the settlement of Silicon Valley Bank would not result in any taxpayer damages.
On March 10th, Schwartz said, “I still don’t see how a run on a bank can force it to go bankrupt. A solvent bank is one whose assets are greater than its liabilities. […] They would have grown financially stable once their 10-year treasuries matured if they had invested in them. A run prevented them from taking advantage of the situation.
Ripple’s XRP fell from its March 9 high of $0.40, when it had risen against market trends, to its March 12 low of $0.35, before rebounding.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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