Crypto shares sink in premarket trading, part of a wider retreat in crypto markets as investors digested the unraveling of a key industry payments network.
Bit Digital, Coinbase, Canaan, Riot Blockchain fall over 4%; Marathon Digital falls over 3%.
The digital-asset industry is absorbing the fallout of the troubles at crypto-friendly US bank Silvergate Capital Corp., which has said that it’s reviewing whether it can remain viable. The bank offers a widely used payments network that facilitates the real-time transfer of funds between crypto firms. But many digital-asset exchanges, stablecoin issuers and trading desks are no longer accepting or initiating payments through Silvergate.
“Silvergate is one of the main US dollar banking providers for the crypto industry,” said John Toro, head of trading at digital-asset exchange Independent Reserve. “Any liquidity concerns will have a direct impact on market conditions and may affect the access and availability of some client funds.”
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