Silvergate Bank Terminates Crypto Payments Network as Shares Plunge to Record Low – Featured Bitcoin News
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Silvergate Bank has recently announced that it is terminating its crypto payments network, Silvergate Exchange Network (SEN), due to low demand and declining usage. This news comes as the bank’s shares have plummeted to a record low.
The SEN was launched in early 2018 to enable institutional investors to trade cryptocurrencies with each other. It was described as a “frictionless” and “secure” platform that allowed participants to settle trades instantly in US dollars.
However, despite initial interest, the network failed to gain traction. According to the bank’s CEO, Alan Lane, the usage of the SEN has declined significantly in recent months, leading to the bank’s decision to terminate the service.
This is a blow to the crypto industry as Silvergate Bank is known for its focus on the sector. The bank has been one of the few financial institutions that have been willing to work with crypto-related businesses. Its decision to close down the SEN could signal a shift away from cryptocurrency-related activities due to market volatility and regulatory concerns.
In addition, the bank’s shares have plummeted to a record low, falling by over 22% in September. This could be due to investors’ concerns about the bank’s exposure to the crypto industry and its ability to generate revenue in a volatile and constantly changing market.
The closure of the SEN is not the first time that a crypto-related venture has failed to gain traction. Over the past few years, many crypto exchanges, wallets, and payment platforms have shut down due to lack of demand or regulatory issues.
Despite this setback, the crypto industry is still growing, and many companies are working to expand and improve their services. In recent years, cryptocurrencies have gained wider acceptance, and many traditional financial institutions are now exploring ways to incorporate them into their business models.
While the closure of the SEN is a disappointment for the crypto industry, it is not necessarily a sign of its demise. As the market evolves, there will be both successes and failures, but the overall trend is towards increased adoption of cryptocurrencies and blockchain technology.
In conclusion, the termination of Silvergate Bank’s crypto payments network highlights the challenges of operating in a fast-changing and volatile market. However, it is also a reminder that the crypto industry is still in its infancy, and there is much potential for growth and innovation in the future.
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