Immutable X Denies Exposure To Silvergate Amid Growing Crisis

Key Points:

• Robbie Ferguson, the co-founder of Immutable X, has said Immutable X has no connection to Silvergate and Silicon Valley Bank.
• Immutable holds AU$280 million in the bank, and it is not leveraged.
• Shares of SVB Financial Group fell more than 60% earlier on the bad news.

Robbie Ferguson, the co-founder of the NFT Layer-2 expansion solution Immutable X, has announced that the company has no exposure to the collapsing crypto bank Silvergate amid the concerns about contagion increased.

Ferguson also confirmed Immutable X has no connection to Silicon Valley Bank (SVB), which currently holds A$280 million in cash (about $184 million) in the bank and never uses financial leverage.

According to Bloomberg News, people familiar with the news revealed that Founders Fund, a venture capital fund co-founded by Silicon Valley “venture godfather” Peter Thiel, has advised companies to withdraw capital from Silicon Valley Bank because of concerns about stable financial performance. The firm tells its portfolio firm’s clients that there’s no harm in taking their money out of the bank.

Shares of SVB Financial Group, the parent company of Silicon Valley Bank, fell more than 60% on Thursday following the news earlier today and fell another nearly 21.9% after hours. Dozens of VCs, including Peter Thiel, the godfather of Silicon Valley VCs, offered to withdraw assets from it.

SVB’s CEO, Greg Becker, called a conference call on Thursday to advise Silicon Valley Bank customers to stay calm amid concerns about the bank’s financial health.

The market quickly received this bad news, causing the US30, S&P 500, and Dow Jones indexes to all fall. Even the crypto market is in the red, with Bitcoin price trading at $20,000.

Silvergate Bank’s parent company, Silvergate Capital Inc., said that it would “voluntarily liquidate” the bank’s assets and depositors, as Coincu previously reported. This event has raised concerns among companies exposed to banks and the entire cryptocurrency market.

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Harold

Coincu News