The cryptocurrency industry is in a state of flux, with many companies and banks vying for a share of the market. One of the most prominent players in the space is Silvergate Bank, which has been providing banking services to cryptocurrency companies since 2013. However, in recent months, several major players in the industry have decided to distance themselves from Silvergate Bank, citing concerns about its business practices.
Gemini, Crypto.com, Bitstamp, and MicroStrategy have all announced that they are no longer working with Silvergate Bank. The reasons for this decision vary, but they all cite concerns about the bank’s lack of transparency and its failure to provide adequate customer service.
Gemini, a digital asset exchange founded by the Winklevoss twins, was the first to announce its decision to distance itself from Silvergate Bank. In a statement released in April 2021, the company said that it had “lost confidence in Silvergate’s ability to provide the level of service and transparency we require for our customers.”
Crypto.com followed suit in May 2021, citing similar concerns about Silvergate Bank’s lack of transparency and customer service. The company said that it had “decided to move away from Silvergate Bank due to their lack of responsiveness and transparency.”
Bitstamp, one of the world’s oldest cryptocurrency exchanges, also announced that it was no longer working with Silvergate Bank. The company said that it had “decided to end its relationship with Silvergate Bank due to its lack of transparency and customer service.”
Finally, MicroStrategy, a business intelligence firm that recently made headlines for its investments in Bitcoin, also announced that it was no longer working with Silvergate Bank. The company cited similar concerns about the bank’s lack of transparency and customer service.
The decisions by these major players in the cryptocurrency industry to distance themselves from Silvergate Bank is a major blow to the bank’s reputation and could have serious implications for its future. It remains to be seen how Silvergate Bank will respond to these developments and whether it will be able to regain the trust of its customers.
Source: Plato Data Intelligence: PlatoAiStream