World’s richest man, Elon Musk has reacted to the collapse of Silicon Valley Bank (SVB) while making fun of crypto critics.
The CEO of Twitter and Founder of Tesla tweeted a meme featuring a person sweating in a fit of doubt having to make a choice between crypto and bank.
Investors King understands that the meme post featuring two buttons is a mockery of those who have been staunch critics of cryptocurrency, linking digital assets to scams.
While the caption under one button says “crypto is a scam, keep money in banks.” The caption under the second one tells you that “banks are a scam, keep money in crypto.”
Elon Musk is known for his long-standing support of cryptocurrencies, in particular meme coin DOGE, naming himself the Doge-Father.
It could be recalled that Silvergate bank, which offered its services to crypto startups and exchanges since 2013 recently stated that it is shutting down its operations due to issues relating to liquidity.
Similarly, one of the leading banks in the United States, Silicon Valley Bank (SVB) also faced liquidity issues leading to a fall in stock value and massive deposit withdrawal.
Its parent company SVB Financial is now in talks to sell the bank since customers have begun to actively withdraw their funds and the shares of the bank are plummeting. Customers withdrew a staggering $42 billion of deposits by the end of Thursday last week.
According to the Chief Economist for Moody’s Analytics, Silicon Valley Bank failed largely because of its links to the tech industry, because tech is getting nailed by all the rise in interest rates and changes in consumer preferences.
The collapse of the bank however did have a huge negative effect on the crypto market. As the news filtered in, Bitcoin plummeted by roughly 6%, losing the $24,000 level and dropping to the $22,000 zone within an hour.