GM, this the Yellow Dip - the weekly newsletter that makes crypto as fun as a weekend in Vegas. What happens here, stays here.

On our agenda, today we have:

• Quick dips

• Banks collapse, and how does it affect crypto

• Yellow Dip Crypto portfolio performance rallied 🚀

Quick Dips

Banks collapse, how does it affect crypto

In our previous week's story, we discussed the dangers with crypto's favourite bank. (Wow! Did we predict this was going to happen?). Today, we build on that as a lot has happened. Silvergate, the go-to bank for the crypto industry, is officially winding down its operations and liquidating $11 billion in assets. Apparently, they were facing a financial crisis and didn't know if they'd survive the next 12 months.

Why this matters? This is bad news for the crypto market because Silvergate was one of the two major traditional finance players that allowed companies to move money in and out of the crypto market. Without Silvergate, exchanges like Kraken, Coinbase, and Gemini will struggle to stay liquid. It'll be harder to deploy fiat on their platforms, which means digital asset inflows will slow, and volumes will decrease. This will hurt mass adoption, and users may be turned off from dabbling in crypto.

Okay, if this wasn't enough, there's this bank called Signature Bank and it was a big lender to cryptocurrency companies. But recently, it also went bankrupt and now the people who invested in it are losing their money.

What happens to the money? The good news is that people who put their money in the SVB & Signature bank, will get all their money back this week because the government is making sure they do. This is important because lots of companies use these banks, and if they had gone bankrupt, it could have been really bad for them and the people who work there. But now, everything is okay and people won't lose their jobs or their businesses.

Now what? We might see some industry players form their banks like Kraken, which recently said it's creating the Kraken Bank. Either that or everyone will need to turn to sketchy, unregulated banks, which would be riskier for customers. And if you're a budding crypto startup looking for a banking partner, forget it.

Rescue deal. Moving on to the UK, the Silicon Valley Bank's UK arm has been bought by HSBC for a nominal 1 pound ($1.2) in a rescue deal. The sale was overseen by the Bank of England and the Treasury after the SVB collapsed on Friday, sparking panic in Britain over its key customers in the technology and life science sectors.

HSBC agreed to pay just 1 pound for the business, and the deal excluded assets and liabilities of SVB UK's parent companies. HSBC expects a gain to arise from the acquisition. SVB UK's customers "can continue to bank as usual" and will be "safe in the knowledge that their deposits are backed by the strength, safety, and security of HSBC."

In conclusion, the crypto market will hang in the balance of the few banks that stick around. While the Silicon Valley Bank's UK arm has found a new home with HSBC, it's a reminder of how quickly things can change in the financial world. We'll have to wait and see what happens next.

Yellow Dip Portfolio Performance, we rallied!

This is how our starter's portfolio is performing, with our low-medium risk goal.

Our Portfolio (Last Week) : 1.05%

Our Portfolio (Lifetime) : 39.51%

😂

That's it for today. Stay curious & see ya next week! We hope you learned something new.

As always, feel free to share your thoughts and feedback, and don't forget to share our hard work!

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice to buy or sell any assets or to make any financial decisions. Please be careful and do your own research