Despite growing concerns in the U.S. banking industry, the crypto industry remains strong, raising over $4 million through a token sale last week.
On March 19th, CryptoRank data revealed a significant increase in the amount raised despite the contraction. It shows the resilience and adaptability of the crypto industry.
Bankruptcy of major U.S. bank affects cryptocurrency industry
of data showed that the crypto industry has raised $4.11 million through token sales, despite a drop in token sales in the previous month.
Total funding over the last two months, including private rounds, increased to $6.89 billion from last month’s $933.55 million.
![Cryptocurrency Project Raises Over $4 Million Despite US Banking Crisis - 1](https://crypto.news/app/uploads/2023/03/Screenshot291-1024x386.png)
This is due to the failures of major banks Silvergate, Silicon Valley Bank (SVB) and Signature Bank, exposing the vulnerabilities of the traditional banking sector and temporarily moving the U.S. cryptocurrency market away from major fiat currencies. I took the entrance.
Analysts attribute the collapse of SVB and Silvergate to unfavorable market conditions and poor risk management. SVB’s fall was due to overexposure to long-term government bonds, which weakened as interest rates rose. This led to a shortage of bank assets when many depositors withdrew their funds at the same time.
Silvergate’s demise was fueled by the FTX meltdown, the loss of confidence in the crypto sector and short sellers expressing their concerns on Twitter.
The Signature Bank closure has sparked controversy. This is because the company was not insolvent and had already stabilized capital outflows when US regulators intervened.Many cryptocurrency enthusiasts saw this as a politically motivated move to kick cryptocurrencies out of the US.
With the collapse of Silvergate and Signature Bank, two major financial institutions that provide banking services to U.S. crypto companies, crypto companies will face major obstacles to interacting with the dollar-based financial system. widely believed. But recent fundraising successes suggest otherwise.
Funding Methods: ICO, IEO, IDO
Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial Decentralized Offerings (IDOs) are fundraising methods that differ in structure and execution but share similar goals.
ICOs allow companies to create and raise funds for new coins, apps, or services. An IEO involves an online exchange platform offering digital assets on behalf of a company, providing immediate trading opportunities. A modern funding model, IDOs are liquid and issued by decentralized exchanges.
Bitcoin (BTC), the world’s largest cryptocurrency, has undergone a tumultuous journey from hitting an all-time high of nearly $69,000 in November 2021 to breaking below $20,000 in March 2023.
Despite the banking crisis, Bitcoin is on the rise again, trading around $27,740 at the time of writing. CryptoRank.io data Binance leads the Bitcoin and Ethereum markets in terms of daily futures trading volume.