Bitcoinist: Bitcoin has recently been rising in the midst of widespread banking sector issues, prompted by Silicon Valley Bank.
But bank runs have been a recurring issue throughout history, causing significant damage to the economy.
The collapse of major banks and the panic that followed during the Great Depression of the 1930s led to the creation of regulatory bodies such as the Federal Deposit Insurance Corporation (FDIC) to prevent future crises.
While the banking industry has evolved significantly since then, with the rise of online banks and fintech companies, the potential for crises still exists. Recent events show this risk is very real, prompting many to look to Bitcoin as a solution to avoiding banking crises.
In this article, we will explore the history of bank runs, their impact on the economy, and the measures taken to prevent them. We will examine examples of bank runs throughout history, including the Savings and Loan Crisis of the 1980s and the 2008 Financial Crisis.
Cointelegraph: Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.
The ongoing downturn in the crypto market hasn’t stopped European venture capital (VC) firms from investing in DeFi projects. A new report revealed that European DeFi startups saw a 120% increase in VC funding last year.
The Euler Finance saga continued to dominate headlines, with the exploiter returning a significant chunk of the $190 million in stolen funds. The exploiter has returned over 58,000 stolen Ether ETH tickers down $1,998 in one installment, and another $37 million worth of ETH and Dai DAI $1.00 in the second one.
Traditional banking giant, Citibank, forecasts tokenization will take over traditional finance and predicts that by 2030 trillions in assets could be tokenized.
MakerDAO passed a new constitution to create multiple offices tasked with fulfilling various jobs for the protocol, each with its powers and responsibilities.
The top 100 DeFi tokens had a mixed week and didn’t see many changes from the previous week, with a majority of the tokens trading in green.
🗒️ The rise of 'zombie VCs' — Dark times expected after Silicon Valley's startup ecosystem lost its favorite bank
CNBC: For some venture capitalists, we’re approaching a night of the living dead.
Startup investors are increasingly warning of an apocalyptic scenario in the VC world — namely, the emergence of “zombie” VC firms that are struggling to raise their next fund.
Faced with a backdrop of higher interest rates and fears of an oncoming recession, VCs expect there will be hundreds of firms that gain zombie status in the next few years.
“We expect there’s going to be an increasing number of zombie VCs; VCs that are still existing because they need to manage the investment they did from their previous fund but are incapable of raising their next fund,” Maelle Gavet, CEO of the global entrepreneur network Techstars, told CNBC.
Venturebeat: The passing year may very well be considered seminal when it comes to the evolution of cryptocurrencies and Web3 in general. Numerous events across the globe, some tragic, have put digital assets in the scopes of financial regulators like never before — prompting many to conclude that the sector has finally “gotten serious” this year.
At the same time, the mass adoption of cryptocurrencies continues unabated among regular users and institutions alike, and this trend will only grow in 2023 and beyond.