The XRP community is anxiously awaiting Ripple’s statement regarding the collapsed Silicon Valley Bank (SVB) and Ripple’s exposure to it.
Ripple CTO David Schwartz recently tweeted that the San Francisco-based company will make an announcement soon.
“We’re going to have a statement very soon. I really can’t say anything until we have a statement,” he said.
In a series of tweets, Ripple executives questioned why the Silicon Valley bank failed. Schwartz said he did not understand how a bank could become insolvent due to a run because its assets and obligations would not change in such a situation.
He suggested the bank was already insolvent and was not tracking its liabilities properly. Schwartz also pointed to the failure of the bank to mark-to-market its holdings of long-dated Treasury bills, which made it insolvent.
The XRP community is divided on Ripple’s potential exposure to the failed Silicon Valley Bank (SVB). Some have speculated that Ripple may have been affected, while others suggested that Ripple may have bought some of the SVB or become part of a liquidity solution.
Its members were concerned about the potential impact on the value of XRP, with some pledging not to sell their XRP if Ripple confirmed its exposure. While opinions vary, people are concerned about the situation and frustrated by the lack of information from Ripple.
Some members also expressed frustration at the lack of realistic thinking among some XRP holders.
The recent collapse of two U.S. banks, combined with blows from SVB and Silvergate, has thrown the cryptocurrency market into turmoil, with Circle reporting that its $3.3 billion in reserves were unusable.
The value of its USDC token plummeted, exacerbating existing problems facing the cryptocurrency market.