Dan Finlay is one of the co-founders of MetaMask, a well-known crypto wallet service that allows users to access decentralized web3 applications.
Finlay stated in an interview on the block that consumers who are not comfortable with cryptocurrencies are the industry’s “biggest plague” and explains what MetaMask is working on to remedy the problem.
Cryptocurrencies and financial markets booming after the collapse of the bank
The unpredictability around bank closures caused speculative panic among investors, resulting in large transactions as people seeking stability.
According to Dan Finlay, MetaMask’s group manager, others responded by making significant moves because they weren’t sure who they could trust. Finlay commented on an upcoming episode of The Scoop podcast with Frank Chaparro.
The company behind the USDC stablecoin, Circle, said on March 10 that it had $3.3 billion in reserves at Silicon Valley Bank (SVB), which was shut down by state regulators the same day. As a result, many users began to worry that the value of their stablecoins could decline, which would drive prices down.
The value of DAI also fell due to the heavy reliance on USDC support.
Finlay, the CEO of Metamask, claimed that the recent increase in business resulted in the company earning around $1.5 million in interchange fees. He added that it is a good sign for business that more and more people are switching to and leaving cryptocurrencies in various circumstances.
People see crypto and recognize its potential even in the midst of systemic upheavals. As a result, the current scenario can be seen as “very positive” for the crypto market, although it may contain certain systemic dangers.
The cost of cryptocurrencies has risen since the recent bankruptcy of two large banks. In response to growing concerns about the viability of the banking system, bitcoin and ethereum experienced notable increases.
Bitcoin rose 34% from its pre-SVB crash on March 10 to a staggering $26,400 on March 14. Like bitcoin, ethereum also saw a surge in value, hitting $1,780 that same day, 29% higher than the March 10 low.
Silicon Valley Bank (SVB), a startup lending organization, was taken over by regulators on March 10, marking the largest bank failure in the United States since the 2008 financial crisis. SVB had incurred huge losses due to interest rate hikes by the Federal Reserve and a group of depositors who wanted to withdraw their assets.
As a result, SVB came under pressure to sell investments at a significant loss, causing other depositors to panic and withdraw their money.
As a result of this panic, another organization, Signature Bank, was shut down and shares of regional banks fell on March 13. Even though it was, the Federal Deposit Insurance Corporation (FDIC) assured depositors that their money was safe.
Banking regulators laid out a plan over the weekend to bail out depositors with funds at SVB, which came close to failure. This move was instrumental in avoiding a financial panic.
Depositors at Signature Bank of New York, similarly closed due to concerns about systemic contagion, will have full access to their funds. Signature Bank was a major source of funding for bitcoin companies.
