Viewpoint: The crypto capital market is basically back to 2014, and startups no longer have the opportunity to cooperate with banks

According to the report, Frank Chaparo, the chief editor of The Block News, tweeted that the Crypto Friendly Bank Signature Bank was closed, and the crypto capital market basically returned to 2014. Any newly established company had no opportunity to establish a relationship with the bank. In many ways, cryptocurrency has become a formal non-bank business.

Interpretation of this information:

The recent tweet made by Frank Chaparo, chief editor of The Block News, has brought to light the current state of the crypto capital market. He stated that Signature Bank has closed its doors to new crypto-related businesses, essentially setting the market back to its state in 2014. In other words, any newly established crypto companies are not able to establish a relationship with the bank at this point in time, which is a telling sign of how the relationship between banks and cryptocurrencies has evolved.

This tweet has sparked an interesting debate within the industry, with some arguing that the market is now moving towards a more decentralized future where the reliance on banks is reduced significantly. However, others argue that this is simply a sign of how banks view the cryptocurrency industry – one that is still extremely speculative and risky.

Regardless of which perspective one might have, it is clear that the crypto capital market is in a state of flux at the moment. Major players such as Signature Bank pulling out of the market indicate that there are still significant risks associated with cryptocurrencies, which banks are not willing to bear.

The implications of Signature Bank’s decision are far-reaching. The closure of the bank to new crypto businesses implies that any company looking to establish itself in the industry will have to look elsewhere for funding, which could stifle innovation and development. Moreover, it highlights the fragile nature of the crypto market, which is still in its early stages and has yet to be fully accepted by institutional investors and traditional banks.

In summary, Frank Chaparo’s tweet regarding the closure of Signature Bank to new crypto businesses highlights the current state of the crypto capital market. The decision made by Signature Bank is a telling sign of how the banking industry views cryptocurrencies at the moment. It also highlights the potential risks and uncertainties associated with the crypto market and how these risks are perceived by traditional institutions.