GM, this is The Crypto Xplorer, the daily newsletter that checks up on all your crypto injuries and motivates you to keep going.

Here's what we got for you today:

• SVB down, now what?

SVB down, now what?

All hell broke loose on Friday when Silicon Valley Bank (SVB) announced it was closing.

• USDC de-pegged and dropped to $0.89 ($3.3 billion in USDC collateral was locked up in SVB, representing 8.25% of the $40 billion in assets guaranteed by USDC).

• Millions of dollars of VC and startup funds were stuck in the bank. (meaning, they’re left wondering how they’ll meet payroll or even keep their business open).

• Signature (another bank based in New York) announced its closing down operations too.

After all, Silicon Valley Bank was the 16th largest commercial bank in the US and it’s the go-to bank for most Silicon Valley tech startups.

In Crypto, everyone panicked after Circle confirmed the news about its funds locked up in SVB.

People started jumping ship to USDT, leaving poor USDC to sink like the Titanic.

It was so bad that every other stable coin in crypto de-pegged, leaving Tether, the most criticized stablecoin in crypto, to be the only savior.

However, amid the chaos, a group of people stood up to save the day.

SVBDAO

It's a phenomenal group of 135 venture capitalists, founders, startup employees, and blockchain enthusiasts who sprung into action using a DAO structure to raise capital quickly, with the purpose of either.

1. Investing in SVB as a minority investor as part of a consortium to take it private, or, if that was not successful,

2. Investing directly in the startups that were affected.

Within 15 hours they:

• Solidified a game plan,

• launched a website,

• and completed a full white paper.

Within 36 hours they:

• had a token sale ready to go,

• 21 investors KYCed,

• press release launched,

• multiple NFTs were created,

• and millions in funds soft committed.

All of this was coordinated through a WhatsApp group.

However, on Sunday, March 12th the Treasury and FDIC announced that all depositor funds would be made whole, and bids were submitted to the FDIC by several potential acquirers.

So, within 48 hours as a community, they decided that the need to deploy capital into the ecosystem was no longer relevant and voted to disband the DAO.

However, the community remains connected, active, and ready for the next challenge.

We were honored to be a part of that group (although things were happening so fast we didn’t give as much value as we’d love to. But we were glad to be a part of it).

So we learned something over the weekend. we learned about the true power of a decentralized community driven by a single goal!

And no, we didn’t need discord or NFT to achieve that. We all had a single goal

“a desire to make a difference”

The future of crypto is bright.

That's all we have for today. See you on Twitter if you're there: @danielakpobare

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.