1/ Fed's balance-sheet expansion - 🧵
Over the past 2 weeks, the Fed has created $400b out of thin air and injected this new liquidity into the banking system...via loans.
These newly created dollars are neutralising the natural deflationary forces (preventing liquidation)...
Current List of Companies With Silicon Valley Bank, $SIVB, Deposits:
1. Circle: $3.3 billion
2. Roku: $487 million
3. BlockFi: $227 million
4. Roblox: $150 million
5. Ginkgo Bio: $74 million
6. iRhythm: $55 million
7. Rocket Lab: $38 million
8. Sangamo Therapeutics: $34 million
9. Lending Club: $21 million
10. Payoneer: $20 million
The worst part?
These are only the companies that have disclosed their exposure SO FAR.
SVB has nearly $200 billion in deposits with 97% of those deposits above the $250,000 FDIC limit.
This can't end well.
SVB does not deserve a bailout.
A deep look at their financial statement reveals how horrific they were at risk management.
And in my opinion incompetence explains only part of it.
Moral hazard must have been at play.
A thread.
1/
One thing with Taiyo is that we never had influencer shills we organically made the project what it was after we de-rugged it.
Everything has been organic since day1 and I wouldn’t have it any other way.
Clearing up misconceptions that have spread in Twitter spaces:
1) This 120m valuation number they throw around is made up; this has never been a number said by us.
2) Sweeping 200 Taiyo's before take over announcement; there's never been 200 listed and we don't own 200.