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On October 18, 2022, Silvergate Capital (SI) reported financial results which came up short of analysts' expectations. Moreover, the Company also announced that it is no longer on track to bring its own stablecoin to market this year.
“We are certainly disappointed that it looks like we are gonna miss our goal of launching it this year,” Lane said during Silvergate’s earnings conference call. "The delay isn’t related to any technology issues for the project, added Lane.
On this news, SI shares dropped over 22% wiping out more than $0.5 billion of the Company's capitalization.
Going back to the start of 2022, Silvergate bought the technology and other assets from Diem – the stablecoin project from Meta Platforms that was first announced as Libra back in June 2019.
Taking into all the facts and the chronology of events account, the shareholders have reason to suspect that the Company's management did not conscientiously perform its work and did not correctly inform investors about business prospects, or the regulator exceeded its powers, which led to a delay in the release of the product to the market.
Shock Event Date
18 October 2022