While a quarter remains for 2023, the year can be definitively described as a complete rollercoaster for the financial technology industry. From the collapse of Silicon Valley Bank in the US to the rise of decentralized finance, or DeFi, the industry is indeed not only among the fastest growing in the world but also one of the most unpredictable.
The same can be said for cryptocurrency. The fintech sub-space has also had an interesting past few months, to say the least.
Bankruptcy’s and company collapses defining late 2022 and early 2023
In 2021, crypto currencies were traded at all-time high values, with the likes of bitcoin (BTC) and Ethereum (ETC) being traded at prices of as much as US$67,549 and $4,724, respectively. Toward November of that year, the bull market was at its height, pushing top cryptocurrencies like BTC, ETC, and Solana (SOL) to unprecedented price levels.
Unfortunately, just like the overall fintech market, crypto also saw rapid decreases in value. The steep drop in cryptocurrency prices that mostly occurred in 2022 forced a procession of major firms into bankruptcy, as well as triggered a government crackdown and effectively erased the savings of millions of inexperienced investors.
Some of the most notable bankruptcies have been for the crypto firms FTX, Celsius Network, Voyager Digital, BlockFi and Genesis Global, and more recently, Signature Bank and Silvergate, to name a few.
Crypto on the rebound
Following its survival of a crash that is essentially worth US$ 3 trillion in losses, cryptocurrency is seemingly poised to fully rebound. Bitcoin and other tokens have recovered, while major companies and funds continue to plow capital into cryptocurrencies.
Spearheaded by a recent rally of as much as 60% in Bitcoin, the token market is back to where it was before FTX collapsed in November of last year, and is now worth an estimated $1.1 trillion.
Shares of Coinbase are ahead 70% as of late, while “miners” of Bitcoin like Marathon Digital Holdings (MARA) have surged more than 150%. The Global X Blockchain exchange-traded fund (BKCH), a basket of crypto-related stocks, is also up 90%.
Albeit just temporary, Dogecoin (DOGE), a cryptocurrency that began as a joke, also rose in value by 30% following X-owner Elon Musk swapping the then-Twitter’s bird icon with the Dogecoin’s Shiba Inu logo.
Empowering customers with crypto
Despite the seeming recovery from crypto, its volatility as currencies as well as that of its overall market remains to be seen. However, with the significant potential it continues to offer in terms of usage and as a means to grow wealth, it simply cannot be ignored.
It is for this reason that, in 2016, Black Banx began offering crypto currency as a deposit in 2016. Two years later, the Toronto-based global digital banking firm launched a fully fledged crypto currency trading with BTC and ETH as crypto currency.
While Black Banx already offers private and business accounts in 28 FIAT currencies, it saw fit to also give customers the means to trade and transact in crypto currency. The company’s mission has always been to provide banking access without restrictions based on nationality, country of residence, religion, amount of funds held or transferred, and, in this case, preferred medium or currency.
In fact, by connecting its fledged banking platform with the features of a crypto exchange, Black Banx offers a unique cryptocurrency proposition that gives our clients autonomy over their finances as it enables them to use their crypto balance to pay third parties directly from the Black Banx platform.
This means no need to cash out to spend it like traditional currency. This has also meant little to no conversion fees incurred. And, most importantly, this has allowed customers to conveniently enter the crypto market while using their FIAT-based finances to get started.
Cryptocurrencies are indeed an essential component of fintech, and its popularity is expected to grow well beyond this year 2023. Other cryptocurrencies are gaining traction, and Black Banx is ready to ensure that customers around the globe are not one to miss out.
Advances that can be counted for the foreseeable future include the continued launch of new coins, the furthering of tokenomics, and a greater overall usage of cryptocurrencies by businesses and consumers. In addition, the incorporation of cryptocurrencies into common financial operations, such as online shopping and remittances (which Black Banx already offers) will continue to add to the cryptocurrency market’s rise.