Lessons from a crazy 48h: diversification, level-headedness, and continued innovation are crucial to weathering these storms I was on a family skiing trip when everything started to unfold. I will never forget getting down a slope and understanding the gravity of the SVB situation. And while NEAR Foundation was not impacted (see our statement on twitter -- https://twitter.com/NEARFoundation/status/1634313036386164736?s=20), my husband’s company was heavily impacted by the SVB crisis with 90% of funds trapped in the bank. Fair to say that our vacation was put to a halt and it’s been a hellish 48 hours, as it's been for many entrepreneurs, VCs and founders. The recent SVB situation has raised many questions about the interplay between the traditional financial system and the crypto world. As someone who has been involved in the industry for years, I've seen how intertwined the two can be. However, when things go wrong in the "real world", the promises of crypto can fail. USDC is the most regulated stablecoin – the poster child of the industry. And yet, it has been put in jeopardy by the traditional system. One of the biggest takeaways from the SVB situation is the importance of diversification. Startups and projects need to build new banking relationships both domestically and internationally. It's crucial to have strong treasury and cash flow management while thinking about traditional assets, as well as non-traditional assets (probably time to think about crypto for those not on it!). Another lesson learned is the power of rumours in the age of social media. While Twitter can be a valuable source of information, it's important to stay level-headed, think about solutions, and avoid panicking or over-reacting in a crisis. Regulation can be a helpful tool, but it's not a silver bullet. The speed at which funds could be withdrawn from SVB ($42bn in 24h, the biggest bank run ever) highlights a significant improvement from 2008, given new digital interfaces. Moving forward, we need to ask ourselves some critical questions. Will there be more banks falling? Will the state continue to step in, and is that a good thing? The underlying root causes of what happened are much deeper and still not solved to their core. Put simply – the pandemic saw the government printing more cash, then came inflation, and then the government increased the interest rate, making the treasury bond held unattractive. What we can already see is that the recent SVB situation also raises interesting questions about CBDCs and stablecoins. Which will be the winner in a couple of years? The US seems to continue being at war with crypto, with the closure of Signature bank because crypto is “toxic” – illustrating a new war of ideology. Despite these debates, I believe there is a path forward where all can co-exist. Technology is here to empower us, and we need the promises of crypto now more than ever. The SVB situation has shown us that the interplay between the traditional financial system and crypto is complex and fragile. Diversification, level-headedness, and continued innovation are crucial to weathering these storms. Let's work together to build a more resilient financial system that benefits everyone.