__Browsing 10 menus…__ from the same joint. __[Uber Eats](https://robinhood.com/stocks/UBER/)__ is going ghostbusting as hungry users get bogged down by menu dupes. The food-delivery app launched “virtual brands” (VBs) in 2017 to let restaurants offer unique online-only menus under *different* names. For example, __[IHOP](https://robinhood.com/stocks/DIN/)__ has a “Thrilled Cheese” virtual shop that you wouldn’t associate with IHOP, and __[Denny’s](https://robinhood.com/stocks/DENN/)__ operates “The Burger Den” brand for late-night orders. But some VBs are getting heat for effectively spamming the app, and Uber Eats plans to axe 5K of them, The Wall Street Journal [reports](https://www.wsj.com/articles/uber-eats-to-take-down-thousands-of-virtual-brands-to-declutter-the-app-2e05ca96). 

- __Taking out:__ The cuts mostly target VBs with duplicate menus, not the OG restaurants. For instance, a brunch spot offering the same breakfast burrito across a *dozen* different brands would get its dupes axed. 
- __Order up:__ More listings = more chances of being picked by scrollers. That’s why 41% of independent restaurant operators ran virtual brands last year. Uber Eats’ VBs have quadrupled since 2021, and make up 8% of US and Canada offerings (but less than 2% of orders). 

__Ghost kitchen, real problems…__ VBs were uber-popular during lockdowns as shuttered restaurants used their kitchens to whip up online orders to recoup sales. Big chains like __Denny’s__ and IHOP parent __Dine Brands__ have used VBs to market *new* delivery-only concepts (fine). But some restaurants have taken advantage by rolling out several brands with exactly the same menu (not fine). Now delivery apps are trying to reel it in:

- __[DoorDash](https://robinhood.com/stocks/DASH/)__ has said that restaurants must have at least 50% menu differentiation in their VBs.
- __[Grubhub](https://robinhood.com/stocks/GRUB/)__ has the same guidelines and requires VBs to post at least five different pics of their menu items (to avoid duplicate mozz sticks).

One restaurant, 12 menus (Nathan Stirk/Getty Images)

Dupe

__Too many cooks in the kitchen can make a big mess…__ That’s why Uber wants to clean up a barrage of cooks on its app. Users can get frustrated by choice paralysis when there are too many options, *especially* when many are the same (like: endlessly browsing __[Netflix](https://robinhood.com/stocks/NFLX/)__). For delivery apps, eliminating dupes and improving curation could ease selection fatigue and boost orders. 

Uber Eats is chopping thousands of “virtual brands” as delivery apps crack down on menu dupes

__Jibbitz on the red carpet…__ At some point in the past few years __[Crocs](https://robinhood.com/stocks/CROX/)__ [experienced](https://www.nytimes.com/2023/03/27/business/crocs-sales.html) a vibe shift from ugly-cringe to ugly-cool. The comfort-forward footwear brand regained relevance during the pandemic and hasn’t let its momentum slip off: Crocs’ sales rose 61% last quarter, and its annual sales have tripled since 2019. The clog-olossus expects another record year of growth as marketing investments pay off. 

- __Living room to runway:__ The brand has dipped its rounded rubbery toes into the luxury market through collabs with designers like Salehe Bembury (Versace, Yeezy). His $85 slingback Crocs can sell for hundreds of dollars on StockX.
- __Crocstars:__ Celeb endorsements have helped the brand expand beyond its workwear roots. Musician Questlove rolls up in Crocs to awards shows like the Oscars, and Post Malone, Bad Bunny, and J. Biebs have signed endorsement deals.

__Skewing younger…__ and more passionate. From superfans who own dozens of pairs to collectors who seek out rare collabs, the Croc life isn’t just about comfort. Growth has been fueled by Gen Zers who see the foamy shoes as a blend of comfort, nostalgia, and wearable meme (picture: [KFC Crocs](https://people.com/style/best-crocs-collaborations-of-all-time/)). Last year US teens [ranked](https://www.pipersandler.com/teens) Crocs as their #5 preferred footwear brand. Zillennial-fave footwear company Hey Dude, which Crocs bought for $2.5B in 2021, moved up to #7. 

Holey

__Functional is *still* fashionable…__ because the comfy life is hard to leave. Pandemic thrivers like __[Peloton](https://robinhood.com/stocks/PTON/)__ and __[Zoom](https://robinhood.com/stocks/ZM/)__ experienced a boom thanks to necessity (think: no gym, closed office). But their stocks have plunged from those highs as demand for their products cooled. Meanwhile, Crocs stock is up 48% over the past year because people aren’t willing to give up the sweats-and-clogs life. As workers’ tight grip on remote work shows, it’s hard to sacrifice strides made in comfort.

Crocs is still thriving with comfy clogs, proving not all pandemic trends have fizzled

🕵️ *Like a financial investigator who specializes in complex corn crime…* 

While the SEC regulates securities like stocks and bonds, the Commodity Futures Trading Commission (CFTC) regulates the US derivatives markets, including futures and options on futures (picture: corn futures). The CFTC has said that some crypto, like __bitcoin__, is a commodity, meaning it should oversee bitcoin derivatives trading. Yesterday the CFTC [sued](https://www.nytimes.com/2023/03/27/business/binance-cftc-lawsuit.html) __Binance__ — the world's largest crypto exchange — claiming the exchange failed to register with the CFTC while letting scores of US customers trade crypto derivatives. FYI: nearly 20% of Binance's revenue comes from US customers. 

DEFI(NE)

Heard on the Block: "CFTC"

Uber Eats chops thousands of “virtual brands” as delivery apps crack down on menu dupes

Dow Jones

S&P 500

Nasdaq

Bitcoin

Apple and Microsoft account for a record 13% of the S&P 500

🍔 Uber Eats goes ghostbusting

__“Just Bard it”….__ not as catchy. Last week __Google__ released its ChatGPT rival, Bard, as the chatbot race heats up (#AI-of-the-tiger). But Google expressed caution with the release, warning “things will go wrong,” and hasn’t integrated Bard into its search engine (unlike __Microsoft__, which launched a new CGPT-fueled Bing and 365 apps). Google’s cautiousness may be warranted: media publishers are gearing up for a showdown with Microsoft, Google, and __OpenAI__ over their bots, The Wall Street Journal [reported](https://www.wsj.com/articles/publishers-prepare-for-showdown-with-microsoft-google-over-ai-tools-6514a49e?). 

- __Facebook = no longer media’s biggest threat.__ In 2019, half of Americans got their news from FB, and publishers wanted compensation for lost ad revenue and traffic. 
- __Now it’s AI bots.__ As you’ve probably heard, large language models are trained on a massive amount of text data. That includes copyrighted articles from the web.
- __Media execs are demanding__ compensation for use of their content in AI-generated responses. CGPT has been known to plagiarize and tweak human writing. 

__CGPT feels a connection…__ Last week OpenAI announced that CGPT can now browse the web to pull info from *after* 2021 (in some cases). That could pose an existential threat for news outlets. Publishing execs have started examining how much their content has been used to “train” bots, and are said to be exploring legal options, led by the publishing trade group News Media Alliance. 

- __News Corp. CEO__ Robert Thomson said, “Clearly, they are using proprietary content — there should be, obviously, some compensation for that.”
- __“Fair use” law__ allows portions of copyrighted material to be used without permission in certain cases (think: news reporting, scholarly reports). 
- __In the past,__ techies like Facebook and Microsoft have struck deals to pay publishers for news featured on their platforms. While OpenAI has leaned on fair use, it said it has also paid for rights to certain content. 

Googling Bard or Barding Google? (CFOTO/Future Publishing via Getty Images)

Extra

__Moving faster than your problems can backfire…__ Rapid-fire AI releases show that tech titans are taking an “ask for forgiveness, not permission” approach. Industries haven’t yet had time to digest issues that could arise (picture: educators scrambling to detect cheating), from bias to misinformation to copyright infringement. But when issues catch up to the innovation, it could lead to a backlog of problems all at once.

As AI moves at breakneck speed, publishers gear up for a clash with Google and Microsoft

__TikTok on the (congressional) clock…__ Last week, __TikTok__ CEO Shou Zi Chew spent five hours being grilled by Congress to defend the app. President Biden has supported a bill that would give him the power to ban (or force a sale of) TikTok in the US, and urged Congress to pass it over national-security concerns. TikTok, the world’s fastest-growing app, has 150M+ US users. China said it would “firmly oppose” a forced sale of the app. A Tik ban would be a dream come true for __Meta__, __Snap__, and __Google’s__ YouTube. 

__All's not wells…__ __Coinbase__ is lacing up its gloves for a potential fight with regulators. The crypto exchange [said](https://snacks.robinhood.com/newsletters/XV2nKUGd5DMTWDzADnDXy/articles/29eKBjymymQ1oqSGNKt766/) it had received an SEC Wells notice saying that the commission is likely preparing to sue it over its coin listings and staking service. Coinbase has denied it lists securities and said it'd go to court if necessary. If this *does* go to court, a decision over whether cryptocurrencies are securities could force exchanges to delist some coins and reshape the crypto industry. 

Zoom Out

Stories we’re watching

__Sporting $100 leggings…__ from Shanghai to the Champs-Élysées. __Lululemon’s__ stretching its presence overseas in search of fresh $$. Last quarter the athleisure icon’s sales and profit jumped, while revenue from China soared 70% as the country reopened. Lulu plans to triple stores in China, which it expects to be its second-largest market by 2026. In the US, Lulu’s “experiential stores” (see: hot-yoga class next to the yoga-pants rack) have boosted foot traffic. Analysts also expect hot earnings when Lulu reports tomorrow.

__Stuck in the middle with two…__ political parties. __Walgreens__ is set to report tomorrow as it finds itself at the center of the abortion-pill debate. The pharmacy recently said it wouldn't sell the pill in 20 GOP-led states, including some where abortion’s still legal. In response, California said it wouldn’t renew a $54M contract with Walgreens — a drop in the chain's $132B annual sales, but a symbolic move. Meanwhile, Walgreens’ sales were down at the start of the year as Covid-test sales trailed off and vaccinations slowed. 

Events

Coming up this week

- __[Juice](https://snacks.robinhood.com/newsletters/XV2nKUGd5DMTWDzADnDXy/articles/1KevFebY5fVYSoamSbTGnX/):__ __Ford’s__ EV unit lost $2B+ last year as the F-150 maker splurged to boost electric production, but its OG biz was profitable. Ford’s “hybrid” structure could keep it charged until its EV biz catches up. 

- __[Handy](https://snacks.robinhood.com/newsletters/3XtgqHUIEm5oE3DC6ZBhxf/articles/3RuvJRJvN9vJbpi65yBtqj/):__ __Panera__ is teaming up with __Amazon’s__ biometric tech to let customers pay by scanning their palm. The bread-bowl icon hopes to make soup-and-salad habits easier (and stickier) for its 52M loyalty members. 

- __[Play](https://snacks.robinhood.com/newsletters/1lStK6DDLtXoSjK8u403uF/articles/7mfAG5UsUH3srAlwmA7QFZ/):__ __Netflix's__ ad tier hit 1M subs as more Americans pivot to cheaper streaming options. But with a password-mooching crackdown looming, the streamer is betting on blockbusters and video games to lure new subs.

ICYMI

Last week's highlights

Facebook is no longer media's biggest threat: now publishers are demanding compensation for AI bots using their content, The Wall Street Journal reports.

Despite layoffs, tech-sector unemployment was 2.2% last month, lower than the 3.6% national rate

🗞️ Publishers’ AI problem

__Started from the bottom…__ now we’re here? Crypto winter's frost may be starting to melt: __bitcoin's__ price has climbed more than 65% this year, while __ethereum's__ up over 40%. Over the past month alone, BTC's jumped close to 15%. What’s fueling the rally depends on who you ask. 

- __Flight to safety:__ BTC boosters say that recent bank failures actually *helped* crypto prices. When banking concerns grow, the argument goes, crypto becomes an attractive alt. 
- __Fed up:__ Some analysts say a cool-down in Fed rate-hike expectations may’ve boosted appetite for crypto investments.
- __Shallow pool:__ Since __FTX’s__ collapse, the bitcoin market has had reduced liquidity (think: fewer buyers/sellers), which can lead to big price swings. 

__Not fightin' the Fed…__ We know rate-hike decisions often affect stocks, but they can also affect crypto. When interest rates are expected to rise, safer assets (think: Treasury bonds) become more attractive against riskier investments (think: stocks, crypto). Stocks soared after the Fed knocked rates to near zero early in the pandemic, and plunged as the central bank quickly raised rates to fight inflation. Meanwhile, bitcoin's price declined seemingly in tandem with the techy Nasdaq — throwing cold water on the narrative that crypto is an inflation hedge (think: “digital gold”). Recently, expectations of a less hawkish Fed coincided with bitcoin's gains. 

One coin, many sides (Dan Kitwood/Getty Images)

SPRING

__Clean narratives can hide messy truths…__ Some investors may see crypto as a safe haven after __[Silicon Valley Bank](https://robinhood.com/stocks/SIVB/)'s__ implosion and the global banking panic that followed. But ultimately many factors — including rate expectations and liquidity — likely contribute to crypto prices. Now, with the collapse of three crypto-friendly banks, there's yet another factor to consider: the industry’s decreased banking access.

Bitcoin's recent rally has investors pitching competing narratives about crypto’s role

__Panera goes palm reading…__ not the mystical kind. Yesterday the bread-bowl icon [announced](https://www.aboutamazon.com/news/retail/introducing-amazon-one-palm-payment-at-panera) a partnership with __[Amazon’s](https://robinhood.com/stocks/AMZN/)__ biometric tech ("Amazon One”), which lets customers pay by scanning their hand. Amazon rolled out its pay-with-your-palm tech in 2020, and has expanded into dozens of Whole Foods, __[Starbucks’](https://robinhood.com/stocks/SBUX/)__ "pick-up" cafés, and even sports stadiums and concert venues. Now Panera’s testing the tech ahead of a potential IPO this year. 

- __My palm era:__ Customers link their MyPanera membership (or sign up if they don’t have one) and connect with an Amazon One account. After scanning their palm…
- __Hand it to you:__ Panera workers can see personal info like names, loyalty-points balance, and fave orders (think: Asiago bagel with *extra* cream cheese). 
- __Handful:__ The check-out tech is being tested at two Panera locations (in its hometown of St. Louis) but is set to expand to 10+ locations soon.

__“Pick Two” takeover…__ Panera wants to make broccoli-cheddar-soup habits more seamless for its loyal customers, because easy habits are easily *repeatable* habits. Panera has one of the largest loyalty programs in the US (over 52M members) and its loyalty-building habits are paying off:

- __Sip’d up:__ 25% of Panera's transactions come from Sip Club members, who pay $12/month for its unlimited-drinks subscription (imagine: endless coffee and tea). 
- __Paid out:__ A third of Sip Club customers end up spending more $$ on extra goodies (think: free lemonade, but you pair it with a $5 bagel). 

Scan

__Rewarding a habit strengthens a habit…__ By making habits easy and rewarding, chains like Panera and Starbucks can drive more sales. Case in point: over half of Panera’s and Starbucks’ US sales come from loyalty members. With the palm-scan tech, Panera hopes your lunch and coffee habits will get even stickier. 

Panera tests Amazon’s pay-with-your-palm tech to make loyalty (and coffee habits) easier

Tattooing was illegal in New York City between 1961 and 1997

🪙 Behind bitcoin's bump

__12 hours of “Outer Banks”…__ two hours of ads. __[Netflix](https://robinhood.com/stocks/NFLX/)'s__ ad tier is growing as more Americans pivot to cheaper streaming options. Bloomberg [reported](https://www.bloomberg.com/news/newsletters/2023-03-19/netflix-surpasses-1-million-users-for-its-advertising-business) that the $7/month subscription hit 1M US users two months after launching in November. While the #s are a drop in the popcorn bucket compared to Netflix's 230M+ non-ad subs, they apparently topped advertisers’ expectations. 

- __Adoption:__ In January 19% of new Netflix subscribers chose its ad tier. The ad-adoption is slower than that of its rivals: 36% of new __[Disney](https://robinhood.com/stocks/DIS/)__+ subscribers opted for ads after three months (and 21% for HBO Max).

- __#Subscripturation:__ The number of Americans who say streaming subscriptions are getting too pricey is up 50% since 2020, and nearly half of people in a recent [survey](https://www.forbes.com/home-improvement/internet/streaming-survey/) said they pay for streaming services they don’t use.

__Brick-breaking & blockbusters…__ Americans are bracing for Netflix’s password-mooching crackdown (expected this month). Meanwhile, Netflix needs to give 100M+ non-paying households a reason to pay for their own accounts. Yesterday the streaming leader said it planned to release 40 new in-app games this year, with 70 more in the works. It now has 55 games, including a "Too Hot to Handle" spin-off that’s racked up 1M+ downloads. Netflix also [reportedly](https://www.wsj.com/articles/netflix-bets-big-on-the-electric-state-as-it-seeks-to-build-franchises-385eae06?mod=hp_lead_pos6) plans to splurge $200M+ on an original sci-fi flick (“The Electric State”). The Chris Pratt and Millie Bobby Brown movie could spawn more games, shows, and merch.

11 minutes of ads (Matt Winkelmeyer/Getty Images)

Play

__The biggest test is still ahead…__ So far, Netflix has rolled out its password crackdown only in a handful of countries, including Spain and Canada — but complaints are already flooding in. Still, the end of mooching could mean more ad-tier subs. Netflix hopes that if users are price-sensitive enough to “share” accounts with an ex, they might be willing to shell out $7 for ad-Flix. Especially if there are more reasons to tune in.

As Netflix’s ad tier hits 1M subs, the streamer bets on games and blockbusters to lure fresh eyes

__Arrived 20 minutes before takeoff…__ didn’t even fly private. Semi-private flights (think: 15 to 30 passengers) have gained traction since the pandemic began, as germ fears led some travelers to seek out less crowded options. These flights aren’t regulated by the TSA and typically depart from private terminals, so security is much quicker. 

- __While these semi-private perks sound pricey,__ some companies are offering them for prices comparable to first class or even economy.

- __For example,__ __JSX__ offers a round trip from Los Angeles to Vegas for under $200. Or an Austin-Dallas roundtrip for $170. Luxury rivals like __Aero__, __Tradewind__, and __Set Jet__ are more comparable to first-class prices.

- __Sweeteners:__ JSX passengers can valet their cars at the airport and hop on a 30-seat jet (with their pet) just 20 minutes before takeoff. JSX says it’s the first air carrier to roll out in-flight WiFi from __SpaceX’s__ Starlink satellites.

- __Downsides:__ These companies have a limited number of routes (nothing near commercial airlines). And they’re typically pricier than a regular flight. 

__Not too hot, not too cold…__ Most folks can’t afford a first-class ticket, much less a private plane. But most people *also* hate being sandwiched in the middle seat in economy and would rather skip long TSA lines. Travelers are also tired of thousands of cancellations and delays from major airlines. Semi-private flights offer a Goldilocks option between flying private and flying commercial.

Private

__“Too good to be true” is hard to maintain…__ There’s a reason airlines squeeze us in like sardines: $$. Planes are expensive to fly and maintain, and 30-person flights at commercial prices don’t seem like sustainable moneymakers. To expand its routes, JSX said it’s going to add a new aircraft to its fleet every six weeks. These companies are cruising in growth mode, but they might have to lift prices to lengthen their runway.

Semi-private-flight companies like JSX take off as passengers seek a “Goldilocks option”

🛣️ *Like an elevated highway built over a cobblestoned road…*

Layer-1 blockchains like __[ethereum](https://robinhood.com/crypto/ETH/)__ and __[bitcoin](https://robinhood.com/crypto/BTC/)__ have gotten flak for slow transactions and high fees. __Layer-2__ networks are designed to be faster and cheaper: they let users make crypto transactions *outside* the main chains, batch them up, and then report them back to L1s. __Arbitrum__, a leading ethereum L2, is set to [launch](https://www.coindesk.com/tech/2023/03/16/arbitrum-to-airdrop-new-token-and-transition-to-dao/) a hotly anticipated token tomorrow that’ll give holders the ability to vote on changes to its network.

Heard on the Block: "layer 2"

As Netflix’s ad tier hits 1M subs, it bets on games and blockbusters to lure fresh eyes

While 5.9M Americans quit or lost a job in January, 6.4M got hired

🍿 Netflix’s (ad)option

__Failure to launch…__ Sir Richard Branson’s __[Virgin Orbit](https://robinhood.com/stocks/SPCE/)__ could be on the brink of bankruptcy. Last week the satellite-launching startup paused operations and reportedly furloughed most of its staff. Yesterday, CNBC [reported](https://www.cnbc.com/2023/03/20/virgin-orbit-looming-bankruptcy-deal-talks.html) that Branson’s baby was scrambling to raise cash. If Virgin Orbit fails to secure a funding lifeline or a buyer, it could file for bankruptcy as soon as this week. If dollars are rocket fuel, Virgin Orbit is burning it fast. 

- __Boeing up:__ Virgin Orbit (which was spun out from space-tourism company __Virgin Galactic__) developed a new system to launch satellites by dropping rockets from the wings of Boeing 747 jets.
- __Major L:__ In January, Virgin Orbit was poised to send the first satellites into orbit from UK soil. But the historic mission flopped after its rocket failed to reach orbit, which led to the destruction of nine small satellites for governments. 
- __Descent:__ Virgin Orbit stock has plunged nearly 75% this year following the failed launch, and it lost $140M from January to September of last year.

__To infinity, and Elon…__ The satellite industry has mostly been dominated by huge missions to launch huge satellites for huge companies, but startups like __SpaceX__ and Virgin Orbit have found a niche: launching smaller satellites for smaller customers at lower orbits. SpaceX's Starlink satellite-internet biz has launched ~4K satellites to date and has 1M subscribers (think: residential WiFi). Now SpaceX is [gearing up](https://www.engadget.com/spacex-is-getting-ready-to-test-its-starlink-satellite-to-cell-phone-service-181810564.html) to test Starlink satellite-to-cell phone service, which Musk had said would be available on T-Mobile phones this year. Meanwhile, __[Amazon](https://robinhood.com/stocks/AMZN/)__ just [revealed](https://www.theverge.com/2023/3/14/23639450/amazon-project-kuiper-satellite-dish-internet) “Project Kuiper,” its forthcoming low-cost satellite-internet dishes. 

Boeing, Boeing, gone? (Hugh Hastings/Getty Images)

Flop

__A big L can be the nail in a small coffin…__ In the increasingly competitive small-launch market, there may be room for only a few providers, which means that even one high-profile mishap could mean game over. While Virgin Orbit had four successful launches before its failed UK launch, the high-profile flop may’ve been a final blow. 

Virgin Orbit flirts with bankruptcy as SpaceX and Amazon double down on satellites

__Meeting up for an early tee time…__ at 2 on a Wednesday afternoon. Pandemic-born remote work has reshaped the modern office (#hotdesking), but it's also [reshuffled](https://www.nytimes.com/2023/03/16/business/afternoon-fun-economy.html) *non*-office life. The flexibility has created a "whenever economy." Remote workers are taking advantage of their schedules to shop or work out when they'd have typically been at a downtown desk. Now they're working *different* hours (picture: afternoon golf games, late-evening emails). For some industries, that's been a boon:

- __Printing greens:__ A study of 3.4K+ golf courses saw a nearly 4X jump from 2019 to 2022 in Wednesday-afternoon games. Researchers' best guess: WFH golf breaks.
- __Midday blowout:__ According to __ClassPass__, last year the most popular time for salon or spa visits was noon. Before the pandemic, it was around dinner time. 
- __Office-chair pose:__ Yoga studios and rock-climbing gyms are seeing sustained midday business as remote workers downward-dog and scale walls between Zoom calls. 

__Slack pings to an empty desk…__ As big names like __Amazon__, __[Salesforce](https://robinhood.com/stocks/CRM/)__, and __[Meta](https://robinhood.com/stocks/META/)__ require (or “strongly encourage”) in-person office work, they may end up looking like loud outliers. A recent survey of 1.1K corporate execs found that only 3% plan to cut down remote options, while 5% said they'll *expand* them. Many prospective employees are on board: remote opportunities recently attracted a majority of LinkedIn applications, despite making up only 13% of job listings. 

Hooked

__The 9-to-5 is losing its hold…__ Say hello to the 9-to-whenever-it's-done. An overlooked detail of the whenever economy: workers aren't necessarily working *less*. A three-hour lunch break might mean a post-dinner spreadsheet sesh. That flexibility may be hard to relinquish, both for employees lovin' afternoon golf and for employers expecting late-night email replies. 

Businesses embrace the “whenever economy” as remote work powers midday golfing

Men's college basketball players are already earning twice as much as their female counterparts

🛰️ Virgin’s anti-Orbit

__Banking’s no good, very bad week…__ Global bank stocks were on a roller coaster last week after the collapse of __Silicon Valley Bank__, which serviced about half of America’s venture-backed tech companies. A [high-level recap](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/) of the second-largest bank failure in US history: when interest rates were ultralow, SVB invested most of its deposits into US Treasury bonds with long durations (think: 10+ years) to earn slightly higher interest. But when interest rates soared, the value of SVB’s old bonds plunged by $15B and its tight-knit VC customers all tried to pull their money out at once (spoiler: it couldn’t meet their requests). 

__Not-so-balanced sheets…__ Swiftly rising interest rates have led to two main problems for banks that failed to properly factor in this risk: (1) the value of their assets (think: bonds, loans, investments) fell as rates rose, and (2) customers withdrew more idle cash from their accounts in favor of higher-interest investments. After SVB’s fall, regional banks’ financial stability has come under scrutiny as traders and depositors look to identify banks with similar balance-sheet risks. Think: a high rate of uninsured deposits (accounts over the FDIC-insured $250K) and bonds with a long time to maturity. __First Republic__ had the third-[highest](https://www.insiderintelligence.com/content/first-republic-bank-stays-afloat-digitally-fueled-fear-rocks-banking-industry) rate of uninsured deposits among US banks, after SVB and __Signature Bank__. Now it’s in the spotlight. 

- __Initially:__ After the collapse of SVB and Signature, regulators announced an emergency backstop to ensure that depositors at both banks had access to all their funds. But…
- __Monday:__ First Republic stock sank a record 60%+, even after assuring depositors that it had $70B in liquidity thanks to backing from __JPMorgan__ and the Fed.
- __Thursday:__ 11 big banks pledged to inject $30B into First Republic, boosting the stock. But by Friday the rebound lost steam, with First Republic shares falling another 33%. 
- __Meanwhile:__ __Credit Suisse__ secured a $54B lifeline from the Swiss National Bank, and on Sunday UBS agreed to buy its struggling rival for $3.2B. 

__Panic can be a self-fulfilling prophecy…__ which is why governments are taking extraordinary measures to contain the damage. Treasury Secretary Janet Yellen said the US banking system “remains sound,” and President Biden pledged to do “whatever needed” to ensure America's banking-system confidence. Last week 68% of US consumers said they still had a fair amount of confidence in banks. Still, Yellen [said](https://www.cnbc.com/2023/03/16/svb-signature-bank-failures-yellen-says-us-banking-system-is-stable-and-deposits-remain-safe.html) that the government would not refund uninsured deposits for every single bank that fails (only those that would pose a systemic risk if they failed). Most Americans don’t have over $250K in individual bank accounts anyway, but many companies do. 

Banking jitters spread (Nancy Lane/Getty Images)

Edge

__It could go a few ways…__ US banks were sitting on $620B in unrealized losses (think: assets that’ve lost value but haven’t been sold) at the end of 2022. If people identify more poor risk management at small banks, it could lead to cratering trust in regional banking or more regulation for smaller banks. “Too big to fail” banks (like: __JPMorgan Chase__, __Bank of America__, and __Citi__) are already seeing spikes in new deposits. The crisis could also compel the Fed to cool on rate hikes.

Regional bank stocks plunge as regulators (and big banks) rush to limit contagion

__J. Pow needs an herbal tea…__ Between bank collapses and new inflation data, a lot’s happened recently that could influence the Fed’s important rate-hike decision this Wednesday. Some investors expect the banking crisis could pressure the Fed to cool on rate hikes (which contributed to banking woes). Most traders predict a hike of 25 basis points, down from 50 last week. Some firms even expect Powell will pause hikes (#Pow-se). While inflation isn’t cooling as fast as the Fed hoped, __Goldman Sachs__ said it no longer expects a hike on Wednesday.

__China's tech scene checks in…__ WeChat owner __Tencent__ (also the world’s biggest gaming company) and ecomm giant __Pinduoduo__ are set to report. The tech titans’ earnings come as China’s economy reopens after years of strict Covid policy. Meanwhile, China's tech world could be on the verge of an AI-powered shakeup. Both Tencent and __Alibaba Group__ (the __Amazon__ of China) are reportedly working on ChatGPT rivals. Meanwhile, __Baidu__ (the __Google__ of China) disappointed investors last week with its AI-chatbot demo. 

__Affordable EV race…__ __Volkswagen__ plans to [spend](https://www.cnbc.com/2023/03/14/volkswagen-announces-five-year-193-billion-investment-plan-as-electrification-gathers-pace.html) $126B+ on "electrification and digitization" as it pushes to grow its EV market share. The German auto powerhouse rolled out its design for a $26K EV set for release in 2025. The race toward less pricey EVs reflects growing competition for electric market share. __Tesla__ has slashed prices several times this year and said it'll cut future EV production costs by half. Tesla risks getting passed, and not just by Volkswagen: Chinese startup __XPeng__ launched two EVs in Europe that are priced below Teslas. 

Zoom out

- __[TikBan](https://snacks.robinhood.com/newsletters/20cy8V96PfEU6UKh8gt8ZF/articles/4aHj2SGTicN7e8FGVMqGwi/):__ Biden threatened to ban __TikTok__ in the US unless it separates itself from its Chinese parent, __ByteDance__. Meta, Snap, and Google shares surged on the potential demise of their social rival. 
- __[Metout](https://snacks.robinhood.com/newsletters/2ks7eKM2OFTCzODpqYx8b6/articles/4nayOBAZ6zxuYmVl2qAuyb/):__ __Meta__ is ending its ambitious NFT push just as digital collectibles start regaining relevance. It’s the latest example of Meta’s bad trend timing, which includes its massive metaverse investment. 
- __[Resort](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/):__ Within the span of a month, Silicon Valley Bank went from hosting a summit at a fancy ski resort to reaching out to lenders of last resort. Check out our recap of the bank’s swift demise. 

The odds of a perfect March Madness bracket are 1 in 9.2 quintillion

🏦 Banking jitters

__That escalated quickly…__ The __TikTok__-ban saga, which just a few months ago seemed to have been forgotten in a dusty corner, has intensified big-time. Earlier this month, President Biden supported [a bill](https://snacks.robinhood.com/newsletters/6wxiLf0iRxZlUulU1qvIH6/articles/4Vm354Syx1blY16GEISm4a/) that would give him the power to ban (or force a sale of) TikTok in the US. POTUS urged Congress to pass the bill because of national-security concerns. This week: 

- __Biden time:__ TikTok said that the Biden admin threatened to ban it in the US unless the popular app [separates](https://thehill.com/policy/technology/3902609-biden-administration-threatens-to-ban-tiktok-if-chinese-parent-company-doesnt-sell-stakes/) itself from its Chinese parent, __ByteDance__.

- __For You rage:__ Biden demanded that ByteDance agree to spin off TikTok. While ByteDance owns other apps — including Douyin, the Chinese (censored) version of TikTok — losing TikTok and its 100M American users would be a massive blow.

- __Endless scroll:__ Americans spend, on average, nearly an hour a day on TikTok — more than on either Facebook or Instagram. 

__Interesting timing…__ It may not be a coincidence that Biden threatened a Tik ban within a day of the Chinese government announcing an [overhaul](https://www.wsj.com/articles/chinas-communist-party-overhaul-deepens-control-over-finance-technology-6acdd43c) to strengthen its control over its tech sector. China’s Communist Party set up a new bureau to [mine data](https://www.technologyreview.com/2023/03/15/1069814/china-new-bureau-data-economiy/) for economic growth, and established a central technology commission to boost the party’s oversight of the sector. Chinese President Xi Jinping also [encouraged](https://www.cnn.com/2023/03/07/economy/china-two-sessions-xi-jinping-speech-us-challenges-intl-hnk/index.html) the country’s private companies to “fight” alongside the Communist Party. The US is worried TikTok could share American data with China.

The clock’s ticking (Olivier Douliery/Getty Images)

__Bad news for one is great news for some…__ __[Meta](https://robinhood.com/stocks/META/)__, __[Snap](https://robinhood.com/stocks/SNAP/)__, and __[Google](https://robinhood.com/stocks/GOOGL/)__ stock surged after reports of an increasingly likely TikTok ban. The disappearance of TikTok in the US would be a dream come true for Instagram, Snap, and YouTube. Despite their efforts to replicate TikTok’s success (think: Instagram Reels, Snap Spotlight, YouTube Shorts), they’re still losing engagement (and advertiser $$) to Gen Z mega favorite TikTok.

Biden threatens to ban TikTok unless it separates from its Chinese parent (and US social stocks pop)

__A glass from the past…__ returns to the dustbin of history. __Google__ said it would stop selling its [Glass Enterprise](https://snacks.robinhood.com/newsletters/2ta13i6miTQPNcfww0jH8g/articles/5LQAdAg1EQ5RERapBHMKUe/) smart glasses. The $1K camera-equipped lab-goggle-looking wearables were marketed for industrial use (picture: warehouse workers scanning crates with their faces) and were an evolution of 2013's much-hyped Google Glass. Google stopped selling the first (consumer-focused) version of Glass two years after its debut after it elicited immediate pushback — both on privacy *and* style grounds. 

- __Google pass:__ Glass was called antisocial and "too dorky to succeed" by the tech-forward Wired magazine.

- __Ogle glass:__ Concerns that Glass would be used surreptitiously to record patrons led several bars to ban the devices. 

__Face computers lose face…__ Google isn't the only biz to struggle with making smart glasses shine. In 2016 __Snap__ released $130 video-recording Spectacles, but apparently overestimated demand to the tune of $40M in losses. In 2021, __Meta__ [launched](https://snacks.robinhood.com/newsletters/IoFpxzaCMWYIRwnWz8IHa/articles/6aRpVMxqEwEvfe2Crkv3qp/) its $300 Ray-Ban Stories for video recording and sharing, but despite the fashion-forward frame, they seem to have failed to catch on. __[Apple](https://robinhood.com/stocks/AAPL/)__, one biz that could allay style and privacy objections, keeps delaying its rumored Apple Glasses. Meanwhile, VR headset sales fell last year, and Meta slashed the price of its Quest Pro just months after launch.

Look

__The higher the bar, the higher the value prop…__ and smart glasses have a high barrier to adoption without a high value prop. Getting a pricey tech product on a customer's face — vs. tucked inside a pocket — is a big ask. Unless wearable makers can demonstrate a compelling practical benefit, smart glasses might forever stay in their cases.

Google stops selling its smart glasses as face wearables struggle to gain traction 

📸 __Flashy…__ US and European law enforcement [shuttered](https://www.wsj.com/articles/chipmixer-is-shut-down-for-allegedly-laundering-3-billion-in-crypto-325a55ee) __ChipMixer__, a “crypto mixer” that lets people commingle funds to boost anonymity. Authorities said it was used by criminals, including North Korean hackers, to launder $3B+ in crypto. 

🤖 __Techy…__ The Fed said its instant-payments service, FedNow, will [go live](https://finance.yahoo.com/news/federal-reserve-to-launch-instant-payment-service-fednow-in-july-210022218.html) in July. The system could overhaul how Americans move money each day. Think: not having to wait for checks to clear could cut demand for payday loans. 

🪙 __Coins…__ __[Fidelity](https://robinhood.com/stocks/FNF/)__ quietly [opened](https://www.theblock.co/post/220298/fidelity-crypto-quietly-went-live-giving-millions-of-retail-customers-access-to-bitcoin-ether) its crypto service up to millions of retail customers, with __[bitcoin](https://robinhood.com/crypto/BTC/)__ and __[ether](https://robinhood.com/crypto/ETH/)__ available to trade. The timing suggests Fidelity isn’t dissuaded by crypto winter and increased regulatory scrutiny.

UNMIX

The Crypto Catch-Up…

Biden threatens to ban TikTok unless it separates from its Chinese parent

Lucille Ball was the first woman to own and run a major TV production company

🚫 Biden’s Tik-ban plan

__Blinked and missed it…__ This week __[Meta](https://robinhood.com/stocks/META/)__ quietly announced an end to its nonfungible-token platform (#sadtrombone). The [exit](https://www.barrons.com/articles/meta-nft-crypto-bitcoin-non-fungible-tokens-facebook-instagram-zuckerberg-7a4b56c5) followed grand ambitions: Meta launched NFTs on Facebook and Instagram last year in 100 countries, targeting adoption among its billions of users. It reportedly considered monetizing NFTs and said creators could mint tokens on __polygon__ and sell them to fans. Now Meta's looking to lean down as it focuses on “efficiency”:

- __Pink-slipped:__ On Tuesday, CEO Zuck said he planned to lay off 10K more employees after slashing 11K in November. 
- __Meta-hearse:__ Meta's Reality Labs division, which houses its metaverse projects, lost nearly $14B last year and is expected to lose *$16B* this year. 

__Nonfungible growin’…__ Meta may be ditching NFTs, but they're having a low-key moment. Though NFT trading volume has plunged from early 2022 highs, it jumped nearly 40% to $946M from December to January and hit $2B last month. Brands have found an NFT audience by tying tokens to pop-culture faves (like: HBO's "Game of Thrones" [collectables](https://snacks.robinhood.com/newsletters/6v5OnIrayfa5vXLtAWhJy1/articles/6YW2jKhtl22U6VpDi9vBi3/) and __[Starbucks](https://robinhood.com/stocks/SBUX/)’__ "journey stamps"). __[Amazon](https://robinhood.com/stocks/AMZN/)__ reportedly plans to launch a fashion-focused NFT marketplace next month. Meanwhile, [ordinals](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/6h6QfaEiiWIYYTVHHiqAf/) birthed a new NFT market on the bitcoin blockchain. 

Unfortunate timing (Drew Angerer/Getty Images)

NFTrend

__Timing is everything…__ Meta announced its NFT push right as the algo stablecoin TerraUSD collapsed — kicking off crypto winter — and is now walking away as NFTs could be regaining relevance. It's not the first time Meta's missed the trend boat: its metaverse transformation kicked off as spenders shifted to prioritizing IRL [experiences](https://snacks.robinhood.com/newsletters/7Eii6CUWY0BFV8UUv3TpJD/articles/6HBcxIs3mE0INLHalLT7zn/), while recession fears made big bets like the metaverse even riskier investments. Recently, Meta announced its ChatGPT rival. Brands that miss trend timelines risk becoming leading indicators of trend death.

Meta ends its NFT push, in the latest example of bad trend timing (metaverse included)

__Blooming estates…__ __[Lennar](https://robinhood.com/stocks/LEN/)__, the US’s second-largest homebuilder, posted expectation-beating quarterly growth this week, even as debt-fatigued Americans cool on home buying. Lennar’s revenue and profit both grew, while home deliveries rose 9%. Lennar’s CEO said the beat was partly thanks to buyers accepting higher mortgage rates as “the new normal.” Still…

- __Small nails:__ Lennar’s new-home orders dipped 10% from last year, and the average price of its new-home sales dropped to $452K from $495K.
- __Big hammer:__ Mortgage rates fell this week after the bank collapses, but are still 2X higher than in 2020. And in February, US home sales fell for the 12th straight month.
- __Hard wall:__ Still, lofty house prices have stuck as supply remains low. Case in point: housing costs drove *70*%+ of consumer inflation last month.

__3BDRs + patio…__ break out the bidding paddles. Mid-pandemic, houses were built at the fastest pace in a decade as more Americans took advantage of low interest rates and fled to the ’burbs. But rates have surged, making homeownership unaffordable for even high earners. Meanwhile, current homeowners locked into lower rates are staying put and listing less, exacerbating the supply problem. 

Bloom

__The housing bud may start blooming…__ Homebuilder confidence rose for the third straight month in March as rates started to cool. That could set up the housing market for a warm spring (the season when most US home sales happen). Next week is crucial: if the Fed cools or pauses rate hikes, it could be a green light for more buyers to hit the market. 

Lennar’s sturdy earnings are a window into the housing market ahead of a key spring season

Meta ends its ambitious NFT push, in the latest example of bad trend timing

Campbell Soup’s Goldfish crackers are on track for $1B in annual sales

⌛ Meta's mistimed NFTs

__J. Powell may need an energy drink…__ or some chamomile. It’s only Wednesday, but it already feels like *next* Wednesday. A lot’s happened in the past week that could influence the Fed’s rate-hike decision on March 22. Three banks [collapsed](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/) (including the second-biggest bank failure in US history) and the February inflation report came out yesterday. 

- __Top line:__ The pace of inflation cooled for the eighth straight month (good), but it’s not slowing as fast as the Fed would like (not so good).

- __No surprises:__ US consumer prices were up 0.4% for the month and 6% for the year, as expected. Energy dropped, but housing costs soared.

- __Reaction:__ Stocks popped after the release, and traders priced in an 85% chance that the Fed will hike rates by 25 basis points (down from 50 last week).

__Seeing the vault half full…__ __[Silvergate](https://robinhood.com/stocks/SI/)__, __Silicon Valley Bank__, and __[Signature Bank](https://robinhood.com/stocks/SBNY/)__ all collapsed this month. US regulators swooped in with extraordinary measures to guarantee that depositors at SVB and Signature would have access to their funds. Three bank failures in one week may not seem amazing from an economic perspective, but some investors [think](https://markets.businessinsider.com/news/stocks/why-silicon-valley-bank-collapse-good-for-stock-market-rates-2023-3) it could actually be *bullish* for markets. 

- __Bull case:__ Some now expect that bank failures will pressure the Fed to cool on rate hikes. Some Wall Street firms are even predicting that Powell will *pause* hikes (#Pow-se). __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ said it no longer expects any hike on March 22 “in light of recent stress in the banking system.”

Considering a Pow-se? (Liu Jie/Getty Images)

Hike

__Panic could force the Fed’s hand…__ to cool its hiking crusade. The Biden admin and US regulators seem willing to do just about anything to prevent a banking crisis. And while the Fed wants to temper sticky inflation and the hot labor market, it *really* wants to avoid a crisis. The aggressive interest-rate environment contributed to bank failures and has been one of the main causes of the stock market’s woes.

Bank failures and slowing inflation could lead the Fed to cool (or even pause) rate hikes

__The Prop 22 saga…__ could be reaching its finale. On Monday, a California court [ruled](https://www.cnbc.com/2023/03/13/uber-lyft-shares-rise-after-california-court-upholds-prop-22.html) that gig companies *can* continue to treat their drivers as independent contractors instead of employees under Prop 22. Refresher: in 2021, a CA judge ruled that Prop 22 was unconstitutional and unenforceable, even after CA voters [passed](https://snacks.robinhood.com/newsletters/16eEsik1Fk53zullntgMTm/articles/1p7Zbl78TlS0t7oJltTCT0/) the bill. This new decision reverses that.

- __[Uber](https://robinhood.com/stocks/UBER/)__, __[Lyft](https://robinhood.com/stocks/LYFT/)__, and __[DoorDash](https://robinhood.com/stocks/DASH/)__ shares jumped on the gig-friendly news yesterday, despite the court’s additional ruling that gig companies can’t prevent drivers from joining unions and bargaining for better conditions.

__Uber by day…__ __DoorDash__ by moonlight. Workers are increasingly joining the gig economy to earn extra $$. Estimates [vary](https://www.bloomberg.com/news/articles/2023-03-06/millions-more-us-workers-possibly-self-employed-than-thought), but at least a tenth of the US workforce is made up of gig workers, and analysts predict hundreds of thousands more will join as inflation continues. Meanwhile, Europe [expects](https://www.reuters.com/markets/europe/eu-lawmakers-agree-tougher-draft-gig-labour-rules-2022-12-12/) its 28M gig workers to nearly double by 2025.

- __The gig model__ lets people work flexible hours and drive for several companies, but doesn’t offer full-time benefits (think: healthcare and PTO).

- __As the most populous US state__, CA is a critical market for gig companies, and its latest ruling could influence gig law across the country and abroad.

Surge

__The big gig debate isn’t over…__ Critics still don’t think Prop 22 provides critical labor protections (like: minimum wage, overtime, and health insurance). Now, many expect that the Service Employees International Union will appeal the ruling to the California Supreme Court. Meanwhile, EU lawmakers are drafting strict new gig-labor laws, which could go into effect next year.

Uber and Lyft spike on California’s Prop 22 win, but the big gig debate isn’t over yet

🤝 *Like a banking superapp… without the bank*

Decentralized finance, aka __DeFi__, describes peer-to-peer financial services done on the blockchain through smart contracts. Think: borrowing or lending crypto, earning interest, or trading digital assets like NFTs, all without the involvement of a third party like a bank or crypto exchange. This week, the __Euler Finance__ [DeFi protocol](https://www.bloomberg.com/news/articles/2023-03-13/defi-s-euler-finance-hit-by-197-million-hack-experts-say) lost $197M worth of crypto in a flash loan attack.

Heard on the Block: "DeFi"

For the first time since 1987, more vinyl records were sold last year in the US than CDs

🤔 The Fed post-SVB

__From ski resort to last resort…__ Earlier this month __Silicon Valley Bank__ hosted a “snow summit” for tech CFOs at the Deer Valley ski resort in Utah. Last week, SVB tried to borrow from the Fed — a lender of last resort — to avoid collapsing (spoiler: it still collapsed). Here’s a high-level recap of the second-largest bank failure in US history: 

- __Who:__ Silicon Valley Bank was the go-to for tech startups, servicing about half of America’s venture-backed tech companies. 
- __Rise:__ SVB was flooded with deposits in 2021 as startups easily raised venture cash in an extra-low-interest-rate environment, parking their funds at SVB. 
- __Problem:__ Banks largely make $$ by making loans, but SVB’s clients were already flush with cash. Plus, interest rates on loans (especially short term) were super low. 
- __“Solution”:__ To earn a slightly higher interest rate on its loans, SVB invested most of its deposits into US Treasury bonds with long durations (think: 10+ years). 
- __Risk:__ If interest rates soared, the value of SVB’s bond portfolio would plunge (because its old bonds would be paying out at lower interest rates). 
- __Result:__ Interest rates did in fact soar. The market value of SVB’s bonds plummeted by $15B (and its savvy customers paid attention). 
- __Re-tweet:__ SVB’s close-knit clients chatted and pulled their cash out at the same time (on Thursday alone, they tried to withdraw $42B — a quarter of SVB’s total deposits).
- __Reckoning:__ SVB ultimately couldn’t meet withdrawal requests, the FDIC took control and declared it insolvent, and panic ensued (__[Signature Bank](https://robinhood.com/stocks/SBNY/)__ also failed). 

__Pulling out all the (back)stops…__ To avoid more bank runs, regulators announced an emergency backstop to ensure that all depositors at both failed banks would have access to all their funds (as of yesterday). The Fed is also creating a “Bank Term Funding Program” to offer loans to financial institutions who present high-quality securities (think: Treasurys) as collateral — instead of having to fire-sell securities during times of stress.

- __The FDIC__ guarantees customer deposits of up to $250K at every insured bank, but most of SVB’s and Signature Bank’s deposits were *un*insured (think: tech companies with way more than $250K). Still, the FDIC said it would make *all* depositors at these two banks whole, regardless of account size. 

Silicon Valley blues (Justin Sullivan/Getty Images)

Resort

__Panic can be a self-fulfilling prophecy…__ which is why the government is taking extraordinary measures to contain the damage. The three banks that failed this month (including Silvergate) had an unusually high concentration of deposits from tech and crypto companies. Regular folks weren’t likely to have accounts there, and regular folks are *also* less likely to have uninsured deposits (aka: $250K+ in one account). Still, if companies are at risk of losing millions in deposits, then people are at risk of losing paychecks — and damage control could continue to be key to containing further contagion. 

US regulators rush to limit banking contagion after Silicon Valley Bank’s collapse

__Cutting it close…__ Crypto had a weekend it'd rather forget. __Circle__, the biz behind __USDC__ (the second-largest [stablecoin](https://snacks.robinhood.com/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/)), said on Friday that $3.3B of the stablecoin's US-dollar reserves were in the failed __Silicon Valley Bank__ — which regulators had taken over earlier that day. With the future of SVB's deposits in doubt, crypto investors worried that USDC might no longer be fully reserved (aka: backed one to one with US dollars). 

- __The drop:__ USDC, which was designed to always = $1, depegged over the weekend. The stablecoin fell to as low as 87 cents. 
- __The climb:__ Circle said it'd "cover any shortfall," and on Sunday the gov’t said all SVB depositors would be made whole. Yesterday USDC regained its $1 peg. 

__Have crypto, will travel…__ While SVB's collapse sent shockwaves through crypto, it wasn't the first crypto-friendly bank to run into trouble. Last week crypto [mega bank](https://snacks.robinhood.com/newsletters/1N6EVPNiFMVnsRFMeZq1Si/articles/7mcLpvg5uE1w1Dg08UBtdR/) __[Silvergate](https://robinhood.com/stocks/SI/)__ said it'd shut down after a surge in post-__FTX__ withdrawals. And on Sunday regulators moved to close New York's __Signature Bank__ (over a fourth of its deposits were from crypto companies like __[Coinbase](https://robinhood.com/stocks/COIN/)__ and __Paxos__). Now, with three big crypto banking players off the board, the industry’s [scrambling](https://www.bloomberg.com/news/articles/2023-03-13/crypto-scours-the-globe-for-banks-to-replace-collapsed-us-lenders) to find alts.

CHAIN

__Crypto can't shake TradFi's grip…__ Circle's rough weekend is a reminder that crypto's fortunes remain tied to traditional finance (aka: TradFi). It wasn't just the stablecoin heavyweight that was forced to face this reality: bankrupt crypto lender __BlockFi__ and __Ripple Labs__ — the biz associated with the $19B __XRP__ token — both had exposure to SVB. Still, some crypto fans see the recent bank failures as an argument *for* digital assets. Think: self-custodied crypto vs. bank-custodied dollars.

SVB's implosion depegged the second-largest stablecoin, highlighting crypto's dependence on traditional banking

As home prices soar, 3M US households making $150K+/year are still renting