Following Silicon Valley Bank's recent struggles, some venture capitalists and startups are interested in reinvesting in the institution. However, concerns have been raised about the stability of specialized banks and the VC ecosystem in Big Tech. This instability has also affected reputable institutions outside of the United States. While centralized finance has traditionally been crucial for liquidity providers and startups, recent banking collapses have highlighted the need for VCs to consider migrating to decentralized finance. It is important for companies to carefully weigh their options and not rely solely on the due diligence of other institutions. It is advisable to diversify investments across centralized and decentralized spaces, but it requires thorough research and understanding of the different sectors.
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