DANGER again cryptocurrency market enters the radar due to the unstable situation of the Genesis exchange
Hello dear and loyal readers, I take this opportunity to share with all of you a new scenario that is not favorable for the cryptocurrency market, I am referring specifically to what has been happening with the cryptocurrency platform Genesis seeking funds to avoid bankruptcy, a scenario that would certainly further affect the credibility of cryptocurrency exchanges.
What is certain is that the cryptocurrency platform Genesis is trying to obtain an injection of funds for its lending unit and thus avoid a possible bankruptcy following the recent collapse of FTX, another major player in this sector.
Genesis has been trying for days to raise at least $1 billion and is already warning potential investors that it may have to resort to bankruptcy if these efforts do not come to fruition, Bloomberg reported Tuesday citing unnamed sources.
Among others, the firm has been in talks with cryptocurrency exchange Binance, which has reportedly opted not to invest, and investment fund Apollo Global Management.
Last week, Genesis already temporarily suspended loan originations and repayments at its lending unit, Genesis Global Capital, and froze drawdowns due to a lack of liquidity exacerbated by the fall of FTX, by whose crisis it was directly affected.
Meanwhile, executives of companies in the sector have called for more regulation, transparency and governance during an online meeting organized on Tuesday by cryptocurrency exchange platform Bitstamp.
Genesis' difficulties have in turn affected cryptocurrency platform Gemini, which has halted exchanges of its Earn product. In a message via Twitter, the firm has said that it continues to work with Genesis and its parent, Digital Currency Group, to find a solution to these problems and has tried to reassure users, whom it has asked for patience to resolve the situation.
SOURCES CONSULTED
Bloomberg Crypto Brokerage Genesis Is Said to Warn of Bankruptcy Without Funding. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Taipeitimes.
In a time like this, I think we should just assume that all centralized exchanges are insolvent until proven otherwise!
Hi @qsyal
Correct this leaves evidence of insolvency that many exchanges may be involved in.
Best regards, be well.
I hear about it a lot and this is like another fud is on the way for further crypto amrket dump. I am feeling sad for the users who lost their fund and again this situation is going to harm the users. We have to learn lessons from these events. Thanks for the nice publication
Hi @luckyali
So we must educate ourselves with this type of outcome to decrease the probability of falling into these unfortunate situations.
Best regards, be well.
I love the purge we are experiencing. Every foul player in this space needs to good. When we have a real bull market, the reputable projects will soar.
Hello @joelagbo
I agree with you in the long run the more solid and reputable projects will succeed.
Best regards, be well.