Digital currency trading firm Genesis Global filed for bankruptcy on Jan 20, 2023, citing ‘adverse market conditions’.They are likely to complete their bankruptcy by this year May 19.This filing only applies to certain branches of the company and its Global trading and spot and derivatives trading arms are still operational and unaffected.This news has created a stir in the market and the next hearing is on Jan 23.Background on Genesis Global Trading Bankruptcy Filing Genesis Global Trading is a digital currency trading firm that was founded in 2013.It grew as a reputed OTC (Over-the-counter) trading firm in the crypto market.On Jan 20, it filed for chapter 11 bankruptcy which causes a stir in the crypto industry.The company is likely to liquidate its assets to pay off the creditors.
Digital Currency Group Denies Involvement Digital Currency Group (DCG) is a venture capital firm founded by Barry Silbert and has invested in a number of crypto-related companies.The DCG is also the parent company of Genesis Global Trading.DCG responded to the bankruptcy filing stating that it has no involvement in the filing and the decision was made independently by the Genesis management team.In the statement, they further clarified that DCG still owes Genesis Capital a lot of money.
$526 million is due in May 2023 and another $1.1 billion is due in June 2032.DCG said they will help Genesis pay back its creditors very soon.DCG has also responded to the false accusations made by Gemini related to the Gemini Earn program.They said that the threat of a lawsuit by Gemini is another publicity stunt from Cameron Winklevoss to remove the blame from himself and Gemini.They have also stated that any suggestion of wrongdoing by DCG or any of its employees is baseless and completely false.DCG assured that they will continue to engage in constructive negotiations with Genesis and its creditors with the goal of arriving at a solution that works for all parties.
Stellar – One of the biggest creditors of Genesis The Stellar Development Foundation, which is one of Genesis’s biggest creditors, claimed almost $13 million from Genesis.However, the foundation stated that this amount is small compared to its overall assets.The Stellar treasury currently holds around 30 billion XLM tokens, which are worth over $200 million.Therefore, the foundation will not be affected by Genesis’s bankruptcy filing.Impact on the Crypto Market The bankruptcy filing of Genesis Global Trading has raised a number of questions about the stability of the crypto market.Some have pointed out that the filing is a sign that the market is still in its early stages and that there are still a lot of risks involved.
The hearing for this case is set to take place on January 23rd and it will be interesting to see how this plays out and what the ultimate impact on the crypto market will Was this writing helpful? No Yes Qadir AK Qadir Ak is the founder of Coinpedia.He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010.He has also interviewed a few prominent experts within the cryptocurrency space.Crypto news Elon Musk & Billy Markus Criticize SBF Following $700M Seizure In the early hours today, the US Federal prosecutors seized nearly $700 million in cash and assets which are in connection with FTX founder Sam Bankman-Fried.As per the reports most of these assets were in the form of Robinhood shares held by SBF.Earlier in May Sam Bankman-Fried had claimed to have acquired a 7.6% stake in Robinhood.
As per the court filings made on Jan 20, federal investigations in the Southern District of New York have taken hold of FTX’s assets.Also the US prosecutor mentioned 10 accounts which have shares, cash and cryptocurrency.
Federal Prosecutors Seize $700M From SBF Following the seizure of $700M from SBF, Dogecoin co-founder Billy Markus and Twitter head Elon Musk have taken this opportunity to criticize SBF and his stance.Billy Markus penned a sarcastic quote pointing towards SBF’s earlier claim where SBF had claimed to have left with only $100K.In reply to Billy Markus’ post, Elon Musk was quick enough to comment with two ROFL emojis.Since the time FTX went into bankruptcy, Elon Musk and Billy Markus have been condemning SBF for misleading investors.FTX filed its bankruptcy in November 2022 after SBF was charged with using USD that belonged to FTX customers.However, he pleaded not guilty to those charges and is currently under house arrest at his parents’ place.His next trial is scheduled for October, 2023.Earlier this week the federal prosecutors had seized $100 million from SBF’s Silvergate Bank which was linked to Bahamas FTX Digital Markets.
Was this writing helpful? No Yes Elena R Elena is an expert in technical analysis and risk management in cryptocurrency market.She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
Back to top button Crypto news Will Genesis Bankruptcy Spell Disaster for Grayscale’s GBTC and DCG? The cryptocurrency lending platform, Genesis Global Capital, which is owned and operated by Digital Currency Group, has filed for bankruptcy.This raises concerns about the potential impact on other companies and services provided by the parent company, as is commonly seen in such circumstances.What Happens to GBTC? One of the businesses in question is Grayscale Bitcoin Trust (GBTC), the crypto investment product created by Grayscale, a subsidiary of Digital Currency Group (DCG).In a public statement on January 20, DCG’s owner, Barry Silbert, emphasized that all of the company’s other subsidiaries, including Grayscale, are unaffected by Genesis Global Capital’s financial situation and that this will not change in any manner.Silbert went on to state that DCG will continue to conduct business as usual and that there will be no disruptions.However, the company owes Genesis roughly $526 million, which is due in May 2023, as well as $1.1 billion that is owed based on a promissory note that is due in June 2032.
Silbert also stated that DCG has every intention of meeting its commitments to Genesis even after the company undergoes restructuring.According to DCG, Genesis has its own independent management team, legal counsel, and financial consultants.DCG also formed a special committee of independent directors, who are in charge of the company’s reorganization, and who suggested and determined that it file for chapter 11 bankruptcy.The statement also clarified that “neither DCG nor any of its employees, including those who sit on the Genesis board of directors, were involved in the decision to file for bankruptcy.” Was this writing helpful? No Yes Elena R Elena is an expert in technical analysis and risk management in cryptocurrency market.She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.It looks like the crypto market is all set to enjoy a bullish weekend as the star cryptocurrency, Bitcoin has surpassed yet another important resistance of $22,000 area.
Ethereum is on a similar pace leading other top ten altcoins including BNB, XRP, Cardano and others.Among these altcoins, Cardano is considered to be among the top currencies that will enter the bullish momentum.
Cardano’s ADA attained its ATH in 2021 and since then the altcoin has not spiked that level.However, the Cardano network’s boosts of strong fundamental and development activity.Meanwhile, the experts claim that the upcoming updates of Cardano network will fuel ADA prices.As per the reports, the update is scheduled to take place on Feb 11 and is set to happen on test networks.
While immediately after three days, that is Feb 14 the next update will be introduced.Once the update is successful, the smart contract developers on Plutus will have multi-threshold signature designs.Charles Hoskinson : Token Burn Increase Market Volatility On the other hand, Cardano has a total supply of 45 billion ADA which is more than Bitcoin’s supply positioned at 21 million.Hence, the community is under discussion regarding token burn which will push ADA’s price rally.
This token burning is a method used to reduce the total supply of a particular currency so that it creates demand.This in turn will fuel the currency’s price action.
However, even though this method has helped many currencies, Cardano founder Charles Hoskinson has opposed token burning.This is because he believes this method doesn’t create any fundamental value to the network and also he views this method as manipulative.Moreover, Hoskinson claims token burn will bring down liquidity and increase market volatility impacting investors.Hence, the Cardano network mainly focuses on upgrading its technology rather than token burning which is a short term solution.
Was this writing helpful? No Yes Elena R Elena is an expert in technical analysis and risk management in cryptocurrency market.She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
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