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FTX collapse created a dangerous domino effect: Genesis is its latest victim 16 comments

The spectacular chaos with FTX is not only affecting the third cryptocurrency market in the world: assets with a strong relationship to this asset are now in jeopardy, and the latest hero is Genesis, another giant in this segment.

playground. FTX’s fall from favor had a terrible domino effect. Genesis’ lending unit – Genesis Global Capital – has ceased capital withdrawals. Focusing on corporate clients, the firm estimates it handled $2.8 billion in total active loans in the third quarter of 2022. The firm announced that it has 175 million locked in a trading account on FTX.

we need 1 billion. The situation prompted this firm to try at all costs for a round it plans to raise $1,000 million in. It first tried to request these from Binance, but the firm, which considered buying FTX and then backed down, rejected the request, citing a potential conflict of interest. Changpeng Zhao, the founder of Binance, moves the tokens on his own.

Is bankruptcy imminent? Negotiations don’t seem likely to happen, and analysts are already talking about a potential bankruptcy at Genesis. “We have no plans to declare bankruptcy anytime soon,” one of its spokespersons told Bloomberg. The firm also sought help from Apollo Global Management, an investment giant that wasn’t too interested in making a move.

Gemini in trouble. FTX did Easter (among others) to Genesis, and Genesis did it to Gemini, the cryptocurrency platform created by the Winklevoss twins famous for their legal battle with Mark Zuckerberg over the creation of Facebook. Gemini also had to temporarily suspend the possibility of withdrawing assets after the FTX and Genesis situation. they assured shortly after “all client funds” are ready to be withdrawn.

As Bitcoin continues to fall. This collapse of major assets in the crypto world has a clear impact on the valuation of almost all existing cryptocurrencies. Bitcoin, like many others, is once again bearish and struggling to break the $16,500 mark.

We go back to the values ​​two years ago before the dizzying rise of the crypto market started, which sparked a new crypto fever, and of course NFTs trying to raise their heads and continuing despite their plight are building up a lot of anticipation. : A Bored Ape NFT (pictured) recently sold for $1 million.

Source: Xataka

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