1 year ago
Crypto markets saw minimal volatility implicit the past 24 hours contempt Digital Currency Group (DCG) subsidiary institution Genesis Global Capital filing for Chapter 11 bankruptcy connected Jan. 19.
Insolvency rumors were circulating arsenic aboriginal arsenic November 2022, erstwhile Gemini speech paused withdrawals from its Earn programme owed to Genesis, its lending partner, pausing withdrawals.
The consequent nationalist spat betwixt Gemini co-founder Tyler Winklevoss and DCG CEO Barry Silbert highlighted the liquidity issues astatine DCG and Genesis, including dubious intercompany transfers. Meanwhile, Cameron Winklevoss said:
“So however does DCG beryllium Genesis $1.675 cardinal if it didn’t get the money? Oh right, that promissory note…“
The nationalist backlash was mounting, with the FTX-Alameda concern caller successful everyone’s mind.
According to the bankruptcy filing, the apical 50 Genesis creditors are owed a full of $3.5 billion, with the astir important indebtedness owed to Gemini astatine $769 million. Other notable creditors see Van Eck, Abra, and Decentraland.
Crypto markets clasp steady
Despite the blow, crypto markets were seemingly unfazed by the events. Over the past 24 hours, the full marketplace headdress dipped to arsenic debased arsenic $962.17 cardinal connected Jan. 19.
However, determination were nary crisp sell-offs successful effect to the news. Instead, aft bottoming, the full marketplace headdress saw inflows that peaked astatine $984.96 cardinal successful the aboriginal hours of the pursuing day.
Source: CoinMarketCap.comMarket person Bitcoin grew 0.74% successful worth implicit the period. At the aforesaid time, the remainder of the ample caps recorded similar, level performances.
Genesis bankruptcy was priced in
Co-founder of crypto VC steadfast Placeholder Chris Burniske acknowledged a tweet from @Flowslikeosmo, stating the marketplace had priced successful the Genesis bankruptcy.
“Important to admit erstwhile marketplace starts shrugging disconnected atrocious news.”
Similarly, Investor Mike Alfred echoed these comments portion alluding to the months of anterior notice. However, referencing the big-name creditors and their creditors, Alfred warned of further occupation down the line.
“The Genesis bankruptcy was priced in. Everyone knew it was coming. Not that interesting. What’s absorbing is reasoning done the imaginable 2nd and 3rd bid sound connected effects that the marketplace doesn’t afloat admit yet.“
The station Crypto markets clasp dependable successful look of Genesis bankruptcy filing appeared archetypal connected CryptoSlate.
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