Crypto: Genesis on the brink?

In the crypto world, as soon as you see a company or business announce “we are temporarily stopping withdrawals” – whoops », says Daniel Roberts, editor at Decrypt Media. Stopping cryptocurrency withdrawals on any platform never bodes well. Even if, subsequently, its developers announce a quick return to normal. Genesis, the crypto exchange of the Winklevoss brothers, unfortunately paused withdrawals yesterday morning.

Genesis blows hot and cold with crypto traders

On Wednesday, November 16, Genesis Global Trading shared news that suggests all is wrong with them. Through a tweet, suffused with several comments, the crypto firm said its lending arm Genesis Global Capital will pause new loan originations and buyouts.

A message that has cryptocurrency investors freaking out

Our first priority is to serve our customers and preserve their assets. Therefore, in consultation with our professional financial advisors and lawyers, we have made the difficult decision to temporarily suspend redemptions and new lending in the lending industry. »

The cryptocurrency investment bank, however, clarified that in addition to the Earn program, its other services remain accessible to users.

CNBCwho had acting CEO Derar Islim, reported these comments:

Our cash and derivatives trading and custody businesses remain fully operational. »

Normally, such an action would not alarm investors. But a week after FTX collapsed, even the sweetest words won’t be able to dispel fears of contagion.

We recognize how difficult the past week has been due to the impact of the FTX news. At Genesis, we are fully focused on doing everything we can to serve our customers and navigate this challenging market environment.. »

FTX and its collateral damage

Sam Bankman-Fried and his greed didn’t just bring down FTX. Many other crypto companies were falling with them, to name Alameda Research, BlockFi, and more.

Even celebrities like Tom Brady and his ex-wife Gisele Bündchen, pro-cryptos bamboozled by SBF, lost over $600 million there. Apart from this colossal loss, they received a lawsuit brought by an FTX investor by the name of Edwin Garrison, points out CNN.

His lawyer Adam Moskowitz clarified that:

FTX [et sa bande] were PR and marketing geniuses, and knew that… [il] could only succeed with the help and promotion of the most popular, respected and loved celebrities and influencers in the world. »

The crypto-sphere is not the same after the Terra fiasco. Bear market, bankruptcy of many crypto companies like 3AC, Celsius, Voyager… followed this stampede. Now that FTX is bankrupt, others will soon file for bankruptcy. So is this the case with Genesis?

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts