Genesis Files for Bankruptcy, Owes 50 Creditors $3.5 Billion, The Crypto Market Remains Unfazed
On January 19, Genesis Global Capital, a subsidiary of Digital Currency Group (DCG), filed for Chapter 11 bankruptcy, but failed to provoke an upset in the crypto markets, as prices remain fairly stable. Two months after halting withdrawals on Gemini Earn and failing to raise funds, Genesis has become the latest crypto company to file for bankruptcy. It calls the filing a “strategic [action] to maximize value for all clients.” According to the bankruptcy filing, Genesis has assets and liabilities in the range of $1 billion to $10 billion. The company says it owes an estimated 100,000 creditors. The top 50 creditors are owed a total of $3.5 billion. Gemini owes its lending partner the most significant debt, pegged at $769 million. Genesis owes two unnamed creditors $462.2 million and another $230 million. Other notable creditors include Van Eck, Abra, and Decentraland. However, despite the size of Genesis, crypto markets saw minimal volatility over the past 24 hours. The global crypto market cap remained at $977.9 billion as there were no sharp sell-offs in the market. The 7-day global crypto market cap. Source: CoinMarketCap A potential reason why the news has minimal impact on the market is that the bankruptcy was priced in the FTX collapse. Also, because of Genesis’ insolvency, rumors began circulating as early as November 2022 after the FTX incident. Thus, the bankruptcy filing did not come as a surprise, unlike FTX, which brought down the market. Many crypto investors would like to believe that the crypto market has bottomed out. Crypto analyst @DonCryptoDraper wrote on Twitter: Bottom is in when #Bitcoin doesnt dump on bad news like Genesis bankruptcy. While the crypto markets remain seemingly unfazed by the events, there is a possibility the Genesis bankruptcy could spark a contagion, as with FTX. Read about the impact of Genesis’ insolvency on Gemini in: More on Genesis’ struggles:Genesis Files for Bankruptcy
Why Isn’t the Crypto Market Phased By the News?
On the Flipside
Why You Should Care
Gemini Terminates Genesis Loans, Ends Crypto Yield Program
Genesis Bankruptcy Rumors Intensify as the Firm Lays Off 30% of Staff
Read more: https://dailycoin.com/genesis-files-bankruptcy-owes-50-creditors-3-5-billion/
Text source: DailyCoin.com
