Genesis is his latest victim

The spectacular chaos that is taking place with FTX not only affects what was the third cryptocurrency market in the world: entities that had a strong relationship with that entity are now in danger, and the latest protagonist is Genesis, another giant in this segment.

Playpen. FTX’s fall from grace caused a terrible domino effect. Genesis’ lending unit – called Genesis Global Capital – halted capital withdrawals. The firm, which focused on institutional clients, estimated that in the third quarter of 2022 it was handling $2.8 billion in total active loans. The firm revealed that it had 175 million locked up in a trading account at FTX.

Who is Sam Bankman-Fried, the FTX ideologue who has put the crypto industry at the feet of horses

we need 1 billion. The situation has caused this firm to try at all costs to get investors for a round in which it intends to raise 1,000 million dollars. He first tried to ask Binance for them, but the firm – which considered the purchase of FTX and then backed down – declined that request, stating that there was a potential conflict of interest. Changpeng Zhao, founder of Binance, is moving chips on his account.

Bankruptcy in the offing? The negotiations do not seem to materialize, and analysts are already talking about a potential bankruptcy in Genesis. One of his spokespersons explained to Bloomberg that “we have no plans to declare bankruptcy imminently.” The firm has also sought help from Apollo Global Management, an investment giant that, however, does not seem to be particularly interested in making a move.

The twins in trouble. FTX has done Easter (among others) to Genesis, and Genesis has done it in turn to Gemini, the cryptocurrency platform created by the Winklevoss twins, famous for the legal battle they had with Mark Zuckerberg for the creation of Facebook . Gemini also had to temporarily stop the possibility of making asset withdrawals after the FTX and Genesis situation, although they assured shortly after “all client funds” are available for withdrawal.

And while bitcoin keeps falling. This collapse of large entities in the crypto world is having a clear impact on the valuation of virtually all existing cryptocurrencies. Bitcoin is once again in a downward trend -like the others- and is struggling to break the barrier of $16,500.

We return to values ​​from two years ago, before the vertiginous rise of the crypto market began, which led to a new crypto fever and, of course, the NFTs that are trying to raise their heads and that despite their bad situation continue to generate a lot of expectation. : A Bored Ape NFT (pictured) recently sold for $1 million.

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