- Genesis at the verge of extinction.
- The creditors loan amount surpasses $1.8 Billion.
- Gemini alone accounts to have lent $900 million to Genesis.
The aftermath of the fall of the FTX crypto exchange has been extremely catastrophic. No one ever imagined that the impact would be this huge. The aftermath acted like a chain of events one unfolding after the other, ultimately crumbling down the entire crypto industry to the grounds.
In such cases, the crypto lending, hedge funds, and financing platform Genesis is currently at the verge of extinction. Many institutional actions are being taken on a mitigatory basis to prevent the loss for any of the sides for the Genesis platform.
The Tug of War -Creditors of Genesis
To be true to the core, the Genesis platform has been extremely successful upon being one of the most prominent crypto financing platforms globally. However, as most crypto firms, and crypto based firms, Genesis has put in a lot into the FTX exchange.
With the fall of the FTX exchange, the impact upon the Genesis has been extremely catastrophic. It amounted to the credits, and loans given to Genesis accounts to roughly more than $1.8 Billion. Many of the investors, and creditors to the Genesis platform are now hung up with their eyes popping out, and doing all the possible to prevent any sort of mishaps, and losses to them.
Accordingly, the crypto exchange Gemini, owned by the Winklevoss brothers has sorted out claims of $900 million, and more to the Genesis platform. Gemini has been a partner for Genesis combining together to create a crypto financing product upon the Gemini exchange itself. In terms of such partnerships and more, Gemini has invested a lot into Genesis.
Likewise, many other firms too account to the same scenario. Moreover, it seems that the loan amount to Genesis is on the increase as many come out protesting their demands for their investments, and assets.
On one side are the investors, who have quite lost their capital, and the other are the creditors who are about to suffer the same fate. Inj order to prevent any terms of insolvency, Genesis has formed a Creditors Group, deploying lawyers to make sure that they don’t lose their money credited to Genesis. This includes the worst case even if Genesis declares bankruptcy.
In addition, two other creditor groups have also emerged to defend themselves from losing their investing through Genesis. On the whole, the Genesis platform, and the crypto media platform CoinDesk both belong to the parent company, Digital Currency Group (DCG). In like terms, it seems the effects of the aftermath will reflect upon CoinDesk too, subsequently after Genesis.
