Bitcoin steady after Genesis' bankruptcy
The Bitcoin and the crypto market seem to not be paying much attention to Genesis filing for bankruptcy this morning.
Januray 20, 2023 - The Bitcoin and the crypto market seem to not be paying much attention to Genesis filing for bankruptcy this morning. BTC and ETH are posting ~1-2% gains in the last 24h, showing that the bad news regarding the DCG group’s lender and the trading platform was most likely already priced in. In our view, this reaction could also mean that the crypto market is moving on from the aftermath of FTX collapse and its consequences, underscoring Bitcoin’s resilience in one of the toughest bear markets so far.
Genesis was the first over-the-counter Bitcoin trading desk launched in 2013, becoming one of the crypto market’s largest players. In 2020, the Winklevoss brothers’ exchange Gemini and Genesis had partnered on the Gemini Earn program, which was finally terminated on January 11, after accusations of Genesis withholding more than US$900mn in customer funds. After weeks of speculation, Genesis finally filed for bankruptcy, alleging that an in-court restructuring would be the best possible outcome for all its stakeholders. The company confirmed it was severely impacted by the default of Three Arrows Capital and the bankruptcy of FTX.
Cameron Winklevoss, one of the founders of the exchange Gemini, was quick to say that Genesis' bankruptcy does not insulate Barry Silbert or DCG from accountability. Winklevoss threatened a lawsuit against DCG and Silbert arguing they failed to make a “fair offer” to creditors like Gemini Earn users.
In the midst of DCG’s turmoil, Cardano founder Charles Hoskinson claims that he is interested in acquiring Coindesk, the largest cryptocurrency news website, also a subsidiary of the DCG group. According to Hoskinson, he would like to get to journalistic integrity again. Hoskinson usually complains about being treated unfairly by the media. Anyways, the sale of Coindesk could help to save what remains of DCG, in our view.
We are a global cryptoassets exchange. We became the first business worldwide to use NASDAQ’s technology to offer cryptocurrencies trading. Not only that, but we are also the first exchange not charging trading fees, keeping our client's assets with Fireblocks, the main institutional cryptoassets storage company in the world, and also having insurance for those assets.
Therefore, we built a governance level in the crypto market only compared with that of traditional financial institutions.