Will Genesis Go Bankrupt? A Review of the Genesis/DCG IncidentThe collapse of FTX triggered an avalanche in crypto. Rumors of insolvency spread among centralized exchanges, who rushed to show proof of reserve. Alameda's trading partners raced to secure whatever assets that were not gambled away. Venture funds had no choice but to write off one of the worst investments in finance history. Genesis and Digital Currency Group (DCG) are the most notable names among those affected. FTX/Alameda borrowed billions from Genesis, which had already suffered significantly when Three Arrows Capital (3AC) went under. Speculators believe Genesis will have to file for bankruptcy if there's no new funding to cover the losses. Genesis/DCG may sound unfamiliar to ordinary crypto enthusiasts because they primarily serve whales and institutions. In this article, we will first explain what Genesis/DCG is and then discuss what happened and what might happen next.
1 Day Ago