Is Genesis Trading in trouble??

[Majestic-milf]

 Last year and early part of this year has seen unexpected twists and turns to the crypto industry. We all know how the price of Bitcoin was fluctuating between the range of 15k to 16k to the point it forced speculators to think it was going to get worse; then we were hit with the news of FTX going insolvent and even applying for Chapter 11 bankruptcy, after many customers' funds went down the drain and now we seem to see an upward surge to the price of Bitcoin.

 Genesis Trading, a crypto lender and one of the trading partners of FTX, who at the time of the fiasco, had $175m of it's assets frozen has decided to lay off 30% of it's workers to help stave off a bankruptcy filing. link
 
Digital Capital Group, Genesis' parent company is under fire from prominent investors over the fact that their assets has been frozen. A similar issue to the FTX saga??
If they eventually go insolvent, will we see another drop in the price of Bitcoin??

https://www.bloomberg.com/news/articles/2023-01-18/crypto-firm-genesis-said-to-prepare-bankruptcy-filing-as-soon-as-this-week

[bullrun2024bro]

If they eventually go insolvent, will we see another drop in the price of Bitcoin??

I agree, the latest Bloomberg report sounds pretty reasonable. Therefore, it is quite likely that Genesis has a high risk of becoming insolvent, otherwise the company would not think of filing for bankruptcy. It seems that (so far) no solution has been found with the creditors.

Maybe they will find a solution, but if not and if Genesis were really to go bankrupt, the parent company Digital Currency Group would have to pay out $350m in loans. An enormous sum tbh.

Depending on how the bankruptcy is communicated to the public and how the market reacts to it, I could imagine that we could see another significant fall in the Bitcoin price in a continued negative overall market environment.

Although there has been a slight upward trend in recent days and weeks, this looks a lot like a bear market ralley. I do honestly not think that we are out of the woods yet and that new lows are certainly possible. And here the insolvency negotiations regarding Genesis are certainly an important indicator of whether things will go down again or whether we have already seen the macro Bitcoin bottom.

[Majestic-milf]

If they eventually go insolvent, will we see another drop in the price of Bitcoin??

I do honestly not think that we are out of the woods yet and that new lows are certainly possible. And here the insolvency negotiations regarding Genesis are certainly an important indicator of whether things will go down again or whether we have already seen the macro Bitcoin bottom.

I feel the same way too. Because as of yesterday, Bitcoin's price was scaling at a price of $21k but saw a dip to 20.789k Genesis play an important role in the crypto industry and if they too go down to being insolvent, it certainly will affect Bitcoin hugely. Just recovering from the FTX saga and being faced with this? I expect to see a lot of FUD from investors and buyers as well.

[Zlantann]

If they eventually go insolvent, will we see another drop in the price of Bitcoin??

I do honestly not think that we are out of the woods yet and that new lows are certainly possible. And here the insolvency negotiations regarding Genesis are certainly an important indicator of whether things will go down again or whether we have already seen the macro Bitcoin bottom.

I feel the same way too. Because as of yesterday, Bitcoin's price was scaling at a price of $21k but saw a dip to 20.789k Genesis play an important role in the crypto industry and if they too go down to being insolvent, it certainly will affect Bitcoin hugely. Just recovering from the FTX saga and being faced with this? I expect to see a lot of FUD from investors and buyers as well.

The changes in the price of Bitcoin sometimes cannot be traced to a single event. Hence, I don't think it is the bad news about Genesis that has led to the slight decline in the price of Bitcoin. Genesis was one of the first crypto firms that openly declared its exposure to the bankrupt FTX. The firm openly declared that about $175M of its funds are locked in FTX. The Bitcoin space has already taken note of this exposure and was already ready for Genesis to collapse.

The collapse of some crypto firms last year has created a lot of awareness that it is not safe to keep funds in exchange. People now know that the safest thing to do is to keep their coins in decentralized wallets. So the FUD is reduced to a large extent because people now understand that the failure of exchanges is not the failure of Bitcoin.  

[slapper]

Genesis' impending insolvency adds to the cryptocurrency industry's recent struggles. But the crypto market is volatile and unpredictable. A struggling company or platform doesn't mean the market will suffer. However, the coming months will bring more terrible news. Media is spreading FUD worldwide.

The bitcoin price may be affected by several things, not simply company performance. Genesis' imminent bankruptcy may temporarily lower bitcoin's price, but the industry is cyclical and there will always be growth chances. Currently, the market is downtrending. Note this.

Individuals must stay informed and make smart investments. Always diversify your portfolio and invest only what you can afford to lose. Crypto and stocks are examples. Do your own research and don't just follow TikTok, Twitter, or other FOMO on the internet. Staying knowledgeable and cautious will help you avoid financial losses and capitalize on bitcoin market growth

[Coyster]

Quite a lot of exchanges or crypto lending services usually collapse without giving any sign for an extended period of time, Genesis on the other hand had the signs of collapse written all over it for a couple of months now, thus i thought people would have already been prepared/preparing for it, but that doesn't seem to be the case as i have seen many signs of FUD about Genesis going insolvent today.

Having said that, the thing is that more often than not FUD causes a depreciation in the price of Bitcoin, and if people continue to spread FUD about this issue, it is basically going to spread panic amongst people who don't actually know what is happening/what is going to happen, thus if they sell their Bitcoins in their numbers we might quite rightly witness a slight decline/depreciation in the price of Bitcoin.

[jackg]

Do DCG own foundry too or am I confusing them with someone else? If they go insolvant I could imagine there could be a lot more problems with firms we don't already know are in the crypto space but I'm not sure how likely a thing like that would be.

It seems a lot of companies are taking out far too high a leverage on this sector though and it's probably a good time to commend a lot of retail investors for not doing as badly (sure there's been a few that sell houses to buy the top, but not too many and they're certainly not facing as many problems as these companies - like how the ftx ceo got arrested).

[zaki12]

If they eventually go insolvent, will we see another drop in the price of Bitcoin??

Genesis' bankruptcy is the latest crushing blow to the crypto sector, which is still recovering from the collapse of FTX it looks like it's not over yet. But amidst these difficulties, all indications are that Bitcoin will break major resistance and experience an explosive rally.

as market conditions are shaping up like they were in 2019 when the king of cryptocurrencies kept going. We are approaching a point where we will almost certainly see a continuation of risk assets. We got a bear market relief rally, a similar stage to what we saw in 2019, and then the rally started. Now is the perfect time to start trading and building your portfolio to start accumulating more.

[Majestic-milf]

Do DCG own foundry too or am I confusing them with someone else?

Yes. Foundry is being owned by DCG alongside Luno, CoinDesk, Genesis and the rest. Quite true that a subsidiary of a powerful company such as DCG filing for chapter 11 bankruptcy could affect the state and price of Bitcoin, we hope for better news.
 At present, Bitcoin is experiencing a positive turn up and I believe it would get better than this because a collapse from a company as known as Genesis could rock the boat of the crypto market and Bitcoin could likely experience a rise in volatility.