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Is SBF 2.0 Incoming? Will the Entire Genesis Fiasco End up in the Year’s First Bankruptcy?

Author: Sahana Vibhute

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A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Story Highlights
  • Genesis continues to face heat as the exchanges that held millions of funds are seeking solutions as the customer's assets have been stuck up for quite a long time

  • Alongside, the fear of bankruptcy also hovers over the top trading desk and if it occurs multiple altcoins are believed to drop heavily in the coming days

The FTX contagion continues to spread as the aftermath appears to have not settled. After the fallout of the famous exchange FTX, many platforms which had heavily invested in the firm have been facing dreadful days. Soon after the top trading firm, Genesis which shares a huge trading volume halted customer withdrawals, it was considered an alarming situation for the entire crypto space. 

Currently, the debacle doesn’t appear to settle as it may further cause the final leg down for the prevailing bear market. 

All of it began with the massive fallout of FTX which was triggered by Binance selling their FTT holdings as FTX was not left other than their native token in their reserve. Further, it led to a ripple of fallouts which compelled BlockFi, a well-known landing platform to file for Chapter 11 Bankruptcy. It was the same time when Genesis also halted customer withdrawals which created huge FUD within the space

Will Genesis File for Bankruptcy?

Now all eyes are on Genesis as the speculation of its bankruptcy has been hovering within the crypto space for some time now. In a recent update, Gemini founder, Cameron Winklevoss wrote an open letter to Billy Silbert, the founder of DCG Group, the parent of Genesis and Grayscale. 

Cameron accused him of negotiating in bad faith as the funds of Gemini’s Earn have been stuck with Genisis. The exchange had locked the customer’s assets funds on Genesis which was in turn invested in DCG as per some reports. Further, the funds were sent to Grayscale which continues to hold a substantial amount of assets. 

Now that Genesis and DCG are going down, and not able to pay back the customer’s funds, it is now speculated that Grayscale may soon liquidate its holdings. If this happens so, a fresh bearish wave may kick in to pull a massive leg down, forming new lows of the current bear market. 

What Will Happen if Grayscale is Forced to Sell Their Holdings?

Grayscale, is the top investing and asset management platform offering GBTC shares where-in the user bets on the share value rather than holding the asset. The platform has numerous trusts like Bitcoin trust, Ethereum trust, etc which have been expanded ever since the markets boomed in 2021. 

However, now that the fear of Genesis filing for bankruptcy is hovering within the crypto space, other Bitcoin numerous altcoins also may face acute selling pressure. 

https://twitter.com/karl_0x/status/1609931432742338563

Genesis may not have left with a huge amount to offer back to the customers and if Grayscale liquidates it’s holding a fresh bearish wave that may kick in. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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