•Genesis Trading, a crypto industry stalwart, has warned that it may be facing bankruptcy after the suspension of its lending services and fruitless weekend fundraising efforts.
• The company is the latest victim of ‘crypto contagion’ following the catastrophic failure of FTX.
• Despite the report, Genesis says it has no plans to file for bankruptcy imminently and is in constructive conversations with creditors.
The FTX Contagion Continues
The crypto industry was dealt a major blow last week with the sudden collapse of FTX. The company, which was one of the largest digital currency exchanges, had to abruptly terminate its lending services and is now facing bankruptcy. This has caused a ripple effect throughout the industry, with Genesis Trading being one of the latest victims.
Despite the dire reports, Genesis says that it is not planning to file for bankruptcy imminently and is instead in constructive conversations with creditors. However, the company has suspended all trading operations for the foreseeable future. This is yet another example of how quickly things can change in the volatile world of cryptocurrency.
The situation at FTX started unraveling last week when the company announced that it was suspending its lending services. This sent shockwaves throughout the industry because FTX was one of the largest digital currency exchanges. The suspension of lending services led to a sharp decline in the value of FTX’s native token, FTT, and also caused collateral damage to other digital currencies.
In an effort to stem the bleeding, FTX tried to raise $300 million through a weekend fundraising round. However, this was unsuccessful and only served to further spook investors. As a result, FTX’s value continued to plummet and it is now facing bankruptcy.
The fallout from FTX’s collapse has been far-reaching. Many companies that were doing business with FTX have been left in the lurch and are scrambling to try and recoup their losses. One of these companies is Genesis Trading, which is one of the largest over-the-counter trading firms in the cryptocurrency industry.
Genesis gives warning
Genesis has warned that it may be facing bankruptcy due to its exposure to FTX. The company has suspended all trading operations while it tries to negotiate with creditors. However, it remains to be seen whether or not these efforts will be successful. Only time will tell how much damage has been done by FTX’s implosion and how many more companies will be pulled down in its wake.
The cryptocurrency industry was dealt a major blow last week with the sudden collapse of FTX. The ripple effects are still being felt throughout the industry, with Genesis Trading being one of the latest victims. Despite reports of impending bankruptcy, Genesis says it is still in constructive conversations with creditors and has no plans to file for bankruptcy imminently. However, all trading operations have been suspended for the foreseeable future as the company tries to weather this storm.
Did you enjoy this Solanews/Metafi content? Remember to follow our social media channels to stay on top of all things crypto, web3, and the metaverse.