Major cryptocurrencies spent the majority of their day trading in the negatives on cryptocurrency platforms.
Bitcoin investors have reverted to their defensive position from the previous week as evidenced by the quiet trading activity at $16,700. This represents a 1.4% decrease in trading activity over the last twenty-four hours. The latest price of ether was at about $1,200The decline was 3.7%. CEL and UNI saw their value drop by more than 5% in the past 24 hours. The FTT token of FTX, which was worth $1.66 at the time of writing had lost almost 4%. This represents a substantial decrease from the near-$36 high it reached earlier in this year.
Derar Islam, interim CEO of Genesis, stated that Genesis is looking into several options for its lending division. One of these options is finding a source of new funding. He stated that Genesis would be providing customers with more information on the strategy within the week. Genesis Global Capital served an institutional clientele with a total of $2.8 billion As stated on the company website, the company had inactive loans at the end the third quarter 2022. Digital Currency Group (DCG) is the parent company to CoinDesk. Genesis is owned by Digital Currency Group. “Genesis Global Capital was the lending section at Genesis and today made the difficult decision to suspend redemptions and stop the origination of loans. This was due to the market disruption caused the FTX collapse, and the loss in faith in the industry. Amanda Cowie, vice president of communications, marketing at DCG made this statement.
The stock markets The continued problems with crypto have been ignored by the S&P 500 and Dow Jones Industrial Average (DJIA) respectively. While the S&P 500 and the Dow Jones Industrial Average (DJIA) both had declines of less than one percent, the tech-heavy Nasdaq experienced a surge of more than one percentage point.
Genesis’ statement is the latest issue related to FTX’s financial condition, which resulted in the company filing for Chapter 11 bankruptcy protection last week. The industry has already suffered several disasters in this year’s first quarter, including the collapse of the terraUSD stablecoin (UST) and the LUNA token which served as collateral.
Gene Hoffman, the president and chief operating office of the energy-efficient Blockchain Chia Network, stated in an email to CoinDesk, that Genesis Global Capital’s issue is “the kind of problem that blockchains were built to handle.”
Hoffman stated that the “hypotheses and behaviors” surrounding Wall Street’s growing technology are what will continue to erupt. While cryptocurrency is not a factor in the process of getting a loan, we have seen the players in the business go overboard and increase their debts using assets whose value is unknown in the absence of supervision.
He stressed the importance of moving past pyramid schemes and fraud using “crypto bros”. Blockchains and cryptocurrency are not an asset class, but a collection of competing technologies. It is crucial to take extreme caution when dealing with them.