The crypto market has been pumping for the last two weeks, but the risks associated from Genesis and Gemini halting withdrawals remains. Is the pump exit liquidity for whales?
Bitcoin, the leading crypto, is up by nearly 12% in the last two weeks. The price is trading at $17,300. It bottomed around $15,500 and has been in an uptrend since then. At the same time, Ethereum has rallied over 20% in the last two weeks.
Due to these rallies, some believe that the bottom is already in, while others think that crypto still faces bėda priekyje.
Genesis in Deep Waters
Šios FTX žlugimas severely impacted broker Genesis and Gemini Earn. Genesis got into a liquidity crunch with the collapse of FTX, and hence had to halt withdraws. The balance sheet was already kraujavimas following the default of Three Arrow Capitals.
Pagal "Bloomberg" pranešti, Genesis has around $2.8 billion in outstanding loans on its balance sheet. The third of this loan is reportedly made to related entities, including the parent company Digital Currency Group (DCG).
DCG also owns one of the largest Bitcoin funds, i.e., the Grayscale Bitcoin Fund (GBTC). The fund has nearly $ 11 mlrd valdomame turte.
DCG owes $900 million to Gemini
Gemini had partnered with Genesis to provide yields to customers for its earn program. With Genesis halting withdrawals, Gemini earn, too, had to adopt the strict measure of pausing the withdrawals. Reportedly, crypto lender Genesis owes crypto exchange Gemini $900 million.
Pagal į "Financial Times", Gemini has formed a creditors’ committee to recover the funds from Genesis and the parent company, DCG.
Crypto Portfolios to Fall by Another 50%?
With Genesis attempting to keep bankruptcy at bay, the situation might become a ticking time bomb for crypto. The community fears that any negative developments might result in DCG unwinding the GBTC resulting in the collapse of Bitcoin price. Twitter user says that they will not buy the exit liquidity. They expect the retail portfolio to be down by another 50%
Got something to say about situations with Genesis and Gemini or anything else? Write to us or join the discussion on our Telegramos kanalas. Taip pat galite mus sugauti tik tak, Facebookarba Twitter.
Naujausiam „BeInCrypto“ Bitcoin (BTC) analizė, paspauskite čia
Source: https://beincrypto.com/exit-liquidity-cryptos-pump-gemini-genesis-remain-deep-waters/