2022-11-23
Grayscale the world’s largest cryptocurrency trust is facing a big problem. Genesis, a cryptocurrency lending and brokerage services for institutional investors is unable to find $1 billion USD fund. It raises concern that Genesis can go bankrupt.
On November 16, 2022 Genesis halt withdrawals of assets. Genesis has
$175 million stuck in FTX.
Digital Currency Group has 5 subsidiary companies including CoinDesk,
Foundry, Genesis, Grayscale Investments, and Luno.
It was reported that on August 2022
Genesis lend $1 billion loan to FTX. FTX uses $1 billion worth of FTT as a
collateral.
Currently, FTT price drops nearly 97%. Making value of collateralized
asset eroded. Therefore, Genesis is urgently seeking a new loan or new funding
from investors. Otherwise, it can go bankrupt.
