The next casualty of the current market crisis might be Barry Silbert’s Digital Currency Group (DCG), which is linked to almost every company in the domain of digital assets.
DCG reported last week that the Genesis Global Capital lending company had made the “difficult decision to suspend redemptions and new loan originations temporarily.”
Genesis declared that the company had “no plans to file for bankruptcy imminently.” Still, the New York Times reported the following day that Genesis had hired “restructuring adviser” Moelis & Company to look at all possibilities, including bankruptcy.
An impact on the cryptocurrency industry is unavoidable when news like this is in the public domain.
This news has once again impacted Ethereum’s price, which had been steadily improving. The current price of Ethereum is $1,186.45, down nearly 6% in the past week. The total market value of tokens has been affected by the recent fluctuations in
On December 19, PeckShieldAlert tweeted that two inactive addresses had moved nearly 22,982 ETH, worth $27.2 million, to two new addresses. Ethereum came from Genesis and Poloniex, both of which were established in 2016. There are currently nearly 13,105 ETH and 9,878 ETH, respectively, in the two new addresses.
The former addresses are now worth only $57.32 and $25.81, respectively. Additionally, the new addresses only contain Ethereum which was transferred on Sunday. The movement of inactive cryptocurrency assets is often followed by a sell-off of those assets in the following days.
Due to current liquidity issues, Digital Currency Group (DCG) and its affiliates have stopped making payments. This could be the beginning of DCG’s insolvency. Genesis and Alameda had intertwined borrower-lender relationships for cryptocurrency and bad loans. Genesis may have to be liquidated, and the bankruptcy of its parent company DCG could result from the failure of FTX and Alameda.
With the increasing turmoil in the cryptocurrency market, people are wondering what the future holds. The main question is whether this downturn will continue into 2023 or if the industry will recover.
One of the top investment managers in the world, VanEck, has predicted that the first quarter will be a low point for the cryptocurrency market. From April to June, Bitcoin is expected to soar and reach $30,000 in the second half of 2023.
Former BitMEX CEO Arthur Hayes is taking a more bullish approach. He said that the large-scale selling of Bitcoin by controlled exchanges and Bitcoin miners that drove down prices will stop. More importantly, he hopes that the Federal Reserve will implement new monetary policies to revive risky assets like Bitcoin.
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