The next victim of the current market crisis may be Barry Silbert’s Digital Currency Group (DCG), which has links with nearly every company in the digital assets domain.
DCG reported last week that Genesis Global Capital’s financing company had made the “difficult decision to temporarily suspend redemptions and new loan launches.”
Genesis has declared that the company “has no plans to file for imminent bankruptcy.” Still, the New York Times reported the next day that Genesis had hired “restructuring advisors,” Moelis & Company, to weigh all possibilities, including bankruptcy.
If such news is in the public domain, it will inevitably affect the cryptocurrency industry.
The news once again impacted the price of Ethereum, which had steadily improved. Ethereum is currently priced at $1,186.45, down about 6% over the past week. The total market value of tokens has been subject to recent fluctuations.
On December 19th, PeckShieldAlert tweeted that two inactive addresses moved approximately 22,982 ETH (worth $27.2 million) to two new addresses. Ethereum was born out of Genesis and Poloniex founded in 2016. Currently, the two new addresses have around 13,105 ETH and 9,878 ETH respectively.
The former addresses are now only worth $57.32 and $25.81 respectively. Moreover, the new address contains only his Ethereum transferred on Sunday. Inactive cryptocurrency asset movements are often followed by a sale of those assets the next day.
Due to current liquidity issues, Digital Currency Group (DCG) and its affiliates are suspending payments. This may be the beginning of his DCG bankruptcy. Genesis and Alameda were intertwined with borrower-lender relationships in cryptocurrencies and bad debt. Genesis needs to go into liquidation, and the bankruptcy of its parent company, DCG, could be attributed to the bankruptcies of FTX and Alameda.
With the growing turmoil in the cryptocurrency market, people are wondering what the future holds. The main question is whether this recession will last into his 2023 or the industry will recover.
VanEck, one of the world’s top investment managers, predicts that the first quarter will be the lowest point for the cryptocurrency market. From April to June, Bitcoin is expected to skyrocket, reaching $30,000 in late 2023.
Former BitMEX CEO Arthur Hayes takes a more bullish approach. He said that large-scale sales of bitcoin by controlled exchanges and bitcoin miners would be halted. More importantly, he wants the Federal Reserve to implement new monetary policy to revive risky assets like Bitcoin.