Genesis is, without a doubt, the cryptocurrency giant for all the power and capital that it has moved during the last decade. It has, among many other companies, a cryptocurrency lending firm (yes, there are loans requested in crypto) with DCG, which is its main parent, but things have gone wrong and it has a liquidity crisis so great that it can only be One way headline: Genesis goes bankrupt, and it will drag down the entire cryptocurrency sector with Bitcoin as its target.
Digital Currency Group is in trouble, in serious trouble, as its Genesis subsidiary is on the brink of the abyss. The company continues trying to reach a successful conclusion with the negotiations and its creditors, since there are several and for very high amounts, but… It doesn’t look good.
Genesis can drag the DSG group into bankruptcy
Creditors are trying to save as much furniture as they can, since if the company goes bankrupt there are no guarantees of collection, and the amount is Esports Extrasntic. Therefore, they are accepting both cash and capital from the parent company, all in order not to leave empty and wait for a subsequent judicial process that guarantees them nothing.
The problem is that after the fall of cryptocurrencies, especially Bitcoin, Genesis has not been able to meet its debts, that is, it cannot pay because it does not have liquidity, to the point that the debt is practically unpayable. Reportedly, geminia cryptocurrency broker company, is demanding a whopping amount from Genesis 1,675 million dollars.
The result? so what Digital Currency GroupGiven the inability of Genesis to pay as a subsidiary and enter bankruptcy, it has suspended payments to shareholders in order to protect itself, which has unleashed the anger of everyone who bet on the company. But there is more, because DCG already closed another subsidiary this month, HQintended for the Wealth Managementa downward slide without brakes for the company that is going to be dragged down by its subsidiary Genesis.
DSG could be the next to go
The problem here is that Genesis, as a subsidiary, can wipe out the entire parent and also the entire cryptocurrency system, since the debt seems to be much bigger than what is leaking. The thing is not left here, since DSG also owns CoinDeskcryptocurrency news portal, which seems to be it will be sold or closed outright.
For now, Winklevoss (CEO of Gemini) has already threatened to undertake legal action against DCG and this can be devastating for the crypto world. If the lawsuit is successful, which seems to be the case, The world’s largest cryptocurrency investment fund will fall, and with it, the largest mining pool with the most activity. Why? Guess… Yes, DSG also owns grayscale, Foundry, moon Y TradeBlock.
As we have commented, is the cryptocurrency giant, nobody equals him, he has his hands in almost everything that has to do with Bitcoin and if it falls, the house of cards will end in the ground. Everything indicates that it will, we will have to see how far the shock wave of said fall reaches, but the analysts’ forecasts are bleak for anyone who still has assets in the market.