- Genesis announced it was pausing withdrawals but other features were running
- A Few Crypto Projects Came Out to Indicate Their Exposure or Lack of Genesis
Another blow has been dealt to the cryptocurrency industry as it begins to recover from the ripple effects of the FTX crash and apparent bankruptcy filing.
This November has been a brutal month for cryptocurrencies, and now Genesis has declared that it will no longer process withdrawals. How far does this go and what aspects of Genesis were affected?
On November 16, Genesis Global, an institutional crypto lender, announcement that it would temporarily halt takeovers and new loan originations. Genesis Global has claimed unusual market instability linked to the collapse of the struggling cryptocurrency exchange FTX as the reason for the decision.
This turmoil led to abnormally high withdrawals, which the company says depleted its liquidity.
Genesis Global further affirmed that all of its operations, including derivatives trading, custody and spot trading, are operating normally. Digital Currency Group, the company’s parent company, had declaredcategorically, that the news had no bearing on its own operations since the release.
Gemini and Circle exposed, Tether covered
This product allows users to earn interest on their dormant cryptocurrency deposits. The announcement went on to say that the cryptocurrency exchange is working to return Earn Program customer funds as soon as possible. The company also assured customers that the move had no negative effect on other Gemini offerings.
Gemini platform users seemed terrified of the suspension of withdrawals for the Earn program. This may have been aggravated by the brief breakdown that the exchange experienced on November 16.
Interestingly, on the same day, Tether published a brief statement claiming that the company was not involved in Genesis Global or the Gemini Earn program. This meant that there was no USDT on deposit with the institutional lender for the project.
He also mentioned Genesis as a counterparty in Circle Yield, which was described as an oversized fixed-term yield contract. The total value of the loans was listed at $2.6 million by Circle, which added that “strong collateral agreements” had been put in place to protect the loans.
There are still rumors of an additional impending collapse related to the FTX disaster. The cryptocurrency industry seems to be on its toes at the moment, preparing for the worst. The longest month on record for investors and businesses could be this November.