Volatility in the cryptocurrency market has been minimal over the past 24 hours, despite Digital Currency Group (DCG) subsidiary Genesis Global Capital filing for Chapter 11 bankruptcy protection on Jan. 19.
Rumors of bankruptcy circulated in November 2022 when the Gemini exchange suspended withdrawals from its Earn program as its lending partner Genesis suspended withdrawals.
Subsequent public altercation between Gemini co-founders Tyler Winklevoss DCG CEO Barry Silbert highlighted liquidity issues for DCG and Genesis. Meanwhile, Cameron Winklevoss said:
“So why does DCG owe Genesis $1.675 billion if it doesn’t? Oh yeah, that promissory note…“
The FTX-Alameda situation was fresh on everyone’s mind and the public backlash was mounting.
According to the bankruptcy filing, the top 50 Genesis creditors owed a total of $3.5 billion, with Gemini having the most significant debt of $769 million.other worthy of attention Creditors include Van Eck, Abra and Decentraland.
crypto market is stable
Despite the blow, the cryptocurrency market appeared unperturbed by the event. Over the past 24 hours, the market cap has dropped to $962.17 billion on Jan. 19.
However, there was no sharp selling in response to this news. Instead, after bottoming out, the total market capitalization peaked at $984.96 billion in the early hours of the next day.
Market leader Bitcoin gained 0.74% in value over the period. At the same time, the rest of the large-cap stocks posted similarly flat performances.
Genesis bankruptcy factored in
Co-Founder of Crypto VC Firm Placeholder Chris Bernisky acknowledged a tweet from @Flowslikeosmo says the market has priced in the Genesis bankruptcy.
“It’s important to recognize when markets start brushing off bad news”
Similarly, investors Mike Alfred I repeated these comments, alluding to months of advance notice. But referring to a well-known creditor and his creditors, Alfred warned of more trouble ahead.
“The Genesis bankruptcy was priced in. Everyone knew it was coming. Think about the effect.“