Genesis Gets Into Rumors Have Solvency Issues

According to an unconfirmed source, Genesis may have solvency issues. The cause was determined to be due to very large exposure to FTX and Alameda Research. Information also revealed that things will be clearer tomorrow.

On November 16, KOL Autism Capital tweeted that there were market rumors that cryptocurrency exchange and lending institution Genesis may be experiencing solvency issues.

They will have a call with creditors tomorrow at 8 a.m. EST to explain the situation. If the news is true, the company could sell ETHE and GBTC to repay the lender.

The tweet also revealed that Grayscale actually controls GBTC and ETHE, not Genesis. DCG (the parent company of Genesis and Grayscale) is supporting Genesis and the dissolution of the trust may be necessary if there is a solvency problem and if the problem is large enough.

According to Coinglass data, the current negative premium of the Grayscale Bitcoin Trust (GBTC) is 37.08% and the negative premium of the ETH Trust is 34.47%.

As updated in previous Coincu News articles, Genesis also revealed the revelation of having over $175 million in assets withheld on FTX after it stopped depositing and withdrawing funds. client. However, it soon received an additional $140 million from DCG to maintain liquidity.

Besides, the loss of more than $7 billion in investment projects including Alamda Research also makes rumors of liquidity problems well-founded.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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