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Genesis Global Capital is a cryptocurrency trading platform that works in the field of lending and borrowing large amounts of Bitcoin crypto assets for financing. Genesis is a subsidiary of DCG (Digital Currency Group).
DCG (Digital Currency Group) is a venture capital firm founded in 2015 by its CEO Barry Silbert, a crypto veteran who started investing in cryptocurrencies in 2013 who is a former investment banker. Since the fall of the FTX exchange platform lending and borrowing Genesis capital has experienced liquidation problems which have caused them to have to suspend withdrawing funds.
Recently, the CEO of Gemini, Cameroon Winklevoss, issued an open letter to the CEO of Digital Currency Group, which contained “Delays from DCG (Digital Currency Group) paying debts to Gemini worth $ 1.6 billion”. The open letter was shared by the CEO of Gemini through his Twitter channel which can be accessed in the image below :
Genesis Global Capital is also a company under the leadership of Grayscale which we have discussed in a previous article. In short Grayscale is an asset management that manages more than 650 thousand BTC.
Genesis which has been bankrupt, and made a stop at the revocation since last year. Barry Sillbert’s sin is mixed funds. Commingling funds are investment vehicles created by investors’ money, so instead of individual investments made on behalf of investors, a mixed fund is a collection of lots of money investors have pooled together. If DCG (Digital Currency Group) goes bankrupt, many people will not trust / reduce investor confidence in grayscale, where grayscale user money will be held by coinbase.
Personal view
To be honest, there have been several cryptocurrency lending and borrowing platforms that have gone bankrupt, such as 3AC and Celsius. There may still be several other problematic lending and borrowing platforms. management on the platform is arguably bad enough to cause damage to their business. Lending and borrowing still cannot be implemented properly in cryptocurrencies if you look at the cases that have occurred because there are still many loopholes.
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