After the collapse of the famous FTX cryptocurrency exchange, the crypto industry has been severely affected, even impacting other digital asset platforms. Today we will be analyzing the current landscape of the crypto industry and the possible future that awaits us taking into account the consequences left by the latest unfortunate events.
Imminent collapse of the crypto market?
Following the fallout from Binance’s announcement that it would sell its FTT holdings and the subsequent collapse of FTX, companies like BlockFi went bankrupt, while other platforms like Genesis created a massive panic in the crypto space that prevented customers of said platform from withdrawing their money; This has caused alarm bells to go off and speculation about its possible bankruptcy to float. In a recent update, Gemini founder, Cameron Winklevoss, blamed Billy Silbert, founder of DCG Group, parent company of Genesis and Grayscale, that Gemini’s Earn funds got stuck in Genesis and therefore the endowment funds have been blocked. In addition, funds have been sent to Grayscale, which continues to have substantial assets. Now, Genesis is unable to release the customer funds. Some experts predict that Grayscale will soon liquidate its assets. If that happens, a new bearish wave could emerge., which would cause a significant setback. This could create new lows for the current bear market.
What if Grayscale has to sell its assets?
Grayscale is a platform that offers GBTC shares where the user can invest in the value of the shares instead of holding the assets. However, the fear of Genesis filing for bankruptcy is now dormant and a rumor begins to spread that Genesis may not have left a large amount to offer to customers. If Grayscale is liquidated, a new wave of declines could hit the market.
In a bear market that seems to have no end, coupled with the problems faced by companies like Grayscale and Genesis, the fear of a possible abyss grows stronger, which could undoubtedly keep the crypto market at the bottom for a long period of time. weather.
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