Binance backs off investment on Genesis: Is the firm going bankrupt?


a crypto lending platform, has announced it needs to raise $1B in funding to remain intact after FTX’s downfall; however, Binance backed off its investment today.

Following the news, rumors of insolvency circulated on Twitter but the platform denied them saying it is currently working with the creditors to save itself.

White Line
White Line

Genesis founded by Barry Silbert in 2015 was once valued to be about $10 billion last year, now it is $1B short to save itself from going insolvent.

The constant crypto market crash and decrease in crypto tokens’ values led to the firm ultimately being at mercy of external investment.

When FTX went down, many had speculated that the remaining connected firms would also see a domino effect. Among them, Genesis was provided with $1B in funds by Alameda Research.

The lending platform

also had $175 million worth of assets stored in FTX; after all, it was one of the leading exchanges in the world led by SBF.

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So, when the market saw that FTX was nothing but a Ponzi Scheme initiated by the billionaire and its executives, Genesis saw a loss of its major stored funds along with the investment.

As Genesis hints of an incoming crisis, its parent company, Digital Currency Group, has remained silent and only shared that they need $1B in funding to save themselves from going bankrupt.

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