Global Cryptocurrency Trading Company Genesis, Which is considered a subsidiary of Silbert’s Digital Currency Group can go bankrupt if it is not provided the liquidity to continue its operations or if the company is not able to secure the next round of funding for maintaining its operational cost in these situations this crypto Trading Company Genesis can go bankrupt according to the reports of media house Blomberg.
The cryptocurrency trading platform Genesis has been struggling with the process of raising fresh funding rounds from all of its previous lending partners. If the company is having in this situation for a long time it may face the bankruptcy stage as per the analysis of Blomberg.
What is the monetary situation of the crypto trading company Genesis?
Genesis has been facing a liquidity crunch since the cryptocurrency exchange platform FTX filed for bankruptcy two weeks back. Along with that Genesis has been trying to raise approximately $1 billion from the crypt companies like Binance to continue its operational cost for the next few months, as per the reports by Bloomberg.
People who are familiar with the situation of Genesis company have confirmed this issue with the Crypto news platform Block. These people mentioned that Genesis has been struggling in the process of raising any possibility of emergency funds, which will be in the range of $1 billion to $500 million.
The parent company of Genesis of Digital Currency Group mentioned that they won’t be selling any parts of their present venture portfolio to resolve the Liquidity crunch issue in the Genesis company. Along with that Digital Currency Group will also not sell Partially reduced pic sticks from Grayscale, which is seen as the money-maker for the investment company for the Digital Currency Group. To resolve the issues of a liquidity crunch at Genesis the authorities of Digital Currency Group are having discussions with the bankers from the company Ducerne Partners LLC.
According to the recent discussion of the Genesis platform with Bloomberg, Genesis sports persons mentioned that they are not having any plans of bankruptcy from the present liquidity crunch issue at the company and they are working to resolve this situation immediately.
The lending partner of Genesis Trading Company, Genesis Global capital has suspended any new loans or any redemption requests for the Genesis trading platform since last week after the cryptocurrency exchange platform FTX collapsed along in a similar move a crypto firm crypto company Three Arrows Capital collapsed in the recent times.
During all this news of the collapse of Crypto platforms. The parent company of Genesis trading the Digital Currency Group mentioned that they are not having any issues with Genesis Company and that the company will be able to resolve this temporary issue very soon.