Digital Currency Group (DCG) subsidiaries Grayscale and Genesis are reportedly selling cryptocurrencies in their reserves to avoid bankruptcy risks. Over the weekend, especially Filecoin and Flow, they saw a decrease of up to 20% accompanied by speculation. Gemini CEO Cameron Winklevoss says in their new statement that companies are working on a new plan.
Gemini CEO confirms crypto companies are working on a new plan
In the first week of December, it was revealed that Genesis owed $900 million to Gemini’s customers. The problem stems from FTX’s dramatic collapse in November. Crypto exchange Gemini operates a product called Gemini Earn in partnership with Genesis. Gemini announced in November that it was suspending withdrawals on the Earn program due to Genesis’s situation.
The wave of bankruptcies, which became more evident in December, places Grayscale and Genesis at the center of speculation. Gemini CEO Cameron Winklevoss reported in a tweet dated December 17 that they have started talks to recover the funds.
Crypto exchange Gemini announced that it is suspending products from its Earn program on Nov. Gemini CEO Cameron Winklevoss reports that they are now working on a new plan to recover these funds:
Earn Program Update: Houlihan Lokey, CFO Houlihan Lokey, began planning to resolve liquidity issues at Genesis and DCG and provide a way to recover funds. It’s still in the early stages and discussions are ongoing, but we’ll let you know as soon as more information becomes available.
Altcoins in DCG’s reserve fall sharply
The crypto market has experienced a massive sell-off in the last 24 hours. Digital Currency Group (DCG) Grayscale’s NEAR, Filecoin, Ethereum Classic etc. Various assets related to investment products, such as investment products, lost more than 10% on average, giving rise to fears that the company was selling.
In the last 24 hours, Filecoin, Near, Ethereum Classic, Litecoin , Bitcoin Cash etc. A few DCG-related coins, such as Binance-backed cryptocurrencies such as BNB, Trust Wallet Token have also seen significant red candles. Other altcoins such as Algorand, Cardano, Chainlink, Avalanche, and Solana saw their values plummet during the sell-off. cryptocoin.com We have included the details in this article.
Meanwhile, it is still unclear why altcoins are experiencing a sudden sell-off during this period. However, the crypto market has experienced one of its most turbulent weeks in recent history. Sam Bankman-Fried, founder of FTX, was arrested in the Bahamas at the behest of the US government. SBF was later released on bail as he was deemed to be at risk of escape. He is also in the midst of rumors about being in trouble at Binance. The leading exchange saw a surge in withdrawals after growing fears over its reserves. Despite this concern, many believe that the above decline is due to DCG-driven sales.
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