The cryptocurrency market is in a state of unease due to the danger of high-profile companies going bankrupt. One is the Digital Currency Group (DCG), the parent company of Genesis and Grayscale. In a possible bankruptcy, 6 altcoins can be used as a reserve for sale.
Is Digital Currency Group sinking?
Amid concerns about Genesis’ sales, speculation is mounting about a possible Digital Currency Group (DCG) bankruptcy. After Digital Currency Group (DCG) experienced significant sales on December 17, there has been a lot of speculation about the stability of the platform. The company’s connection to FTX continues to threaten the cryptocurrency market. Market players are still unsure of the stability of Genesis and Grayscale after FTX’s bankruptcy. This attitude was linked to the downward price trend of cryptocurrencies. The recent Binance FUD news has also reduced the market’s total value by around 5%.
These altcoin projects are being sold
Previously, substantial sales had occurred in DCG’s reserves. Altcoin projects such as Filecoin, Flow, Stacks, Livepeer, Ethereum Classic, Decentraland and others were involved in the transactions. Meanwhile, there are signs that Genesis’ parent company DCG is in danger of going bankrupt. The company’s reserves strengthen speculation that it is selling its altcoins. According to experts, this can mean two things:
- They are trying to repay the $1.5 billion loan to Genesis. In the event of bankruptcy, the loan can be recalled.
- They enter episode 11. To do this, they must first consume all liquid assets.
The ongoing FUD surrounding the liquidated companies is still causing problems for the cryptocurrency market. Bitcoin has lost around 5% at one point today, according to CMC data. Speculation around Binance was effective in sales.
Amid Binance news, the crypto market took another hit
The total crypto market capitalization is at risk of falling below $700 billion. A very different scenario has emerged for altcoins, which have been pressured by pending regulation and fears that major exchanges and miners may go bankrupt. This explains why total market capitalization has dropped 4.7% since Dec.
According to court documents filed on Dec. 15, a U.S. Board of Trustees announced the committee responsible for part of FTX’s bankruptcy proceedings. These include Wintermute Asia, a leading market maker, and GGC International, a member of troubled lending platform Genesis. Investors remain in the dark about who the biggest creditors from the failed FTX exchange group are, fueling speculation that the outbreak could continue to spread.
In addition to the drama, auditing company Mazars Group announced that it has stopped its audits. The firm previously audited the reserves of KuCoin, Crypto.com, and Binance. cryptocoin.com As we reported, Binance saw one of the biggest fund outflows of recent times this week.
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