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The FTX exchange crash has caused a major stir in the entire cryptocurrency industry. Several cryptocurrency firms have taken major hits in recent months due to the FTX crash.
The Digital Currency Group (DCG), a major cryptocurrency conglomerate has witnessed the worst downfall due to the crash of the FTX brand.
With the DCG facing a major impact, many of its subsidiaries are also feeling the pressure. Some of its subsidiaries have started to face liquidity problems and they have announced that they may file for bankruptcy.
CoinDesk May Go on Sale
Things have not been good for CoinDesk ever since the FTX crash has taken place. Now the matter is getting worse and the company is on the verge of going on sale.
The reports suggest that CoinDesk has recently acquired the services of Lazard, a major asset manager for financial advice.
Lazard has a total of $274 billion worth of assets it is currently managing, which shows that the firm has been managing its clients’ assets quite well.
As the company goes for sale, it will be ruled out of the control of Barry Silbert, the current CEO of DCG.
CoinDesk Wants Out of the Liquidity Crunch
CoinDesk has been facing a huge liquidity crisis and it is all thanks to the FTX exchange. If it weren’t for the exchange’s downtrend, things would have been very favorable for the entire cryptocurrency industry.
While the rest of the cryptocurrency firms are trying to recover from the downtrend caused by the FTX crash, things have turned ugly for the DCG.
The crypto conglomerate has been trying its best to deal with the financial troubles that it has been facing. It is trying to resolve them so it does not have to go bankrupt or face any kind of bankruptcy.
So far, it seems that the troubles have caught up to the DCG. The liquidity crisis has gotten the best of the crypto conglomerate and it is finding it much more difficult to make it out of the troubles caused by the FTX crash.
Other major firms such as Three Arrows Capital and many more have also become prey to the financial crunch caused by the demise of the crypto exchange.
Decisions made by Genesis
Genesis, which is the lending arm of the DCG, also had to make difficult decisions following the FTX demise. The platform has reportedly cut off 30% of its entire workforce ever since the incident took place.
This is not all, Genesis is also finding it much more difficult to handle its financial losses. It is still facing a troublesome situation and has, therefore, decided that it is going to file for bankruptcy.
There are reports that the Genesis platform is preparing to file for bankruptcy. The community of Genesis may soon receive the shocking news of the platform going bankrupt.
This is mainly because the Genesis platform reportedly owes a tremendous amount of money to creditors and customers.
According to rough estimates, the platform is currently under a huge $3 billion debt, which it has no way of paying back any time soon.
The report was broken by CoinDesk
It was back on November 2, when a report was broken by CoinDesk, which revealed the nature of FTT tokens held by Alameda Research.
It is the sister company of the FTX exchange and it reportedly held FTT tokens that belonged to the FTX exchange. The amount it held was tremendously high and it meant that these funds were from the investors.
Surprisingly, Binance, which was the biggest rival of the FTX exchange, revealed it had over 20% stake in the FTX exchange, which was in the form of FTT tokens.
The Binance exchange resorted to selling all of its stake in the FTX exchange, causing a major sell-out, plunging the FTT tokens value all the way to the bottom.
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