There is no peace for the cryptocurrency. The global digital currency market has maintained its upward trend after the bankruptcy of genesis, one of the largest companies in the Bitcoin and cryptocurrency sector, while it cared less about the news that the crypto exchange Gemini: it would cut another 10% of its workforce. Despite this, the market has not reacted with hysteria to this (yet another) blow. Indeed, in recent weeks the value of Bitcoin and other cryptocurrencies has risen, even if we are far from the 70 thousand in January 2021, but the trend reversal is evident. Why?
| Cryptocurrency | Earnings | Price |
| Bitcoin | + 0,25 % | dollars 22.976,30 |
| Ethereum | + 0,12 % | dollars 1.628,59 |
| BNB Faucet | + 2,67 % | dollars 313,45 |
However, several operators believe that the worst is over. Furthermore, even the decline of the US dollar it is another factor that has helped sustain the price increase of major cryptocurrencies. Then, many institutional investors would be increasing their holdings in anticipation of the next bull run, also in view of theBitcoin halving in 2024, one of the most important processes of its economic system. This is the event - which occurs approximately every four years - in which the block premium of a cryptocurrency is divided in half to reduce its emission level, making it a scarcer commodity (and therefore increasing its demand) and fighting the 'inflation. In the past, the halving has always led to an increase in the value of Bitcoin and many believe that this time too the currency will not disappoint.
Consequently, all these factors contribute to the positive trend of cryptocurrencies, which has not been affected by the crack of Genesis - which paid dearly for Ftx mess – given that the market had already taken it into account. But it's the return of good weather or just a flash in the pan?
Cryptocurrencies on the rise: the Genesis crack
The platform Genesis Global Holdco filed for bankruptcy on January 20 along with its two subsidiaries, Genesis Global Capital and Genesis Asia Pacific. The exchange has requested the use of the so-called "Chapter 11" of the US bankruptcy law, a formula that offers companies the possibility to restructure their debt through a reorganization plan.
Although perhaps there is still one last hope. The platform hopes to achieve a settlement with your creditors within this week. “I don't think we will need a mediator. I am very optimistic”, said the lawyer O'Neal adding that Genesis hopes to emerge from bankruptcy by May 19 thanks to the sale of some assets and the arrival of new financing. If successful, Genesis creditors could receive cash, digital assets, and stock from brokerage accounts along with the auction proceeds.
The judge approved several motions, including paying employees and vendors, a common practice in bankruptcy proceedings. The branches of Genesis that deal with loans – Genesis Global Holdco, Genesis Asia Pacific e Genesis Global Capital – have been in discussions with creditors for about two months, since it stopped customer withdrawals in November 2022.
The parent company was also included in the discussions, Digital currency group which, according to Bloomberg, owes Genesis nearly $1,7 billion. DCG's debt to the exchange includes approximately $575 million in loans due in May 2023 and a $1,1 billion IOU due in June 2032.
Gemini downsizes and lays off 10% of its staff
The twin-backed cryptocurrency exchange Winklevoss was swept up in the bankruptcy of cryptocurrency lending giant Genesis Global Capital. As a result, Gemini was unable to return funds to Earn account holders, leaving behind $766 million in debt, and causing tension between Gemini and its parent company, Digital Currency Group.
“It was our hope to avoid further cutbacks after the summer, but persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad players in our industry have left us with no choice but to revise our outlook and cut staff further,” he wrote. Cameron Winklevoss in an internal message obtained by The Information.
According to PitchBook data, as of November 2022 Gemini has about 1.000 employees, which means that at least 100 people may have lost their jobs. It's about the third cut for the company that had already reduced its workforce by 7% in July 2022, after a 10% reduction the previous month.
Other cryptocurrency companies (Crypto.com, Coinbase, Kraken) have cut staff since November 11, when the crypto exchange of Sam Bankman Fried Ftx has filed for bankruptcy. In early January, Coinbase cut 20% of its workforce in a second major round of cuts in an effort to preserve liquidity amid the cryptocurrency market downturn.
