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Genesis Capital Faces Bankruptcy Hearing on January 23: What’s at stake?

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Genesis Capital Faces Bankruptcy Hearing on January 23: What’s at stake?

Digital currency trading firm Genesis Global filed for bankruptcy on Jan 20, 2023, citing ‘adverse market conditions’. They are likely to complete their bankruptcy by this year May 19. This filing only applies to certain branches of the company and its Global trading and spot and derivatives trading arms are still operational and unaffected. This news has created a stir in the market and the next hearing is on Jan 23. 

Background on Genesis Global Trading Bankruptcy Filing

Genesis Global Trading is a digital currency trading firm that was founded in 2013. It grew as a reputed OTC (Over-the-counter) trading firm in the crypto market. On Jan 20, it filed for chapter 11 bankruptcy which causes a stir in the crypto industry. The company is likely to liquidate its assets to pay off the creditors.

Digital Currency Group Denies Involvement

Digital Currency Group (DCG) is a venture capital firm founded by Barry Silbert and has invested in a number of crypto-related companies. The DCG is also the parent company of Genesis Global Trading. DCG responded to the bankruptcy filing stating that it has no involvement in the filing and the decision was made independently by the Genesis management team. 

In the statement, they further clarified that DCG still owes Genesis Capital a lot of money. $526 million is due in May 2023 and another $1.1 billion is due in June 2032. DCG said they will help Genesis pay back its creditors very soon.

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DCG has also responded to the false accusations made by Gemini related to the Gemini Earn program. They said that the threat of a lawsuit by Gemini is another publicity stunt from Cameron Winklevoss to remove the blame from himself and Gemini. They have also stated that any suggestion of wrongdoing by DCG or any of its employees is baseless and completely false. DCG assured that they will continue to engage in constructive negotiations with Genesis and its creditors with the goal of arriving at a solution that works for all parties.

Stellar – One of the biggest creditors of Genesis

The Stellar Development Foundation, which is one of Genesis’s biggest creditors, claimed almost $13 million from Genesis. However, the foundation stated that this amount is small compared to its overall assets. The Stellar treasury currently holds around 30 billion XLM tokens, which are worth over $200 million. Therefore, the foundation will not be affected by Genesis’s bankruptcy filing.

Impact on the Crypto Market

The bankruptcy filing of Genesis Global Trading has raised a number of questions about the stability of the crypto market. Some have pointed out that the filing is a sign that the market is still in its early stages and that there are still a lot of risks involved. The hearing for this case is set to take place on January 23rd and it will be interesting to see how this plays out and what the ultimate impact on the crypto market will

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Bitcoin

Crypto Market Correction In Feb, Suspects Traders – But There Is A Catch

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Crypto Market Correction In Feb, Suspects Traders – But There Is A Catch

The crypto market has been quite fluctuating lately, especially Bitcoin which is hovering around $23,000 and $22,000 area. The King currency had opened the day on a brighter note, but ended on a bearish trend as the currency has once again dropped towards $22,000 level.

At the time of writing, Bitcoin is valued at $22,826 with a fall of 0.42% over the last 24hrs.

When looking at the other side of the coin, Bitcoin has started the year on a bullish cycle as in January alone the currency had gained more than 45% after hitting a high of $24,300. This momentum pushed Ethereum and other altcoins towards their recovery cycle.

Bitcoin On A Bull Ride Soon

However, while the crypto market is moving towards its recovery phase, traders and investors are not so confident about Crypto’s future and are predicting a correction ahead in Feb. Now, what’s interesting is that the on-chain data platform Santiment claims that the market usually leans where traders least expect. 

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This suggests that when most of the traders are showing a negative stance towards the future of crypto, it creates less selling pressure and more buyers. If this happens, the crypto market will witness and increased demand which will push the cryptocurrency prices towards their next bull run.

The similar claim has been made by a technical analyst, Adrian Zdunczyk aka Crypto Birb where he believes that the crypto market is currently in a disbelief mode.

From my observations, the market is in disbelief mode, still fighting cognitive dissonance and placing too little weight on the recent reversal. Take it with a grain of salt, however. I’ve been riding $BTC from $16920 with size, so I may be biased a little 🙂 pic.twitter.com/DiayBFpwJY

— Adrian Zduńczyk, CMT (@crypto_birb) February 1, 2023

As per the data, often disbelief is the result of fear of missing out on profits and also its a fear of being caught in market correction. However, looking at the broader picture and the increasing institutional interest in Crypto, the market is expected to see continued growth.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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MicroStrategy’s Bitcoin Maximalism Wavers, Shift To Ethereum? 

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MicroStrategy’s Bitcoin Maximalism Wavers, Shift To Ethereum? 

One of the leading Bitcoin network supporters Michael Saylor, the executive chairman and a co-founder of MicroStrategy, could be losing steam as a maxi. 

According to a recently revealed audio clip by altcoin daily, a crypto YouTube channel with over 1.29 million subscribers, Saylor said that he is waiting for the company’s Bitcoin holdings to break even and offload to Ethereum.

The revelation is questionable following Saylor’s daily Twitter updates that display his allegiance to the Bitcoin network. Nonetheless, the Ethereum network has made significant upgrades that may help the asset perhaps overtake Bitcoin’s market capitalization.

Microstrategy’s Investment In Bitcoin: A Giant Miss

MicroStrategy holds approximately 132,500 Bitcoins and reported a digital assets impairment loss of approximately $197 million during the fourth quarter earnings results. As an analytic and business intelligence publicly traded company, its investment portfolio significantly informs most individual investors’ strategies.

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The company uses its Bitcoin holding to borrow loans from Silvergate bank, according to a recent interview on Saylor.

Bitcoin and Ethereum H2H

Bitcoin has enjoyed the top position by market capitalization due to its age and ability to store value. With a market capitalization of approximately $448,493,277,660, the asset’s price has declined about 66 percent from its ATH, of $69,044.77. Ethereum (ETH) on the other hand has a market capitalization of approximately $202,124,722,417 and a daily traded volume of about $9,656,377,364.

The Ethereum market has, however, been leading the smart contract ecosystem with a total value locked (TVL) of approximately $29.44 billion, according to Defillama. With more institutional investors seeking crypto exposure through tokenization, and DeFi platforms on the Ethereum network, Bitcoin maximalists are getting diluted over time.

Notably, Saylor’s crypto bag could be way higher in value should he have invested in Ethereum instead of Bitcoin two years ago. 

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Bankruptcy Proceedings Come At A High Cost For FTX, Law Firm To Earn Millions 

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Bankruptcy Proceedings Come At A High Cost For FTX, Law Firm To Earn Millions 

The FTX bankruptcy case has proved to be a lucrative opportunity for Sullivan & Cromwell, a well-known law firm, as it is expected to earn millions in fees for handling the fallen crypto empire’s finances. 

According to a recent court filing, Sullivan & Cromwell has already billed them $7.5 million for just 19 days of work on the case. Despite concerns raised by US lawmakers, the executive branch, and FTX founder Sam Bankman-Fried about the firm’s previous work for the company and the appointment of former partner Ryne Miller as FTX General Counsel, the new CEO of FTX, John J. Ray III, has defended the firm’s appointment, calling it a leading law firm in relevant areas.

Sullivan & Cromwell law firm set to reap millions

The filing covers fees and expenses from November 12th to November 30th and reports that over 6,500 hours were worked by 32 partners, 85 associates, and 34 non-legal staff. The hourly rates range as high as $2,165 and the company said it is seeking only 80% of the total $9.5 million. This drain on the estate of the corporate group as it seeks to reorganize and restore funds to creditors will be significant.

Bankruptcy judge John Dorsey will make a crucial decision today regarding the appointment of an independent examiner for the case, which FTX has warned could cost up to $100 million and duplicate Sullivan & Cromwell’s work. However, a spokesperson for Sullivan & Cromwell was not available for comment.

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A Bankruptcy Filing Could Be Resource-Exhaustive Too!

The FTX bankruptcy case has attracted widespread attention due to the high costs associated with the case, which are expected to climb more with over 150 people working on it. Big bankruptcy cases like this can generate a lot of work and help pad profits for law firms.

This case serves as a reminder of the high costs associated with bankruptcy proceedings, particularly for large corporations. While the legal fees can be a significant burden for the corporate group, it is important for the court to appoint a reputable and reliable law firm to ensure a fair outcome for all parties involved.

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