One crypto party after another crashes, and that brings concerns. After the collapse of FTX last week, all eyes are now on cryptocurrency lending platform Genesis. The company’s partner, cryptocurrency exchange Gemini, says it has halted withdrawals. What is going on?
Cannot fulfill more than 5 working days
“We are aware that Genesis Global Capital, LLC (Genesis) – the loan partner of the Earn program – has suspended payouts and will not be able to honor customer payments under the 5-year Service Level Agreement (SLA). To afford. says Gemini’s blog post. “We are working with the Genesis team to help customers withdraw their Earn money as quickly as possible. We will provide more information in the coming days.” The news was also shared with customers of the lending service on Wednesday, according to CoinDesk.
This doesn’t sound like the problems Gemini had when hedge fund Three Arrows Capital collapsed. According to a CoinDesk article, it lost “hundreds of millions” at the time. Could this be a consequence or is the company going through a lot in general?
There is still hope
“This past week has been an incredibly challenging and stressful time for our industry,” he apologized to the Gemini cryptocurrency market. “We are disappointed that the Earn SLAs are not being met, but we are encouraged by the commitment of Genesis and its parent company Digital Currency Group to make every effort to meet their obligations to customers under the Earn program.
So the company still has hope, but looking at the crypto companies that have collapsed in the past year, it does not bode well. “We will continue to work with them on behalf of all of Earn’s customers. This is our top priority. We really appreciate your patience.”
Gemini clients are safe
Additionally, cryptocurrency exchange Gemini, which is affiliated with Genesis, says stopping withdrawals will not affect other Gemini services. “Gemini is a stock exchange and custodian. All customer credits on the Gemini platform are held 1:1 and can be withdrawn at any time.”
So here users seem safe, but this can become a great danger for the rest of the crypto world. Genesis says it has a total of $2.8 billion in loans at the end of the third quarter of 2022.
Source: Btc Direct
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Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
