Genesis Crypto Firm Files for Bankruptcy, But Altcoins Soar
Genesis Files for Bankruptcy Protection in the Crypto Industry
Last Thursday evening, Genesis, a significant player in the market, filed for Chapter 11 bankruptcy protection, dealing a severe blow to the cryptocurrency sector. The parent business, Digital Currency Group (DCG), is also at risk of experiencing similar financial difficulties as a result of this decision.
One Positive for the Crypto Market
Despite the fact that this news appears to be bad, it could really help the market feel more stable. Due to the ambiguity surrounding the company’s financial situation, the Grayscale funds, which are managed by DCG and hold billions of dollars’ worth of cryptocurrency, have been selling at a discount.
Unlocking Token Value
Additionally, the Shanghai Ethereum upgrade, scheduled to occur in March 2023, may be able to increase the value of tokens like Lido DAO. The market may undergo big changes as a result of this update because Ethereum has billions of dollars locked up right now.
Effects of a Buying Frenzy
While these incidents could have had an impact on crypto values, it’s probable that Friday morning’s purchasing frenzy had a bigger influence on pricing. Different tokens showed the pattern, and by mid-afternoon, double-digit percentage gains had been reported.
Continued Volatility in 2023
The volatile nature of the cryptocurrency industry is well-known, and 2023 is predicted to see more of the same. The number of daily moves has been in the double digits over the last two weeks alone. As a result, it is advised to be cautious while investing and to concentrate on blockchains and projects of high caliber that have a robust development and user community.
