The cryptocurrency market collapses there were rumors about the impending
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The cryptocurrency market collapses: there were rumors about the impending bankruptcy of crypto broker Genesis – Bitcoin fell to $ 15.5 thousand

Another of the biggest players in the cryptocurrency market was on the verge of collapse. It has been reported that cryptocurrency brokerage Genesis is trying to find new sources of funding to address the liquidity issues that arose after the collapse of cryptocurrency exchange FTX. About that writes Bloomberg publication citing own informed sources. Against this backdrop, Bitcoin has updated a two-year low.

    Image source: CoinDesk

Image source: CoinDesk

According to the report, Genesis has spent the past few days scouting for at least $1 billion worth of funding sources. According to The Wall Street Journal, the company has sought help from Binance and Apollo Global Management. It is noted that Binance canceled the transaction citing a potential conflict of interest. Apollo is also likely to refuse to invest in Genesis, but it’s possible that the company is interested in some of the crypto exchange’s loan portfolio.

Despite the news of Genesis’ possible bankruptcy, the company has not confirmed this information. “We have no plans to file for bankruptcy any time soon. Our goal is to resolve the current situation amicably without having to file for insolvency.”— said the representative of Genesis, noting that the company continues to conduct constructive negotiations with potential creditors.

Bitcoin fell to a two-year low amid news of Genesis bankruptcy. During trading, the cost of the world’s most popular cryptocurrency fell to $15,480 per coin, but later rose to $15,913. At the time of writing, Bitcoin was trading at $16,095 per coin (data from CoinDesk platform). Overall, the cryptocurrency market capitalization has declined by $1.4 trillion this year as the industry faced various issues ranging from unsuccessful projects to the collapse of major players like FTX, one of the largest crypto exchanges in the world.

According to financial market experts The Kobeissi Letter, the volume of losses in the cryptocurrency market has exceeded $2 trillion compared to last year’s peak. “The volume of lost capitalization of the cryptocurrency market amounted to $2.3 trillion. Against the background of the current sale. FTX’s collapse was the straw that broke the camel’s back. The damage to investor confidence caused by SBF and FTX will cost trillions. FTX is the biggest scam in history.”says in it message The Kobeissi letter.

It should be noted that for many participants in the digital asset market, Genesis is a counterparty and the company itself is constantly monitored, as it is a kind of indicator of the strength of the cryptocurrency industry. Genesis is one of the cryptocurrency companies struggling after a sustained decline in the value of digital assets amid the collapse of major market players.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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