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Cash Crisis: $25 Million Wiped Out of Genesis Amid FTX Hack, Fraud and Network Losses

0/ The week of Nov. 16-22 continued to see more victims of FTX being exposed.

@GenesisTrading's">@GenesisTradings bankruptcy concerns drove BTC down 2.5%, posting a fresh two-year low of 15,638.

BTC regained some of the losses atm, but there's not likely to be a long-term reversal because

1/ the Genesis problem hasn't been solved.

But BTC was still resilient compared to ETH BNB XRP, which plunged 4%+ last week.

FOMC will come today at 7 PM UTC to give hints about future macro policies. The sooner we overcome this contagion, the sooner bottom can be found.

2/ Genesis (by @DCGco

- Is one of the largest cryptocurrency lenders & brokerages for institutions - Run the staking programs of @Gemini and @Circle - Has close business ties to @silvergatebank - Originated 40B+ in new loans (Q2 2022) - Had 2.8B in active loans (Q3 2022)

3/ Timeline of the @GenesisTrading crisis:

- Nov. 9: Claimed "no material net credit exposure" to FTX - Nov. 10: Reported a 7M loss - Nov. 11: Updated the number to 175M, DCG stepped in with 140M injection - Nov. 16: Halted withdrawals and new loan originations

4/ Now Genesis is facing the risk of bankruptcy if it can't raise fresh cash.

The firm said it has no plans to file bankruptcy imminently but hired a restructuring adviser.

Investors started to fear that DCG will have to dispose of assets, which affects @grayscale GBTC & BTC.

5/ LTC (+21%) rose 30% in a month, climbing to the 13 spot on Coin360 ranking by market cap. Last week, @saylor said it was a Bitcoin-like "digital commodity."

OKB (+8%) was still trading under its monthly high of 24. @okx saw impressive growth in volume as users left FTX.

6/ The FTX hack chaos caused investors to have an eye on privacy-focused cryptos, and XMR (+4%) seemed to be the most picked.

There are speculations that the hacker can hide his trails using @monero to convert the BTC holdings, then swap XMR to stablecoins on another exchange.

7/ UNI (-16%) after @uniswap new privacy policy that collects data tied to user wallets.

NEAR (-18%) has been in a downtrend since mid-August & lost 50% by the start of November.

SOL (-12%) tanked to its yearly low of 11 on Nov. 22 following the market loss of confidence.

8/ Besides TVL drop, it got worse when @Binance suspended USDT USDC deposits on @Solana along with @okx @cryptocom causing panic.

@Tether_to decided to swap 1B USDT from Solana to @Ethereum

9/ GMX (-4%) saw a peak at 46. On Nov. 23, @gmx_io was the 3 fees generating protocol as per @defillama

The surge in trading volume & users brought more revenue to GMX and sent the token higher before it retraced back.

10/ The NFT market saw a decline in trading volume as the total market cap fell to 11.3B.

Football NFTs stole the spotlight amid @FIFAWorldCup and @TheSaudisNFT was the winner with a 2,000% spike in trading volume.

CHZ also soared ahead of the WorldCup, but down 20% then.

11/ Notable news:

@Nexo had offered @BlockFi an 850M deal to potentially acquire it:

Collapsed @FTX_Official owes nearly 3.1B to top 50 creditors:

Nexo had offered BlockFi an 850 million deal to potentially acquire it
Collapsed FTX owes nearly 3.1 billion to top 50 creditors

12/ @Uniswaps new privacy policy says it collects data tied to user wallets:

@CurveFinance releases whitepaper and official code for its stablecoin:

Bitcoin miner @core_scientific has lost 1.7B this year:

Uniswap's new privacy policy says it collects data tied to user wallets
Curve releases whitepaper and official code for its stablecoin
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