Genesis puts a check on withdrawals due to market turmoil
Genesis Global Capital has taken the serious and necessary step of stopping all withdrawals and issuing fresh loans. However, this is about the present market scenario that has come about with the FTX going bankrupt. In their firm opinion, the market conditions are not conducive for such activities as of now, and definitely should not be encouraged in any which way.
For the uninitiated, Genesis Global Capital is the lending unit of the top-of-the-line digital asset brokerage firm Genesis Trading. They took the opportunity of making this official announcement on Wednesday. They have made it clear that everyone connected with the company, including the cryptocurrency exchange, is extremely wary of the situation and plans to avoid further unpleasantness and insecurity. However, this is the reason behind them taking this ultimate bold step.
Furthermore, reliable sources from the company disclosed that in the present scenario, appeals for withdrawals are already in abundance. However, it is also true that its current liquid assets are insufficient for complying. They also share the important point that this decision will in no way influence the general activities in the Genesis Trading camp. The fear factor in all of this increases as a partner company of theirs has indeed been affected by the current dismal situation.
However, Gemini seems to be in trouble following Genesis’s declaration. Gemini has the Earn program that deploys its lending through Genesi, stating that its users would be unable to withdraw their funds. However, they promise to do everything in their hands to safeguard the interest of their customers.