Genesis is expecting a bailout from potential investors following the FTX contamination. Binance CEO CZ is reassuring investors that crypto will survive even if Genesis doesn’t. The crypto markets are hanging on a loose thread as investors take time to absorb the pressure after FTX’s collapse.
Genesis watches potential investors after FTX debacle
Genesis Global Capital, a crypto lending platform, suffered heavily from the FTX infection. He is now exploring various ways to prevent an untimely collapse. The Digital Currency Group (DCG) subsidiary has confirmed that it has hired Moelis & Co. to protect investors days after suspending withdrawals.
Derar Islam, acting CEO of Genesis, told investors that they are “starting talks with potential investors and the largest creditors and borrowers, including Gemini and DCG.” The troubled crypto lender hopes to ‘expand talks in the coming days’ by hiring Moelis.
Genesis found itself falling like a dead weight in the air due to its exposure to defunct FTX. Over the past three weeks, the company has struggled to secure investors to raise fresh capital. It is no longer possible to access approximately $175 million in derivatives. Because it is locked in a trading account on FTX.
Meanwhile, there seems to be some hope on the horizon with DCG. That’s because Genesis’ parent company injected another $140 million to bolster its balance sheet. As you follow on Kriptokoin.com, DCG CEO Barry Silbert said that while withdrawals and new loan applications have been suspended, other services such as the trading arm and custodian are still operational.
According to Binance CEO, crypto will survive these days
Binance CEO Changpeng Zhao (CZ) said while speaking on Bloomberg TV on Thursday that the exchange should act sooner in relation to the FTX saga that led to the collapse of a $32 billion crypto empire. Now the question is: did CZ know beforehand?
The CEO of the largest exchange by daily trading volume also spoke about the plight of Genesis, saying that his team is in talks to see how a crash can be avoided. CZ also assured that the crypto industry will remain strong even if something undesirable happens in Genesis.
Meanwhile, CZ announced earlier this month that it has created a fund to help struggling businesses impacted by the FTX collapse. Binance will reveal details of its industry recovery fund later on Thursday. Binance will post this information on its blog.
“Crypto hangs on a loose thread as the FTX infection spreads”
Crypto analyst Jhon Isige analyzes Bitcoin to understand the state of the crypto market. On Wednesday, Bitcoin rallied from the $15,484 support to almost $17,000. Cryptocurrencies experienced a relief in the middle of the week with the effect of this. The leading crypto broke out of a double bottom pattern with a target of $12.12% at $18,386.
There is a buy signal coming from the Moving Average Convergence Divergence (MACD) indicator. This confirmed the bullish outlook in Bitcoin price. However, increasing overall load pressure has hindered BTC’s northward movement.
BTC eight hour chartThe bulls need to defend the $16,500 support at all costs to get another chance to push the price up to $18,386. Buy orders will have to wait for Bitcoin to print another green candle above the neckline of the pattern. It is possible for Bitcoin to gain momentum if the MACD moves into the positive territory above the average line (0.00). Because this will provide a buy signal.
However, an eight-hour candlestick near the neckline of the double-bottom formation at $16,397 is likely to open the door for more declines. Thus, short positions towards the $15,484 support are likely to turn profitable.
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