“After its lending arm suspended services last week and spent the weekend on fruitless fundraising efforts, crypto industry stalwart Genesis Trading has warned that it may be facing bankruptcy, Bloomberg has reported. Despite the report, the company said it has no such plans.
We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.
Genesis launched the first over-the-counter Bitcoin trading desk in 2013, going on to become one of the industry’s largest players. But in the wake of the catastrophic failure of FTX, the company was facing “abnormal withdrawal requests” and was casting about for a $1 billion bailout last week.”
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“In the case of FTX, the red flags that VCs missed may have in part been due to the “byproduct of the funding environment,” which made it easier for crypto startups to receive early-stage funding with “extremely low interests,” as “tons of capital” flooded into the VC market.
The amount of money available from funds that didn’t ask tough questions more than offset the amount from more discerning investors who were turned off by the lack of oversight at FTX’s board. FTX’s collapse may be a marker for addressing the broader issues of “oversight, compliance [and] auditing” and that may weed out some founders.
Now, the tide for VCs may be shifting, giving investors more leverage in negotiations.”
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“Jon Cunliffe, deputy governor at the Bank of England (BoE), said the U.K. may need a digital British pound as he discussed whether the collapse of crypto exchange FTX would influence the country’s decision to issue a government-controlled digital currency.
Over the past few days, I have had a few comments both to the effect that the collapse of FTX shows that we need to get on and issue a digitally native pound.
Cunliffe said that crypto needs to be regulated in the U.K. to protect consumers and investors, ensure financial stability and enable innovation.”
“The agreement will allow Celo to make use of ConsenSys’ Infura infrastructure. Developers will be able to deploy Ethereum-based decentralized applications (dapps) built with Truffle. The integration will also allow for developers to transact between Celo and other DeFi platforms and dapps.
In addition, the partnership is intended to kick off Celo’s compatibility with MetaMask, a popular Ethereum-based wallet. Celo will also join the Ethereum Climate Platform that ConsenSys launched last week.
Developers can use Infura’s trusted and complementary tooling to seamlessly communicate with the Celo blockchain for rapid deployment and scaling.”
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