Following the news that cryptocurrency lender Genesis has filed for bankruptcy;

Suneet Muru, Analyst at Thematic Intelligence Team at GlobalData, a leading data and analytics company, offers his view:

“The Genesis bankruptcy is far from unexpected. Since the Terra-Luna crash, the biggest digital asset over-the-counter (OTC) trading firm has received blow after blow, and it was only a matter of time before it fell. The market priced this event in months ago, so we won’t see a plunge in market cap as we did following the FTX collapse.

“While the fallout will be rough, the bankruptcy will go a long way towards breaking the chain of lending created by 2021’s bull market. The industry won’t be able to properly focus on building up again until this is flushed out, but it will take a long time. The metaverse winter will also be exacerbated, with Decentraland listed as one of Genesis’s top creditors.

“Genesis is one of five subsidiaries of Digital Currency Group (DCG). It is highly likely that DCG will be forced to sell assets to try and plug this multimillion-dollar hole. If this happens, it will send shockwaves throughout the industry on an unprecedented scale.”