Several exchanges and lending platforms have experienced issues processing withdrawals, causing fear and uncertainty in the crypto market. Despite this, Bitcoin and other cryptocurrencies have held up relatively well over the past seven days. There have been lawsuits against celebrities who promoted FTX, an exchange tied to Blackfy which is planning for imminent bankruptcy. Genesis Global Capital, the lending partner of Gemini’s Earn program, has paused withdrawals, causing concern as the company has ties to several other platforms. Withdrawing funds from earned programs is advised, and storing crypto in a cold storage or hot wallet is recommended. Despite the current challenges, Bitcoin and Ethereum are still seen as safe investments.
Recently, the crypto market has been facing a lot of challenges. Sam the Crypto Market shares some insights into the current situation.
Despite the challenging times, Bitcoin is still performing relatively well. In the last seven days, it bounced back up from its low of 15,000, which is good news for crypto enthusiasts
The Recap of Recent Events
There have been several events that have taken place, and it’s essential to recap them. Bigman Freed gave a detailed thread that explained what happened; he shared the amount of leverage they had and what exactly happened. He also shared they had four billion dollars withdrawn in a day, creating a liquidity problem for them as they used their tokens as collateral. Celebrity backers such as Tom Brady and Larry David are getting sued by crypto investors, which might not be productive. Blackfy is also planning to file for bankruptcy, and FTX was using them to keep the business running. Voyager, who were tied to FTX, cancelled their customer vote and will not proceed with proposed sales. All this is an indication that the market is still facing challenges.
The Genesis and Gemini Situation
The new news is that Genesis Global Capital has paused customer withdrawals and will not be able to meet their obligations for five business days. Genesis is Gemini’s lending partner, which is well known in the crypto market. Gemini is working with Genesis to help regular earners redeem their funds as soon as possible. However, it’s vital to note that this does not impact any other Gemini products and services.
What This Means for Crypto Investors
This is a challenging time for crypto investors, and it’s crucial to exercise caution. Sam recommended that it might be best to withdraw funds from any earned program or anything that gives interest, except for staking, which still has some liquidity. It’s best to store your money in cold storage or hot wallets and use platforms like Ledger or Trezor. More exchanges and lending platforms might go down, so it’s best to have backup plans.
Despite the challenges facing the crypto market, crypto enthusiasts believe that Bitcoin has a major place in the world as the only thing that can be self-custodied. It’s safer to hold Bitcoin in the right way than in a bank, and it’s more flexible and easier to transact with. It’s essential to exercise caution and backup plans during this challenging time.