• Crypto lender Genesis owes its creditors over $3 billion, prompting parent company Digital Currency Group to consider selling its venture-capital portfolio worth $500 million.
• Gemini has terminated its key relationship with Digital Currency Group’s Genesis Global Trading, its partner on a crypto lending product pitched to smaller investors.
• Lumida CEO and co-founder Ram Ahluwalia weighs in on the latest tensions escalating between DCG and Gemini.
The crypto lending market is in turmoil as Genesis Global Trading, the Winklevoss twins’ crypto exchange Gemini’s partner on a crypto lending product pitched to smaller investors, is in hot water with its parent company, Digital Currency Group (DCG). Genesis, which is owned by DCG, is reportedly in debt to its creditors to the tune of $3 billion, and has been looking to offload its venture-capital portfolio, worth around $500 million, to help pay the debt.
The news was reported by the Financial Times on Thursday, citing sources close to the matter. The publication also reported that Gemini had escalated its dispute with DCG by terminating a key aspect of their relationship. This move has prompted Lumida CEO and co-founder Ram Ahluwalia to weigh in on the latest tensions between DCG and Gemini.
The news of Genesis’ financial burden has sent shockwaves across the crypto lending market, with many investors wondering how the situation will play out. DCG, which owns both Genesis and CoinDesk, is now looking to offload its venture-capital portfolio in order to help pay its creditors. This portfolio is said to be worth around $500 million, and could help to alleviate some of the debt.
It is still unclear how much of the debt can be paid off by selling this venture-capital portfolio, and what the long-term implications of this move will be for Genesis, DCG, and the wider crypto lending industry. One thing is certain, however; the move has caused tensions to escalate between DCG and Gemini, as the latter has terminated a key aspect of their relationship due to the situation.
Lumida CEO and co-founder Ram Ahluwalia has weighed in on the tensions, saying that, “It’s clear that things have become heated between DCG and Gemini, and it is likely that this situation will have a knock-on effect on other players in the crypto lending market.” He also said that the news of Genesis’ financial burden will likely cause further uncertainty in the industry, and that clarity on the matter is needed as soon as possible.
It is clear that the situation between DCG and Gemini is far from over, and that it could have major implications for the crypto lending market. The ramifications of the news are yet to be seen, but it is certain that the situation is one to watch closely.