As a result of Genesis pausing its lending business, crypto exchange Gemini has halted its Earnprogram. Gemini customers with assets deposited into the Earn program will no longer be able to receive their funds back within five businessdays, as stipulated in the program’sagreement. Gemini Earn lets customers lend out their crypto assets to Genesis to earn yields of up to8% annually. The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but DecentralMedia,Inc. makes no representation or warranty as to thetimeliness,completeness, or accuracy of any information on or accessed through thiswebsite. DecentralMedia,Inc. is not an investmentadvisor. We do not give personalized investment advice or other financialadvice. The information on this website is subject to change withoutnotice. Some or all of the information on this website may becomeoutdated, or it may be or become incomplete orinaccurate. Wemay, but are not obligatedto, update anyoutdated,incomplete, or inaccurate information. You should never make an investment decision on an ICO,IEO, or other investment based on the information on thiswebsite, and you should never interpret or otherwise rely on any of the information on this website as investmentadvice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on anICO,IEO, or otherinvestment. We do not accept compensation in any form for analyzing or reporting on anyICO,IEO,cryptocurrency,currency, tokenizedsales,securities, or commodities.
Key Takeaways Genesis has paused its crypto lending business, citing “extreme market dislocation” caused by FTX’s collapse. Crypto exchange Gemini has also halted withdrawals from its Earn program. The news of the FTX contagion has weighed on the crypto market. Genesis Global Capital has temporarily suspended redemptions and new loan originations following the spectacular collapse of the FTX cryptocurrency exchange. Genesis, Gemini Hit by FTX Contagion Early signs of contagion from FTX’s bankruptcy are emerging. Genesis Global Capital, the lending arm of crypto giant Genesis, announced Wednesday that it had temporarily suspended redemptions and new loan originations. The firm cited “extreme market dislocation” and a loss of industry confidence caused by the collapse of leading crypto exchange FTX last week. “We recognize how challenging this past week has been due to the impact of the FTX news,” the official Genesis Twitter account tweeted as it announced the news alongside its parent company, Digital Currency Group. “At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market environment.” While the future of Genesis’ lending business has been thrown into doubt, the firm maintains that other parts of the company are still in good standing. At present, Genesis’ spot and derivatives trading services remain fully operational. The firm also emphasized that Genesis Global Trading was independently capitalized and operated, meaning that a potential insolvency would not impact other parts of its business or Digital Currency Group. As a result of Genesis pausing its lending business, crypto exchange Gemini has halted its Earn program. Gemini customers with assets deposited into the Earn program will no longer be able to receive their funds back within five business days, as stipulated in the program’s service-level agreement. Gemini Earn lets customers lend out their crypto assets to Genesis to earn yields of up to 8% annually. “We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible. We will provide more information in the coming days,” the official Gemini Twitter account tweeted Tuesday. Like Genesis, Gemini has assured customers that other parts of its business have not been affected. “Gemini is a full-reserve exchange and custodian. All customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time,” it said. Crypto Market Reacts to Contagion Fears In response to today’s contagion fears, Bitcoin and the broader crypto market have continued to decline. The top cryptocurrency is down over 4% from yesterday’s high of around $17,100. Other assets have been hit harder. Ethereum, the second-largest crypto asset by market capitalization, has dropped more than 6% and is testing support at the $1,200 level. Both assets are fast approaching their yearly lows set last week as FTX’s bankruptcy rocked the crypto market. Genesis and Gemini are the most recent companies hit by FTX contagion, but they likely won’t be the last. The FTX empire was an industry-spanning business comprising several different yet interlinked companies. Like with the collapse of the Terra ecosystem and crypto hedge fund Three Arrows Capital earlier this year, it will likely be some time before all affected parties are exposed. Disclosure: At the time of writing this piece, the author owned ETH, BTC, and several other crypto assets. The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.