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Gemini Terminates Key Partnership with Genesis Amidst Growing Financial Woes

Posted on 14. January 2023 in Allgemein

-Genesis Global Trading, a crypto lending product pitched to smaller investors, is in dispute with Digital Currency Group, its partner.
-Digital Currency Group is the parent company of Genesis and CoinDesk and is looking to sell some of its venture-capital portfolio, worth around $500 million, to pay off its creditors, who Genesis owes over $3 billion.
-Lumida CEO and co-founder Ram Ahluwalia weighed in on the latest tensions escalating between DCG and Gemini.

Tensions between Digital Currency Group (DCG) and its partner Genesis Global Trading have been escalating recently, with DCG’s crypto lending product pitched to smaller investors now in dispute. Gemini, the crypto exchange owned by the Winklevoss twins, has now terminated a key aspect of their relationship.

Lumida CEO and co-founder Ram Ahluwalia weighed in on the situation, pointing out that Genesis’ current financial woes are at the heart of the dispute. It has been reported that Genesis owes its creditors over $3 billion, prompting its parent company, Digital Currency Group, to look at asset sales to pay off the debt.

The Financial Times reported on Thursday that DCG is considering offloading some of its venture-capital portfolio, worth around $500 million. If a sale were to take place, it would go some way to helping Genesis pay off its creditors, which includes some of the biggest names in the crypto industry.

However, a sale of assets could also have some negative implications, with concerns over the potential implications for the liquidity of the overall market. The sale of venture capital portfolios could potentially lead to a decrease in venture capital investments, as investors become more cautious and pull back their capital.

It is unclear how the dispute between DCG and Gemini will be resolved, with the latter having been a prominent partner for Genesis for quite some time. It remains to be seen whether the two companies will be able to reach an agreement, or whether the situation will escalate further.

Whatever the outcome, it is clear that the dispute between DCG and Gemini has exposed the underlying financial issues at Genesis. Whether it is able to pay off its creditors remains to be seen, but the sale of assets could be the only way for it to do so. As the dispute between the two companies continues, all eyes will be on the crypto industry to see how it continues to evolve.