Would a Genesis Bankruptcy Actually Be Good for Crypto?

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 20 January 2023

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

Yesterday, news outlets started reporting that a prepackaged bankruptcy for DCG subsidiary Genesis was close to completion. On today’s episode, NLW looks at the community’s reaction on whether this would be a good or bad thing for the space. He also reviews news that FTX bankruptcy CEO John J. Ray III is open to restarting the exchange. (CoinDesk is an independent subsidiary of DCG.) Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26–28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Swoon” by Falls. Image credit: Cemile Bingol/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.3	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.3	The breakdown is produced and distributed by CoinDesk.
0:20.3	What's going on, guys? It is Thursday, January 19th, and today we're discussing whether
0:24.7	a Genesis bankruptcy might actually be good for the crypto industry. Before we dive into that,
0:30.6	however, if you are enjoying the breakdown, please go subscribe to it, give it a rating, give it a
0:34.3	review, or if you want to dive deeper into the conversation, come join us on the Breakers Discord. You can find a link in the show notes or go to bit.
0:40.7	ly slash breakdown pod. All right, friendos, we are back with another discussion of 2020
0:46.7	cleanup, although today's news, I would argue, could be a heck of a lot more bullish than it
0:53.0	might seem at first. So, of course,
0:55.6	one of the biggest outstanding questions after the fall of FTX has been how far the fallout
1:01.8	and contagion might go. And fallout there has been. For example, there has been a significant
1:07.6	chilling of the relationship between the crypto industry and the Washington
1:10.9	DC establishment. However, frankly, the main short-term thing that people have been worried about
1:16.2	is whether the collapse of FTX would cause other crypto-institutional failures. In that context,
1:22.1	the biggest spotlight has been on Genesis and its parent company Digital Currency Group or
1:27.0	DCG.
1:28.3	I say this every time, but DCG is also the parent group of CoinDesk.
1:32.2	Now, Genesis was hit hard in the Three Arrow's capital collapse.
1:36.3	They lost about $2.4 billion in loans out to the hedge fund, and ultimately ended up their
1:40.8	biggest creditor with a $1.2 billion claim after liquidating collateral.
1:45.6	That claim was eventually moved over to the books of DCG, a move which would later
	...

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