Crypto Guides, Knowledge & Insights

Genesis' Crypto Trading Division Is Transferring Money Around, a Signal of Normalcy

Early in 2022, falling prices started to snowball into a landslide when Terras stablecoin network collapsed, affecting the massive hedge fund Three Arrows Capital, which then foreclosed on its creditors in the linked crypto realm, sparking a credit crisis. Genesis, which already joins companies like Voyager Digital and Celsius in declaring bankruptcy, found that the failure of FTX and Alameda Research was simply too much to bear.　　Genesis cryptocurrency loan operation sought bankruptcy proceedings protection, but its trading division, which remained outside of Chapter 11, continued to move money about on blockchains, indicating that the operation still was operating at least partly normally.　　　　Blockchain information gathered by Etherscan shows that on Thursday, the day of the bankruptcy case, a wallet managed by the Genesis OTC trading desk delivered around $125 million in ETH, FTM, and USDT to Coinbase, Binance, Bitstamp, and Kraken. The wallet has made a number of more transactions in the last few hours, receiving nearly $50 million USDC.　　Its still early to tell how the bankruptcy of Genesiss lending organizations will end up affecting the spot and derivatives businesses, but the moves are consistent with holding company Digital Currency Groups (DCG) assurance that the Genesis trading business will “continue to

2023-01-24Deep Dive

What is the difference between IPO, ICO, ISO, STO?

An Initial Public Offering (IPO) is the process by which a private company raises capital by selling shares to the public on a stock exchange. This allows the company to raise money while also giving investors an opportunity to own a piece of the company.　　An Initial Coin Offering (ICO) is similar to an IPO, but instead of issuing shares, the company issues digital tokens or coins, which are typically based on blockchain technology. These tokens can be used to buy goods or services within the companys ecosystem or can be traded on cryptocurrency exchanges.　　An Initial Stablecoin Offering (ISO) is similar to an ICO, but instead of issuing tokens, the company issues stablecoins, which are digital assets that are pegged to a fiat currency (such as the US dollar) or a commodity (such as gold). These stablecoins can be used to buy goods or services within the companys ecosystem or can be traded on cryptocurrency exchanges.　　A Security Token Offering (STO) is a form of fundraising similar to an ICO, where a company issues digital tokens that are backed by a tangible asset, such as a share of stock in the company. These tokens can be traded on a blockchain and are

2023-01-22Deep Dive

Who controls cryptocurrencies?

Cryptocurrencies, such as Bitcoin and Ethereum, are decentralized digital assets that operate on a peer-to-peer network, meaning there is no central authority controlling them. Instead, they rely on complex algorithms and cryptography to secure transactions and ensure the integrity of the blockchain, the digital ledger that records all cryptocurrency transactions.　　One of the key features of cryptocurrencies is that they allow for direct, peer-to-peer transactions without the need for intermediaries like banks or governments. This is made possible through the use of public and private key encryption, which ensures that only the parties involved in a transaction have access to the funds.　　While there is no central authority controlling cryptocurrencies, there are a few key players who play important roles in their development and operation. These include:　　Miners: Miners are individuals or groups of individuals who use specialized hardware to validate and record transactions on the blockchain. They are rewarded with small amounts of the cryptocurrency for their work.　　Developers: Developers are responsible for creating and maintaining the software that runs the cryptocurrency. They often work on open-source projects, meaning the code is freely available for anyone to use and contribute to.　　Exchanges: Exchanges are platforms where users can buy and sell cryptocurrencies. They often

2023-01-21Deep Dive

Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing

According to bankruptcy court filings submitted by interim CEO Derar Islim, cryptocurrency lending firm Genesis held $5.1 billion in liabilities in the weeks following its withdrawal halt last November.　　In his first-day motion in the United States Bankruptcy Court for the Southern District of New York, Islim detailed Genesis financial situation prior to its restructuring. Genesis HoldCo, Genesis Global Capital LLC, and Genesis Asia Pacific PTE. LTD filed for Chapter 11 bankruptcy protection late Thursday, becoming the third crypto business to be swept up in the immediate aftermath of FTXs downfall.　　Those entities may have been less harmed by direct losses to FTX and sister company Alameda than by the “run on the bank” that Islim claimed their failure triggered. Customers requested repayment of $827 million in loans, pushing Genesis lending units to halt withdrawals.　　“At the same time, Holdcos corporate parent, Digital Currency Group (DCG), and its various subsidiaries, including DCG International Investments Ltd., were impacted by the market turmoil and did not have the liquidity to repay the Company on certain loans, adding pressure to the Debtors balance sheets,” Islim explained.　　At least part of the liquidity crisis started months earlier, thanks to Genesis $1.2 billion loss to crypto hedge fund Three

2023-01-21Deep Dive

What are some of the benefits of an ICO?

An initial coin offering (ICO) is a fundraising method used by companies and projects in the blockchain and cryptocurrency space. In an ICO, a company or project issues digital tokens that can be bought by investors using cryptocurrency. These tokens can then be used to access the companys product or service, or they can be traded on cryptocurrency exchanges.　　There are several benefits of investing in an ICO, including:　　The potential for high returns: Because many ICOs are for start-ups or early-stage projects, there is a higher potential for returns on investment than with more established companies. This is because the value of the tokens can increase significantly if the project is successful.　　Access to cutting-edge technology: Many ICOs are for projects that are using blockchain technology, which is a relatively new and rapidly evolving field. Investing in an ICO can give investors access to cutting-edge technology that they might not be able to access otherwise.　　Liquidity: Unlike traditional investments, tokens issued in an ICO can be bought and sold on cryptocurrency exchanges. This means that investors can easily convert their tokens into cash if they need to.　　Early access: Many ICOs have a discounted price for tokens during the early stages of the offering.

2023-01-20Deep Dive

Bahrain Gets Binance's Crypto Exchange Live

The worlds most well-known cryptocurrency exchange, Binance, has announced the establishment of binance.bh in a press release.　　Bahraini users will be able to purchase a variety of regulated products and services from Binance through the binance.bh platform and make withdrawals and deposits in their native currency.　　Top-ups and withdrawals in local currencies are among the products and services. Bahrain customers must connect their bank accounts with their binance .bh accounts in order to use this capability.　　　　　　Under the direction of the Economic Development Board and the Central Bank of Bahrain, this initiative, led by Binance, was carried out.　　After Binance said that it will be recruiting while other big exchanges drastically cutting staff, the news was announced. Bahrain has now become a part of Binances recent international expansion.　　Rasheed Al Maraj, governor of the Bahrain Central Bank, said:　　As part of the ongoing collaboration between banks and industry and sector leaders, the Central Bank of Bahrain (CBB) welcomes Binances decision to establish a regional headquarters for its Middle East operations in Bahrain. CBB aims to develop a supervisory framework that facilitates innovation and appropriate regulatory controls for encrypted asset trading service providers and their clients, based on global trends and developments in financial services.　　The boards CEO,

2023-01-20Deep Dive

Account Compromise Due to Yuga Labs Mailchimp Loophole

Mailchimp has disclosed that they were the target of a breach that gave Yuga Labs account access. The NFTs itself, however, are secure, according to Yuga Labs.　　A recent statistics hack at email marketing and platform Mailchimp resulted in the account of Yuga Labs being compromised. On January 19, a tweet about the incident was sent by the well-known NFT firm, which also runs Bored Ape Yacht Club, Meebits, CryptoPunks, and other websites.　　　　Yuga Labs acknowledged that it had only sometimes and “for limited purposes” was using the services, but out of an abundance of caution, it wanted to share the data. There is no evidence that any data was transferred, although they did state that “an unauthorized actor may have accessed data in our account.”　　Additionally, Yuga Labs disclosed that the Mailchimp accounts data only came from a small-scale email campaign. It was unrelated to the actual minting of NFTs.　　The business informed the neighborhood that they would only get in touch with pertinent people using a Yuga Labs email account if they thought their data had been affected. They highlighted the need for consumers to utilize caution.　　Mailchimp was hacked (Again)　　The compromise was discovered by Mailchimp security to have happened on January 11.

2023-01-20Deep Dive

The bankruptcy team, according to Sam Bankman-Fried, is mistaken about FTX US's insolvency.

Discredited ex-CEO Sam Bankman-Fried disputes numerous assertions from the FTX bankruptcy reorganization group that millions of dollars worth of client cash are gone from both the international and U.S. exchanges.　　John Ray, the reorganization CEO of FTX who also supervised Enrons bankruptcy, delivered a speech yesterday to the organizations committee of debt holders. Only $181 million in FTX US money had been discovered after what Ray called a “Herculean investigative effort.” It claims that after FTX filed for Chapter 11 bankruptcy on November 11, half of those funds were taken from purses in “unauthorized transfers.”　　　　“These claims by S&C are wrong, and contradicted by data later on in the same document,” Bankman-Fried mentioned Sullivan & Cromwell, the team of lawyers behind the presentation, in a Substack newsletter. “FTX US was and is solvent, likely with hundreds of millions of dollars in excess of customer balances.”　　Bankman-Fried has recruited a team of lawyers to defend his rights in the Delaware FTX bankruptcy case. Bankman-Fried is currently placed under house arrest and is accused of eight economic offenses related to the bankruptcy of FTX. But despite this, he continues to publicly refute statements made by the reorganization team and distribute pictures of spreadsheets he claims

2023-01-20Deep Dive

Authorities start seizing Bitzlato Exchange, and its founder is detained in Miami

The creator of the Russian cryptocurrency exchange Bitzlato, Anatoly Legkodymo, was detained in Miami for operating an illegal business, according to a statement from the Department of Justice (DoJ).　　According to the report, Bitzlato actively promoted cryptocurrency crime. U.S. Breon Peace, an attorney, offered his thoughts on Legkodymos capture. “Institutions that trade in cryptocurrencies are not above the law and their owners are not beyond our reach,” the statement reads.　　The Department of Justice was able to take down the Chinese laundering money enterprise, which specialized in a variety of illegal behavior, with the help of an international investigation team and community resources in the United States. “Todays measures send the unmistakable message: whether you break our laws from China or Europe—or misuse our financial system from a tropical island—you can expect to answer for your crimes inside a United States courtroom,” stated Deputy Attorney General Monaco.　　A public key for cryptocurrency crime is Bitzlato.　　According to reports, Legkodymo ran Bitzlato, one of the biggest crypto-crime exchanges. The exchange was primarily used by crooks to transport money from drug trade and launder cryptocurrency from malware infections. Users of the Honk-Kong registered exchange had to provide very little identification. without the requirement for significant know-your-customer

2023-01-20Deep Dive

Layoffs Confirmed by ConsenSys

According to CEO Joe Lubins blog post published on Wednesday, the Ethereum development firm ConsenSys will eliminate 97 positions. This mostly confirms a story published by CoinDesk the previous week.　　“Today we need to make the extremely difficult decision to streamline some of ConsenSys‘ teams to adjust to challenging and uncertain market conditions,” said Lubin. “This decision will impact a total of 97 employees, which represents 11% of ConsenSys’ total workforce.”　　According to a blog post published on Wednesday by ConsenSys CEO Joe Lubin, the firm will eliminate 97 positions over a period of 12 to 36 months. The extension of health coverage in pertinent jurisdictions and individualized assistance from an outside recruitment company are also promised, according to the statement.　　ConsenSys, which has its headquarters in New York City and presently employs roughly 900 people, is just one of several cryptocurrency businesses that have been forced to lay off staff as a result of the companys ongoing bear market, which is thought to have cost 27,000 jobs since April.　　Lubin emphasized ConsenSys financial stability by adding that the painful decision to streamline would direct the companys strategy around its core products and the investigation of fresh possibilities in Web3 commerce as it matures

2023-01-20Deep Dive

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