logo

Decentraland going down? Thanks to Genesis

Decentraland going down Thanks to Genesis

TL;DR Breakdown

  • Decentraland defended its Genesis position of approximately $7.8 million on Twitter.
  • Market participants like Larry Cermak from The Block questioned the platform’s position and impact on their treasury.
  • The 3D virtual world browser called for its investors to remain confident and that other claims were inconsistent and out of context.
  • Bitvavo, Bybit, and Gemini also cast concerns about the restructuring process and the mode of repayment.

Decentraland, Gemini, Mirana, and Abra are some of the most recognizable names in Genesis creditors. Genesis filed for chapter 11 bankruptcy protection for some of its subsidiaries in the United States after months of consultations with financial experts and creditors.

Genesis was the world’s largest lending crypto company whose services entailed complex collateral strategies.

Like FTX, the Genesis creditor list displayed how intertwined the crypto industry is. Gemini, for instance, topped the list at $765 million, and Bybit and Babel at $150 million each.

Gemini CEO Tyler Winklevoss had earlier shared his frustrations with the restructuring process at DCG, Genesis’s parent company, accusing its CEO Barry Silbert of defrauding over 340,000  Gemini earn investors.

Others, like Bitvavo, Bybit, and Decentraland, assumed a defensive position to prevent panic among their investors. Such moves are not new in the crypto industry; before FTX collapsed, CEO Sam Bankman-Fried (SBF) shared they had adequate reserves and willing investors to stay afloat. Terra Luna’s Do Kwon also made similar remarks.

Are these crypto platforms bluffing, and is it reason enough to cause panic among investors?

Decentraland- Genesis situation

Following Genesis’s bankruptcy filing, Decentraland defended its Genesis position on Twitter.

According to the tweets, the Decentraland had a credit of approximately $7.8 million against Genesis. They further reiterated the credit had no significant impact on their treasury.

Decentraland DAO treasury is on-chain and has no direct connection to the firm. The 3D virtual world browser called for its investors to remain confident and that other claims were inconsistent and out of context.

The statement did not stop other players from casting doubts about the situation. Larry Cermak, VP of research at The Block, questioned the possibility of Decentraland keeping all their money in Genesis.

Decentraland going down? Thanks to Genesis 1

At press time, Decentraland funds treasury was composed of 38,484,491.023 MANA, 1,282,002.292DAI, 3,035.773 USDC, 40.477 MATIC, 34.558 ETH, and 25.389 WETH totaling to approximately $300 million.

Ben Zhou, CEO, and co-founder of Bybit, also came out on Twitter to defend their Mirana position in Genesis. According to Zhou, out of the $150 million reported, $120 million were collateralized positions that Mirana had already liquidated. He also reiterated that the Bybit client’s funds and the Bybit earn product did not use Mirana. 

Gemini’s Winklevoss said that Genesis filing for bankruptcy was a step forward in recovering his customer’s funds. He also hinted at taking legal action against Barry Silbert and DCG, saying that the bankruptcy did not insulate the two from taking account of their wrongdoing.

Market analysis

Following the Genesis bankruptcy filing, MANA, the Decentraland native token, went up 18% in 24 hours to $0.7374. Analysts attribute the surge to the crypto market’s bull run, which pushed the market valuation to $1.04 trillion. Bitcoin and Ethereum also displayed similar runs crossing the $22,000 and $16,000 marks, respectively.

Decentraland going down? Thanks to Genesis 2

At press time, the MANA has ranked forty ahead of Aave, SAND, FLOW, and EOS, with a market capitalization of $1.37 million.

The crypto market sentiment was enough to break the critical resistance at $0.40.

We can deduce dropping price momentum from the MACD histogram through chart strategy analysis. The 14- day Relative Strength Index (RSI) shows that MANA has traded in overbought territory for the last week; therefore, a price reversal is imminent.

Short term, we anticipate MANA’s price to correct from the sharp weekly uptrend. The Genesis role will also be integral for a long time as they restructure to make their creditors whole.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Brian Koome

Brian Koome

Brian Koome is a cryptocurrency enthusiast who has been involved with blockchain projects since 2017. He enjoys discussions that revolve around innovative technologies and their implications for the future of humanity.

Related News

Hot Stories

Cardano price analysis: ADA falls to $0.3800 support, what is next for the crypto?
TRON Academy Sponsors Princeton Blockchain Club and Partners with TRON Climate Initiative
Is Solana Dead? SOL Resurrects at 114%
Filecoin price analysis: FIL shows bearish at $5.12 as selling pressure intensifies
Bitcoin sells at a 60% premium in Nigeria as the government shifts to a cashless policy

Follow Us

Industry News

Bitcoin sells at a 60% premium in Nigeria as the government shifts to a cashless policy
China's step towards cryptocurrency regulations
Read why Floki Inu supply is set to decrease by 4.2 trillion FLOKI tokens
Chinese central bank former exec explains why China is wary of crypto
Binance burns 16m worth of BNB tokens; transitions from the ERC20 version of BNB to BEP2

Add Your Heading Text Here