The earthquake in the crypto world triggered by the fall of FTX spreads doubts to the sector. All eyes are now on the Genesis broker, at risk of bankruptcy if it fails to raise new capital. The firm has been looking for days to raise 1,000 million dollars. Despite capturing the interest of Binance, so far nothing has materialized.
Genesis has experienced a liquidity crisis in recent days due to the withdrawal of funds from clients, alarmed by FTX. He even stopped the withdrawals after acknowledging that he has 175 million blocked on the already broken platform. "At the moment we do not plan for an imminent bankruptcy," a company representative told Bloomberg.
In any case, the crisis also threatens BlockFi and Gemini, from the Winklevoss twins, who once accused Mark Zucekerberg of stealing their idea for Facebook. In Gemini, certain withdrawals of a product with 700 million dollars of savers have also been stopped.
The doubts led investors to punish Coinbase on the stock market, which left 9% on Wall Street. So far this year it has lost more than 80% of value. Thus, it is at historical lows. "We trust that Coinbase is not another FTX. But that does not make it immune to the crypto ecosystem," they said from Bank of America.
For Cathie Wood, in charge of Ark Investment Management, it is an opportunity: the investor has triggered the purchase of Coinbase shares and already owns 4.7% in circulation.
Other firms with exposure to the sector, such as Marathon, MicroStrategy, Core Scientific or Riot Blockchain fell by up to 10%.
In the cryptocurrency market the situation is no better. Bitcoin, the most important, deepens its falls and is trading below $16,000, with a 67% drop in 2022 and at a two-year low. Ed Moya, an analyst at Oanda, states in a note that if the $15,500 level is lost there would be no support until $13,500 and from there the $10,000, psychological high.
Ethereum and Cardano follow suit, with even higher figures: they lose 70% and 78% in the year.
