The bankruptcies of companies in the crypto world does not stop. Today, it is the turn of Genesis, the giant of crypto loans. By now it seems that a very dangerous "domino effect" has been triggered.
Crypto world in turmoil. In the beginning, it was small companies that failed, and crypto proponents declared: “Well, let’s do some cleaning”.
In fact, that world had become a jungle in which it was not easy to find their way. In short, the good (if there was any) and the rotten (there was undoubtedly in abundance), were merging to the point that it would then be difficult to make distinctions.
But then it was also the more important companies that went into hard waters, or rather collapsed miserably like houses of cards.
Finally, it was real giants that collapsed, companies that had reached a value of tens of billions of dollars were pulverized. Indeed more: not even the dust remained.
In November, FTX collapsed and its creator, a certain Sam Bankman-Fried, entered the Guinness Book of Records for having become the man in the world who managed to lose the most fortune in the shortest time. It seems that in just a few months his assets, valued at 24 billion dollars, have disappeared to zero.
Naturally, in addition to his portfolio, that of one million customers was also wiped out.
And it is worth remembering how the "prestigious" Forbes magazine wrote in October 2021, i.e. only a year before the bankruptcy: "Bankman-Fried’s goal is to position his company as something safe and mature, despite being born only two years ago”.
It must be said that FTX was not the only Exchange to fail: it was simply the largest, but in 2022 there were thirty-two failed Exchanges.
If in November FTX collapsed, which was a cryptocurrency exchange platform, in December it was the turn of Core Scientific, a giant of the so-called mining.
Core Scientific accounted for 10% of the computational power of bitcoin. And even that, in its heyday, had come to be worth several billion dollars.
And we have arrived in January, to today, when the news that we expected, now imminent, arrives: namely the bankruptcy of Genesis Global Trading, another giant, this time in the crypto lending sector.
In short, it seems that a very dangerous domino effect is being triggered.
But the proponents of the crypto world have not changed their minds, they continue to be optimistic, and reiterate that it’s okay, it’s just cleaning up.
Well let me give them some advice, when they find some time, it doesn’t take much, they should read the short story "Seven Floors" that Dino Buzzati wrote in 1937.
Original article published on Money.it Italy 2023-01-19 18:19:15. Original title: Criptovalute: fallisce anche Genesis. Potrebbe scattare un effetto domino?
