Reactions to Genesis Global Trading's Bankruptcy
Members of the cryptocurrency community expressed their opinions on the situation on social media shortly after the crypto lender Genesis Global Trading filed for protection under Chapter 11 of the United States Bankruptcy Code in the state of New York. Members of the crypto community shared their opinions on the most recent event in what appears to be an endless string of bankruptcies in the cryptocurrency space. These opinions ranged from the conviction that no one will be held accountable to the characterization of the entire concept of crypto lending as "stupid."
There are others who feel that bankruptcy attorneys will emerge victorious in each of these competitions.
A member of this group who identified themselves as a creditor of Voyager said that consumer cash would be used to pay the legal team one million dollars, and in the end, "no one will be held responsible."
Genesis has recently submitted its application for chapter 11.
Bankruptcy attorneys making profit on crypto bankruptcies.
— Coin Bureau (@coinbureau) January 20, 2023 Cameron Winklevoss, co-founder of Gemini, said that the bankruptcy is "excellent news" and a move toward Gemini subscribers receiving their money back. He referred to it as a "step."
However, a member of the community responded to Winklevoss' tweet by stating once again that the users are the only people who have been affected.
According to the user, Gemini is "also as culpable" for not doing enough research on the manner in which Genesis does business before to forming a partnership with the company. During this time, a crypto analyst drew up a diagram to show how crypto enterprises could have been linked during the current spate of bankruptcies that the sector has been experiencing.
The expert believes that the Genesis bankruptcy will shed light on the leverage cycle in the cryptocurrency market.
Some members of the community, who seem to be sick and weary of the negativity that surrounds the area, have stated their lack of faith in cryptocurrency firms.
A commenter on Twitter said that people couldn't trust firms located in the United States anymore since all of the companies were interconnected.
Billy Markus, the developer of Dogecoin (DOGE), also weighed in on the controversy, labelling the whole notion of cryptocurrency lending as "dumb" and referring to everyone participating in the practise as a "idiot."