Genesis Global, a subsidiary of Digital Currency Group, has ceased all of its crypto trading activities post-bankruptcy.
Genesis Global, a once-significant participant in the cryptocurrency trading industry, has announced its intention to exit the market altogether.
Genesis Global Discontinues Trading Activities
This decision follows the company’s earlier decision to discontinue its spot trading services. Now, it’s stopping all trading activities through GGC International Ltd, signifying the end of an era for one of the prominent players in the cryptocurrency industry.
Genesis, a Barry Silbert’s Digital Currency Group (DCG) subsidiary, once dominated the crypto derivatives market. However, this most recent announcement signifies a significant change in the company’s trajectory.
This decision can be traced back to January, when another Digital Currency Group subsidiary, Genesis Global Holdco, declared bankruptcy. Genesis Global Holdco was a well-established crypto-lending platform, so this decision sent shockwaves through the industry.
After the failure of its affiliate, Genesis analyzed its business and determined to make challenging decisions. “This decision was made voluntarily and for business reasons,” explained a Genesis representative. The modification is a component of a larger strategy to realign the company’s efforts and resources.
Exit Strategy For The Genesis Market
The organization is swiftly implementing these changes. GGCI (GGC International Ltd) will promptly stop offering derivatives trading. According to a memo from Bloomberg News, spot trading services will terminate on September 21, 2023.
Considering Genesis’ historical prominence, this abrupt exit from the market is astonishing. Since its founding in 2013, the company has played an important role in the cryptocurrency industry.
According to its website, it has handled $116.5 billion in spot trading over the years, making it one of the leading institutional derivatives desks by trading volume. The company traded approximately $18.7 billion worth of derivatives in the previous year’s third quarter.
Genesis’s withdrawal from crypto trading services has repercussions for the industry. It highlights the volatility and uncertainty that continue to envelop the cryptocurrency market.
Although internal factors influenced Genesis’s decision, it reflects the broader challenges encountered by businesses in this industry, including regulatory scrutiny and market fluctuations.
