Crypto Brokerage Genesis Warns of Bankruptcy Without Funding(bloomberg.com)
bloomberg.com
Crypto Brokerage Genesis Warns of Bankruptcy Without Funding
https://www.bloomberg.com/news/articles/2022-11-21/crypto-firm-genesis-warns-of-possible-bankruptcy-without-funding
4 comments
I think you're assuming that crypto is anything but pyramid schemes and grift. I think the more realistic frame is "our ponzi scheme is collapsing please infuse some more money to give the important people more time to get out"
hypeee, the more massive failures in crypto the better off we are as a society
definitely cautiously optimistic that crypto will become largely irrelevant in the next few years, sadly most of the worst actors will still have profited and won't end up broke or in jail, but looks like at least some of them will
definitely cautiously optimistic that crypto will become largely irrelevant in the next few years, sadly most of the worst actors will still have profited and won't end up broke or in jail, but looks like at least some of them will
Don't hold your breath. I expect more high profile bankruptcies, strict regulation and the rise of self custody. It's an inevitable and critical phase to go through in order to move forward.
Anyone thinking of buying up Genesis should wait for them to declare bankruptcy, and _THEN_ buy them up when all their assets are cheaper. Why should I put in $1 Billion (or $500 Million, or whatever) into Genesis, when I could just buy up the remains for $300 Million later, for a better deal?
As the sink ships, its value drops more and more. There's no point throwing good money after bad money. Just wait for the bad money to go bankrupt first.
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Now lets say I'm "Foobar Cryptofirm" and I gave Genesis $100 Million last year. For Genesis to come up to me today, asking for more money makes me wonder where my old money has gone. Why would I throw even more money away to Genesis?
Well, maybe it can work out. If Genesis truly has enough assets that its "worth saving", then when they show me their books, it will be obvious. But I'd need strong assurances that Genesis would "make" my $100 Million back (in addition to whatever else I invest) to make today's investment worthwhile.
If I've lost hope in that $100 Million, then we're back to the first case, where I should just wait for Genesis to declare bankruptcy then buy its stuff later.