When I asked them can they be really sure that same thing won't happen with Binance, they told me that even if something happens to Binance, prices will go down so much that it won't matter anyway.
Nonsense. We've just had more than a dozen exchanges or other centralized platforms collapse, and the price is pretty much at a six month high. If Binance collapses then sure, there will be short term price fluctuations, but bitcoin will come out the other side just fine, just as it always does.I guess in the end people will keep doing what they have been doing. Be it with fiat / crypto or whatever.
Yup, it's an absolute mess. And of course, that doesn't even scratch the surface, since you can easily add on dozens of other exchanges to that diagram and there will be hundreds of deals and arrangements going on that we have no idea about. And of course with fiat or any bitcoin you don't keep in your own wallet, then any money you "own" is somewhere in all that mess, handed over to who knows who for who knows what.Perhaps we could make a similar diagram for self custody. It would be very simple. It would look like this:
| - | - - - - - - - - | - | |
| - | - | ||
| - | My wallet
The whole cycle of leverage in the crypto market with the participation of Genesis:  It is noteworthy that the FUD around Genesis does not subside, and Bitcoin does not react at all to this, on the contrary, demonstrating abnormal growth. Hope you don't mind I replaced the image you had with a slightly different one. Still gives the same information. This kind of crap is what brought BTC into existence. People moving money that did not exist and loaning money that did not exist so people could invest in things that should not have been invested in. Then the economy imploded. I guess in the end people will keep doing what they have been doing. Be it with fiat / crypto or whatever. -Dave Certain percentage probably removed their money after everything that has happened in the recent period, but majority will just continue business as usual. I know people who lost money on both Celsius and FTX and they still are still staking significant amount of money on Binance, being absolutely sure that Binance is safe and nothing will happen. When I asked them can they be really sure that same thing won't happen with Binance, they told me that even if something happens to Binance, prices will go down so much that it won't matter anyway.  And those people are not newbies at all.Like you said; your friend doesn't want to take responsibility, same as everyone who uses third party company and the companies are not exempted in this circle. Look at Genesis, they didn't take responsibility of going bankrupt, they have pointed out lots of businesses like; Three arrow capital, FTX and their dispute with gemini, as contributors to their downfall. The issue with these centralized firms is, they don't stay independent. They're all linked to one another such that when one fails a lot more of firms would have a dispute or two. Hence, considering people's trust on Binance exchange, that may not happen, if Binance should file for bankrupcy today, they won't take responsibility for their faults, you'll discover new brands associated to their failure. In a nutshell, these people are like minded both their clients, they want to blame others for losing money in the cryptocurrency market. So, no need to worry about them it's the lane they want to follow. I still dont get it why you would trust em with all of ur coins. There were so many numerous examples that showed that it should be taken with a grain of salt.... especially platforms/exchanges that were very established -> see FTX. For some its simply because of greed and they are willing risk it all for a couple of %, even though they are aware of the risk. Then there are those that don't want any responsibility when to comes to storing crypto and will rather chose someone else to do it for them. I mentioned before that I know a guy (friend of a friend) who is an old school stock trader so naturally he wanted to profit from bitcoin too but instead buying it by himself and storing it in his wallet he rather invested via Grayscale. I naturally asked him why he doesn't want to own his own Bitcoin, he said that he just doesn't want that responsibility.If bitcointalk is the only place where you communicate with people that are into crypto you may get impression that's how it is in the rest of crypto community while in reality vast majority don't really care about being your own bank and the rest of the things that Bitcoin is all about, therefore such situations like the one with FTX. The news article came after this. And that matters how exactly? FDIC or your cold wallet! Im with you at point 2. FDIC shouldnt be an option for a real Bitcoiner! At least, that will not have been the basic idea. Probably I should have added a bit more on that. He said user, the moment you qualify as a user you're somebody who at least buys coins from that exchange or sells them, so you either send $ to that exchange to buy some coins, or send coins, sell them and wait for the $ to hit your bank account! The FDIC insurance was for the time you have $ in that exchange, the be your own bank is when you grab the coins as soon as possible and you stuff them in your wallet, but that won't help you if you're having only $ on that CEX waiting to buy the dip or whatever when it goes down. So, extended version, FDIC for fiat, cold wallet for coins!
This information was somehow leaked earlier and first reported in a Twitter account. Here is the link
https://twitter.com/ap_abacus/status/1615697548307472384?s=46&t=5Zg4eYML_VzeZMNrkU_R4g The news article came after this. Users should protect themselves by not giving custody of their own coins and stop treating centralized crypto platforms as banks because they simply aren't. This. I still dont get it why you would trust em with all of ur coins. There were so many numerous examples that showed that it should be taken with a grain of salt.... especially platforms/exchanges that were very established -> see FTX. Companies file bankruptcy to protect themselves!!! Well who protects users then? FDIC or your cold wallet! Im with you at point 2. FDIC shouldnt be an option for a real Bitcoiner! At least, that will not have been the basic idea. As tragic as such events are, but perhaps it always flushes some people who pursue Bitcoin only for profit from the cosmos! I wrote Gemini in the title while thinking about Genesis (for some reason I keep confusing those two). There was so much noise about their investigation when both of them got accused, the whole thing with Geminign Earn that was earning on Genesis actually, lol, that is no surprise you can get those messed up! My first impression was that they managed to drag down Gemini too with their mess, that would have been another event we could have lived without, that's why the surprised Pikachu face! But thinking now, so be it, the less stupid so called exchanges that try to act more like banks and investors brokers we have the better! Companies file bankruptcy to protect themselves!!! Well who protects users then? FDIC or your cold wallet! These are really strange laws!! Companies file bankruptcy to protect themselves!!! Well who protects users then? Users should protect themselves by not giving custody of their own coins and stop treating centralized crypto platforms as banks because they simply aren't. Maybe this might wake up some of the people who bleat on about Coinbase or Binance being safe because they are large exchanges. Well, DCG is huge, and currently two of its subsidiaries are on the brink of collapse. Certain percentage probably removed their money after everything that has happened in the recent period, but majority will just continue business as usual. I know people who lost money on both Celsius and FTX and they still are still staking significant amount of money on Binance, being absolutely sure that Binance is safe and nothing will happen. When I asked them can they be really sure that same thing won't happen with Binance, they told me that even if something happens to Binance, prices will go down so much that it won't matter anyway. And those people are not newbies at all.
I mean, they tweeted months ago that they had lost significant amounts of money to FTX:
As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities. And then a week later, they suspended all loan activities: Our #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business. If those weren't enough red flags to make you withdraw all your money and you've now lost coins due to this bankruptcy filing, then I don't really know what to tell you. I have a bridge to sell you? Also note that CoinDesk, another subsidiary of DCG, is also being put up for sale. Maybe this might wake up some of the people who bleat on about Coinbase or Binance being safe because they are large exchanges. Well, DCG is huge, and currently two of its subsidiaries are on the brink of collapse.
Yes, I read the disturbing news on a number of social media sites as well as on CoinDesk:
https://www.coindesk.com/business/2023/01/17/crypto-conglomerate-dcg-suspends-dividends-amid-distress-at-genesis-unit/ Quote Bloomberg just reported that Genesis is preparing to file Chapter 11 bankruptcy ”???!!!These are really strange laws!! Companies file bankruptcy to protect themselves!!! Well who protects users then? I knew we were not going to get over the fallout from the FTX crash any time soon, more companies would end up soon. Do they have any exposure on FTX? There was an infographic showing all the companies exposed on that platform, but I don't find it. It took them longer than usual, so the fall will be nice or it may not happen because the negotiations mean that the parties are on an acceptable way to talk and the situation is not catastrophic as it happened with FTX. Yeah, Genesis was exposed to FTX. The platform was said to have $175 million stuck in FTX. But even before the FTX bankruptcy, which forced Genesis suspending withdrawals, it has already suffered a lot from the 3AC fiasco. Accordingly, 3AC owed Genesis at least $500 million. As a matter of fact, Genesis filed a $1.2 billion-claim against 3AC. So, in conclusion, this filing of bankruptcy is somehow long overdue for the platform. Problems, big problems, are simply adding up quite fast. The crypto winter, the series of bankruptcies to which they are exposed, and recently the SEC's filing of case against it, among others are simply too much for the company to contain. Anyway, this is just a part of the overall domino effect. And now, Gemini is also alleging that Genesis owes them almost a billion, a huge amount that will certainly affect the former's business operations as well.
Do they have any exposure on FTX? There was an infographic showing all the companies exposed on that platform, but I don't find it.
It took them longer than usual, so the fall will be nice or it may not happen because the negotiations mean that the parties are on an acceptable way to talk and the situation is not catastrophic as it happened with FTX. I'm confused! Isn't Genesis that is preparing for bankruptcy? ! Yes it is. Gemini Trust is just acting like a middleman between its users and Genesis. Its "Gemini Earn" was lending coins through Genesis. But they stopped that since. Gemini is out of this news Isn't Genesis that is preparing for bankruptcy? Genesis is part of Digital Currency Group (DCG) they are not related to Gemini Trust! There is an active investigation on the two of them over unregistered securities sales but that's a different thing!
I'm confused!
Isn't Genesis that is preparing for bankruptcy? Genesis is part of Digital Currency Group (DCG) they are not related to Gemini Trust! There is an active investigation on the two of them over unregistered securities sales but that's a different thing!
Bloomberg just reported that Genesis is preparing to file Chapter 11 bankruptcy so it seems like yet another crypto company might bite the dust. I don't think that anyone is surprised about this developement after everything that has happened lately and are probably not the last one that will go down in the near future. The only question is who will be the next.
Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, according to people with knowledge of the situation. The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it may need to file for bankruptcy if it fails to raise cash, Bloomberg previously reported. Representatives at Genesis Global Capital didn’t immediately respond to requests for comment. A representative for DCG declined to comment. Talks are ongoing and plans could change, the people added. Jump to:
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