Market Update: November 23, 2022

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Investment bank Moelis has been hired by Genesis Global Capital to explore options that include bankruptcy. Due to its exposure to the bankrupt cryptocurrency exchange FTX, Genesis had spent the majority of November trying to obtain new money or work out a solution with creditors. Also previously disclosed by Genesis was the fact that its derivatives division had around $175 million in locked funds in its FTX trading account. Genesis’s parent company, Digital Currency Group (DCG), added $140 million in equity to the business’s balance sheet. In addition, Silbert warned investors of a promissory note for $1.1 billion that is due in June 2032, pointing out that it relates to liabilities from Genesis resulting from the failure of Three Arrows Capital. According to the wall street journal, Silbert in a letter to investors said that the $575 million worth of intercompany loans are due in May 2023, and that DCG took out the loans like any other crypto firm would, “structured on an arm’s length basis and priced at prevailing market interest rates.” On November 16, Genesis stopped withdrawals from clients citing the impact of FTX’s bankruptcy filing. The immense collapse of FTX has affected companies like Genesis and BlockFi and raised concerns with other industry heavyweights, including DCG. DCG’s Foundry Digital bought 2 cryptocurrency mining facilities and other assets from Compute North. It also has an option to acquire a third facility that is under development. The transaction takes place amid rumours that DCG’s Genesis, whose Global Capital last week froze redemptions and new loan originations following FTX’s collapse, may be declaring bankruptcy. The deal includes, Two turnkey sites located in South Dakota and Texas, Intellectual property, including rights associated with MinerSentry, and much more.

Kunji research Market Update

As FTX CEO Sam Bankman-Fried and his colleagues disappeared from U.S policy circles, their absence led to a gap in the crypto industry political involvement. Part of that maybe filled by Binance.US. Binance.US decided to step in at the moment with its own political action committee, the Binance.US Innovation PAC. The committee was established with a file to the Federal Elections Commission dated Monday, even though the firm hasn’t yet disclosed its plans. The Federal Elections Commission received a file on Monday establishing the US Innovation PAC. Krishna Juvvadi, the head of legal of Binance’s U.S. division and a former top regulatory lawyer for Uber, is the designated treasurer. Federal campaign records show that Coinbase, one of Binance’s still-active competitors, founded a PAC early this year but has only donated $38,000 to date.

Magic Eden now supports startup NFTs worth $1.6 billion created on the ERC20 sidechain Polygon. Compared to the mainnet, Polygon makes transactions much faster and less expensive. For Web3-powered NFT-powered video games, the company views Polygon as a key platform. Magic Eden, the organization responsible for the Solana marketplace, places a lot of emphasis on Polygon. Some NFT elements are already used by metaverse games like Decentraland and The Sandbox in Polygon. By year’s end, the marketplace intends to incorporate Polygon assets.

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