The head of the technology company Ava Labs noted the importance of the role of the crypto lender Genesis Global Capital in attracting new investors to the digital asset market.
Avalanche (AVAX) CEO John Wu said that the collapse of Genesis Global Capital poses a greater risk to the digital asset market than the collapse of the FTX exchange:
“Genesis was the biggest lender, it was just making loans. Now he is facing a liquidity crunch and may exit the market. Without it, the value chain of all crypto companies will be disrupted. Market makers who need to take out loans to support the market are deprived of the opportunity to raise capital. You will see how quickly liquidity leaves the markets, spreads widen, investors stop investing in the crypto industry and the circle closes. Genesis is a very important part of the cryptocurrency markets.”
The position of Genesis is getting worse every day. According to media reports, the Genesis Global Capital service has recently become the object of an investigation by US regulators in connection with the suspension of the withdrawal of funds and the company’s liquidity crisis.
Source: Bits
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