It bridges the gap between institutional investors and cryptocurrencies, with the most prominent cryptocurrency companies under its umbrella. Bad news tonight. The 2022 bear market that is poised to launch has put all cryptocurrency companies in trouble, and DCG is one of them. The continued bankruptcy of Genesis still worries investors.
Last Minute Cryptocurrencies
Digital Currency Group (DCG) is shutting down its trade execution and prime brokerage service, TradeBlock, citing the cryptocurrency winter and regulatory uncertainty. A DCG spokesperson said in a statement that the platform, which provides trading services for institutional investors, will close on May 31. The statement is as follows:
“Due to economic conditions and the prolonged cryptocurrency winter, as well as the challenging regulatory environment for Crypto assets in the United States, we have decided to close the institutional trading platform aspect of the business, TradeBlock, effective May 31, 2023”.
Crypto giants are bleeding
CoinDesk Inc., a cryptocurrency media and events company, is also controlled by DCG. It acquired TradeBlock in an undisclosed deal in 2020. CoinDesk acquired the index business, and the remainder was later distributed as the TradeBlock trading platform. Now the institutional trading desk is closing. DCG, which failed to repay $600 million of its debt on Friday, is already battling a number of problems.
- Due to the current state of cryptocurrency, it requires liquidity and cannot find new funds.
- Genesis is currently in bankruptcy proceedings because it can’t pay its many creditors, including Gemini. The process is not yet complete.
- Likewise, GBTC, a bitcoin mutual fund issued by DCG subsidiary Grayscale, trades at a negative premium to investors. The company’s bitcoin ETF lawsuit with the SEC continues.
DCG will continue to bleed if the cryptocurrency market doesn’t rally significantly in the short term, or if Grayscale doesn’t declare an early victory in its legal battle. DCG has been rumored to be trying to sell several of its subsidiaries, including CoinDesk, since late last year.
The bankruptcy of DCG, the largest umbrella company in the cryptocurrency space, could cause more damage to the market than the FTX debacle.
Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Fatih Uçar, without permission, may not be reproduced