Genesis files for bankruptcy, FTX considers reboot and Bitzlato…

Top stories this week

Crypto lender Genesis files for Chapter 11 bankruptcy

FTX contagions continue to spread through the crypto industry, with Genesis Capital filing for bankruptcy protection in New York, estimating liabilities between $1 billion and $10 billion and assets at the same level. The company plans a “two-track process”, which will pursue “the sale, capital raising and/or shareholding transaction” and allow the company to “emerge under new ownership”. Genesis’ derivatives, spot trading, brokerage and custody businesses are not included in the proceedings, according to the company. In an effort to maintain liquidity, Genesis’ parent company, Digital Currency Group, suspended dividend withdrawals.

Iran and Russia want to issue a new gold-backed stablecoin

The Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new gold-backed stablecoin. The “Persian Gulf region token” would serve as a mode of payment in foreign trade instead of fiat currencies like the US dollar, Russian ruble or Iranian rial. The new cryptocurrency would operate in a special economic zone in Astrakhan, where Russia accepts Iranian cargo shipments.

The co-founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are trying to raise funds for a new cryptocurrency exchange in partnership with Coinflex co-founders Mark Lamb and Sudhu Arumugam. According to a pitch deck, they are looking to raise $25 million. The new exchange will be called GTX and will target claims against bankrupt businesses, allowing customers to use claims as collateral for transactions. The initiative has drawn criticism from the crypto community.

Winners and losers

At the weekend, Bitcoin (BTC) is at $21,856Ether (ETH) at $1,621 and XRP at $0.40. The total market capitalization is $1.00 trillion, according to at CoinMarketCap.

Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week are Frax Share (FXS) at 67.88%, Hedera (HBAR) at 45.32% and Convex Finance (CLC) at 44.01%.

The top three altcoin losers of the week are Gala (GALA) at -8.20%, Huobi token (excl. tax) at -6.34% and Trust Wallet Token (TWT) at -3.47%.

For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

Most Memorable Quotes

“Crypto is getting very interesting because we’re finally starting to see the regulatory bear come into play and I think long term that’s a good thing.”

Kevin O’Learyventure capitalist

“I actually thought he (Sam Bankman-Fried) was the Mark Zuckerberg of crypto. I didn’t know he was the Bernie Madoff. And it’s something that I have to own. And so I own it.

Antoine Scaramuccico-founder of SkyBridge Capital

“What I’d like to do is see the CFTC and other regulators provide more guidance this year and I’m hopeful that maybe we’ll see more clarity in the United States.”

Caroline PhamCommissioner of the Commodity Futures Trading Commission (CFTC)

“Bitcoin just became a 24/7 VIX. It’s just a trading vehicle for big funds that want to get in and out of risk on weekends and overnight trading hours.

Jeff DormanInvestment Director at Arca

“The massive business of digital currencies (from the central bank) is not worth the costs and risks.”

Tony Yatesformer senior adviser to the Bank of England

“I don’t think DeFi is supposed to attack TradFi. DeFi is meant to complement TradFi, at least initially.

Emin Gun Sirerco-founder and CEO of Ava Labs

Prediction of the week

Bitcoin Eyes $21.4,000 Zone As Analyst Predicts BTC Price Will Chase Gold

Bitcoin hit new multi-month highs with BTC/USD preserving support at $21,000, according to data from Cointelegraph Markets Pro and TradingView.

Prices passing through support or resistance affect sentiment, but the trading range is well defined, noted on-chain analysis resource Material Indicators. “I view the lack of BTC liquidity below $18,000 and above $23,000 as a lack of sentiment for these levels at this time,” the company wrote on Twitter.

FUD of the week

Silvergate Reports Net Loss of $1 Billion in Q4 2022

Silvergate Bank announced a net loss of $1 billion attributable to common shareholders in the fourth quarter of 2022. The digital asset bank saw large deposit outflows in the last quarter of 2022, mainly due to its relationship with FTX and Alameda Research. Silvergate is facing a class action lawsuit over its dealings with crypto firms. Among the measures taken by the bank to maintain cash liquidity were wholesale funding and the sale of debt securities.

Crypto lender Nexo Capital has agreed to pay $45 million in penalties to the United States Securities and Exchange Commission and the North American Securities Administrators Association for failing to register the offering and sale of its Earn product Interest. According to the company, regulators have not alleged any fraud or deceptive marketing practices. On January 12, Bulgarian prosecutors began searching Nexo’s Bulgarian offices for alleged involvement in a large-scale money laundering scheme, as well as violations of Russia’s international sanctions.

CoinDesk could be up for grabs as parent company DCG scrambles to secure funds

A potential sale of cryptocurrency medium CoinDesk is being considered by parent company Digital Currency Group. Lazard’s investment bankers help the company evaluate options, including a full or partial sale. DCG has reportedly received several offers exceeding $200 million for the media company in recent months. DCG’s venture capital portfolio includes 200 crypto-related companies.

Best Crypto Features

How to Stop AI from ‘Wrecking Humanity’ Using Blockchain – Cointelegraph Magazine

Ben Goertzel has dedicated his life to the development of a general artificial intelligence – and explains how he plans to massively evolve the blockchain to control it.

Crypto Mason Death Threats from Maxis: Hall of Flame

Crypto Mason is only 22 years old, but he already has over a million social media followers. And why did Lark Davis block it?

The metaverse is not the endgame, but the “ongoing digital transformation”: Davos 2023

Leaders of the Web3 space gathered at the World Economic Forum in Davos to discuss early results from the “Define and Build the Metaverse” initiative.

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Editorial team

Cointelegraph Magazine writers and reporters contributed to this article.