Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It? - Ep. 429

Ram Ahluwalia, CEO and co-founder of crypto-native investment advisor Lumida, and Samuel Andrew, crypto author and analyst, talk about the financial situation at Genesis and parent company Digital Currency Group (DCG). The collapse of FTX has dealt crypto lender Genesis another major blow, with the firm halting withdrawals and DCG stepping in to help. Now the two face a range of suboptimal outcomes in the face of massive debts. Ahluwalia and Andrew discuss what could come next, and what should be learned from the recent debacles.

Show highlights:

why Genesis and DCG are so important for the crypto sector
Ram’s explanation of the “Grayscale trade” and why it is relevant to understand the current crisis
the ghost of Three Arrows Capital and the origins of Genesis’ problems
why Sam thinks Genesis was “reckless” in its loan underwriting
what a spot Bitcoin ETF would mean for Grayscale’s revenue
what options Genesis and DCG have to weather the storm
whether it makes sense for Genesis to file for bankruptcy
why Ram thinks Genesis lending product needs to be shut down
why Gemini and its Earn program loom large in the Genesis situation
the risks of enforcement action from regulators
what the most likely outcome is for Genesis and DCG and whether creditors will be made whole
whether there will be broader contagion stemming from Genesis and what other crypto companies could be in trouble
the problems of leverage and why crypto’s “shadow banks” need regulation

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