Crypto proponent and CEO of Galaxy Digital, Mike Novogratz, commented on the fiasco between two industry participants – Digital Currency Group (DCG) and Gemini – and how it will affect the entire market.
The American investor noted that although the issue “isn’t good news” for the industry, it won’t involve massive selling that will affect crypto prices as it plays out over the next quarter.
The DCG-Gemini Fiasco
Recall that the DCG debacle started in the wake of FTX’s insolvency in November 2022. Shortly after FTX filed for bankruptcy, Genesis halted users’ withdrawal, citing “extreme market dislocation and loss of industry confidence caused by the FTX implosion.”
The liquidity crunch also caused Genesis’ business partner Gemini to halt withdrawals from its lending platform. According to reports, Genesis owes Gemini Earn’s users over $900 million. Since then, problems have been piling up for Genesis and its parent company, DCG.
Earlier this week, Gemini co-fou
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