Binance may finally reach out to Genesis Trading

Binance continues to portray itself as the industry’s next savior as it seeks to reach out to struggling companies.

Contrary to announced, Binance could help Genesis

Decidedly, the situation does not seem to be improving for Genesis. The lending company, currently in the process of restructuring to avoid bankruptcy, seems to be at rock bottom despite the many efforts made by its management team. While it refuses to cease its activity and seeks to take refuge behind a fundraiser, the involvement of the new crypto giant could come to change the game.

In an interview with Bloomberg, Binance CEO Changpeng Zhao returned to the situation of the crypto business. If, according to him, his exchange platform would have nothing to fear from the crisis, it would not be the same for Genesis. However, in the event of bankruptcy of the company, many other actors could have to go out of business in turn, in particular those concerned by the loans granted by the latter. Among the companies most vulnerable to the situation, the names of Gemini or Greyscale have already been mentioned.

In order to avoid another domino effect that could deal a severe blow to the industry, Binance has finally decided to reach out to Genesis. If we still do not know the terms of the rapprochement, the possibility of bringing him help has been confirmed by CZ.

I don’t want to reveal too much but we are in contact with almost everyone in the industry. Genesis is having difficulty with its liquidity, our team is in the process of supporting it. I don’t know all the details and I’m not sure yet how we will or will not act to help him but one thing is certain: the Binance team is indeed involved in the case.

Excerpt from CZ’s comments in the interview with Bloomberg

Source: Binance Twitter account

This assertion contradicts old statements from Binance, which announced that it would not grant aid to Genesis for conflict of interest stories. However, it could benefit from the recovery fund initiated by the exchange platform.

Sam Bankman-Fried’s empire in CZ’s sights?

During his interview, Changpeng Zhao also claimed that he is keeping tabs on Voyager Digital’s assets. The fallen company is still waiting for a player to buy back its cryptocurrencies, especially since the original buyer, FTX, went into bankruptcy. It could be that Binance takes over the place of savior left vacant by Sam Bankman-Fried and flies to the aid of creditors who are patiently hoping to obtain their reimbursement. More so, the assets held by FTX could also be redeemed in the process.

Binance.US will make another offer for Voyager, as FTX is no longer able to follow through on this commitment. […] Concerning the assets held by FTX, they are also of interest to us but we will only be able to act when the company is in a period of liquidation. The latter is involved in a multitude of projects and we will not take them all over, but I definitely think that a good part of the assets concerned can be saved and will be a good investment for us. We will therefore make some proposals when they are available.

Excerpt from CZ’s comments in the interview with Bloomberg

The entrepreneur also confided in his idea of ​​​​a recovery fund, estimating that nearly a billion dollars would be allocated to platforms in difficulty. This tidy sum can also be extended if necessary and should allow the industry to rebuild itself in the next six months. Binance will communicate about this during the week.


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