The “FTX disaster” is having a knock-on effect on other crypto funds and exchanges, making the cryptocurrency market extremely gloomy.
The cryptocurrency market is going through extremely worrying difficulties when a series of bad news appear, sinking the price of Bitcoin - the digital currency that represents this market to below its lowest level in 2 years.

FTX, the cryptocurrency exchange that once held the No. 1 position in terms of trading volume in the US, the 2nd in the world after Binance suddenly declared bankruptcy with $ 3.1 billion in debt.

But that is only the debt of the 50 largest creditors. According to statistics, about 1 million other customers and investors suffered in this bankruptcy, with a total loss of many billions of dollars.

FTX and its subsidiaries filed for bankruptcy in a Delaware court on November 11, marking one of the largest-ever collapses in the cryptocurrency sector.

After FTX, on the morning of November 22, a series of rumors continued to appear about the cryptocurrency lending company “Genesis Trading” facing the risk of bankruptcy if it could not raise a support amount of up to 1 billion USD.

Genesis was one of the entities that admitted to being involved in the collapse of the FTX cryptocurrency exchange, with $175 million stuck on the exchange. The company then announced to stop supporting withdrawals and provide new loans.

Genesis' parent company, Digital Currency Group (DGC), was rumored to be organizing a fundraising round of up to $1 billion last week to support. Although DGC was later reduced to only 500 million USD, this was still a big shock to investors.

Genesis Trading is in danger of bankruptcy after being "stuck" on FTX.
The Genesis event facing bankruptcy is the result of a series of crypto market crashes in 2022, from LUNA – UST, Three Arrows Capital, Celsius and the latest FTX, all of which are possible. negative impact on Genesis Trading because this unit is said to be a liquidity provider or has a relationship with most of the crypto projects on the market.

Genesis previously claimed to have loaned Three Arrows Capital $2.36 billion and became the largest creditor when the fund went bankrupt.

Safety plans are set up quickly

Binance CEO Changpeng Zhao once mentioned building support funds for crypto exchanges as well as institutions investing in this field. He himself also attended a meeting with investors in Abu Dhabi to discuss legislation as well as issues related to market regulation.

At the same time, faster than Binance, Bybit - the world's third most visited cryptocurrency exchange has just announced the launch of a $100 million fund to support market makers. during this challenging period of the crypto industry.

Accordingly, the fund will support Bybit's dedicated corporate customers with a maximum amount of up to 10 million USD each in the aftermath of recent events that are still complicated.

Customer support fund will be the top priority of electronic exchanges
Bybit said it will use the funds to support any corporate customers that require it. Offer is open to existing customers as well as corporate customers new to cryptocurrency trading.

In addition to the support fund, Bybit also provides dedicated account managers to assist after customers have become verified KYB (Know Your Business) users.

Ben Zhou, co-founder and CEO of Bybit, said: “We all have to face and overcome the complexities of the market together. That's why we announce the support fund as a way to support the whole industry in general and ourselves in particular."

Besides cryptocurrency exchanges, major investment funds in the world insist that this field will not disappear, instead strict and strict requirements will be applied to ensure a transparent environment. for investors.

Bill Ackman, World Billionaire and CEO of Pershing Square Capital Fund said: “I used to be quite conservative when it comes to cryptocurrencies but after doing more research on interesting projects, I believe crypto has its potential. could enable the expansion of entirely new and useful businesses and technologies.”

As of noon on November 24, the cryptocurrency market had a slight recovery after funds reassured investors that Genesis would not suffer bankruptcy, as well as moves from top exchanges, shows the responsibility to protect investors when participating in this market.


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