When the cryptocurrency lender Genesis Global Trading filed for Chapter 11 bankruptcy protection in New York, members of the cryptocurrency community took to social media to express their views on the matter.
From believing that no one will be held accountable to calling the whole concept of cryptocurrency lending “stupid”, community members gave their thoughts on the latest addition to the seemingly endless wave of bankruptcies within the crypto space.
Some believe that the winners in all these events will be the bankruptcy attorneys. According to a community member who claimed to be a Voyager creditor, client funds will be used to pay millions to lawyers and, in the end, “no one will be held accountable.”
Genesis just filed for chapter 11.
Bankruptcy lawyers making bank on crypto bankruptcies.
— Coin Bureau (@coinbureau) January 20, 2023
Gemini co-founder Cameron Winklevoss he pointed that bankruptcy is ‘good news’ and a step for Gemini users to get their money back. However, a community member criticized Winklevoss’s tweet and reiterated that the only victims are the users. According to the user, Gemini is “also guilty” for not having done Do your due diligence on Genesis’s way of doing business before partnering with them.
Meanwhile, a crypto analyst created an illustration of how crypto companies were potentially connected through the recent bankruptcies the industry faced. According to the analyst, the bankruptcy of Genesis will reveal the leverage cycle of the crypto industry.
Genesis bankruptcy is going to reveal the entire crypto leverage cycle.
enjoy. pic.twitter.com/X9zduPzlQY
— Alpha (@alphaketchum) January 20, 2023
Apparently fed up with the negativity surrounding the space, some members of the community expressed a lack of confidence in cryptocurrency companies. A Twitter user said that people could no longer trust US-based companies, as they were all connected. Dogecoin (DOGE) creator Billy Markus also commented the matter, calling the whole concept of crypto-lending “stupid” and calling everyone involved “idiots.”
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