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Genesis Global, a once-significant player in the crypto trading industry, has announced its decision to exit the cryptocurrency trading business entirely.
Genesis Global: Fall from Grace
This decision comes on the heels of the company’s earlier move to wind down its spot trading services, and now it’s discontinuing all trading activities through GGC International Ltd, signaling the end of an era for one of the cryptocurrency industry’s prominent players.
Genesis, an affiliate of Barry Silbert’s Digital Currency Group (DCG), was once a major player in the crypto derivatives market. However, this latest announcement marks a profound shift in the company’s trajectory.
The genesis of this decision can be traced back to earlier this year when another entity under the Digital Currency Group umbrella, Genesis Global Holdco, filed for bankruptcy in January. This move sent shockwaves through the crypto industry, as Genesis Global Holdco was a well-established crypto-lending platform.
Following the collapse of its affiliate, Genesis examined its business and decided to make some difficult decisions. “This decision was made voluntarily and for business reasons,” said a representative for Genesis. The change is part of a larger strategy to refocus the company’s efforts and resources.
Genesis Market Exit: Established Timelines
The company is moving quickly to implement these changes. GGCI (GGC International Ltd) will cease offering derivatives trading immediately. Simultaneously, spot trading services will come to an end on September 21, 2023, as outlined in a memo viewed by Bloomberg News.
This sudden exit from the market is remarkable, considering Genesis’ historical prominence. Since its establishment in 2013, the company has played a significant role in the crypto industry.
Over the years, it handled a staggering $116.5 billion in spot trading, earning its place as one of the top institutional derivatives desks by trading volume, as noted on its website. In the third quarter of the previous year, the firm reported trading approximately $18.7 billion worth of derivatives.
Genesis’s exit from crypto trading services carries several implications for the industry. It underscores the volatility and uncertainty that continue to shroud the crypto market. While Genesis’s decision was influenced by internal factors, it reflects the broader challenges faced by companies operating in this space, from regulatory scrutiny to market fluctuations.
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