- Cryptocurrency trading exchange, Genesis has decided to halt all its trading activities.
- Initially reported to be closing its U.S. trading desk, Genesis has now extended the shutdown to include its international spot and derivatives trading operations.
- Genesis will no longer offer digital asset spot and derivatives trading services through its business entity, GGCI International, Ltd.
Genesis, the cryptocurrency trading company that was severely affected by the collapse of Three Arrows Capital and FTX last year, has halted all of its trading activities. A spokesperson confirmed that while it was previously reported that the company was closing its U.S. trading desk, it has now also decided to shutter its international spot and derivatives trading operations.
Last week, an email sent to clients on Tuesday revealed that Genesis Global Trading (GGT) would be shutting down its over-the-counter trading platform on September 18. All trades must be settled by September 21, and any remaining open accounts will be closed by the end of the day on the 30th. The email explained that this decision was made voluntarily and for business-related reasons. Moreover, the statement read,
“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI). This decision was made voluntarily and for business reasons. With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities.”
Genesis spokesperson
Genesis, affiliated with Barry Silbert’s Digital Currency Group (DCG), was previously a prominent player in the cryptocurrency derivatives market. However, this recent announcement represents a significant change in the company’s direction.
The origins of this decision can be traced back to earlier this year when another subsidiary within the Digital Currency Group family, Genesis Global Holdco, filed for bankruptcy in January. This development sent ripples of surprise through the cryptocurrency industry, given that Genesis Global Holdco was a well-established platform for cryptocurrency lending.
After the collapse of its affiliate, Genesis conducted a thorough examination of its business and ultimately made some tough choices. A representative for Genesis emphasized that these decisions were made voluntarily and based on sound business reasons, aligning with a broader strategy to realign the company’s efforts and resources.
The company is swiftly implementing these changes. GGCI (GGC International Ltd) will immediately cease its derivatives trading services. Concurrently, spot trading services will be discontinued on September 21, 2023, as outlined in a memo seen by Bloomberg News.
This sudden exit from the market is particularly noteworthy given Genesis’ historical prominence. Since its inception in 2013, the company has played a substantial role in the cryptocurrency industry. It managed an impressive $116.5 billion in spot trading, earning recognition as one of the leading institutional derivatives desks by trading volume, as stated on its website. In the third quarter of the previous year, the firm reported trading approximately $18.7 billion worth of derivatives.
Genesis’s withdrawal from cryptocurrency trading services carries significant implications for the industry. It underscores the ongoing volatility and uncertainty that surround the cryptocurrency market. While Genesis’s decision was influenced by internal factors, it mirrors the broader challenges faced by companies operating in this space, ranging from regulatory scrutiny to market fluctuations.
