Another cryptocurrency company is experiencing market repercussions in the aftermath of the recent FTX incident. According to sources, the market leader in Hong Kong for retail bitcoin services, Genesis Block, has stated it would close its doors and stop trading.
According to a report by Reuters, Hong Kong-based cryptocurrency services company Genesis Block said on Friday that it will stop providing over-the-counter (OTC) trading services due to the potential for spillover effects from the now-defunct FTX platform. Additionally, Genesis Block requested that consumers remove their money, and it would no longer take on new clients. Genesis Block was once Asia’s biggest bitcoin (BTC) ATM operator.
Genesis Global Capital, which is owned by Digital Currency Group, has no connection to Genesis Block Trading (DCG).
“We have ceased trading, as we don’t know which counterparties would fail next, so we would rather close out all our positions to regain some of our liquidity,” Genesis Block chief executive Wincent Hung told Reuters this week.
According to insiders with the firm, Genesis Block severed its links with FTX before the controversy and started winding down its services early this year. Additionally, the business had 29 locations in Hong Kong and one of the most extensive networks of Bitcoin ATMs in the area, which it later sold to a different party.
Total Crypto Market Cap Drops to 2022 Low After FTX Collapse
According to statistics from TradingView, the overall market value of digital assets has dropped this month below $800 billion, a level not seen since early 2021, as investor trust in cryptocurrencies has decreased as a result of Sam Bankman-FTX Fried’s exchange collapsing.
The market value of the sector was reduced by $183 billion as a result of the most recent wave of market volatility in the digital asset markets. On November 9, the amount fell to $736 billion, the lowest level since January 2021. The fall coincided with a new downward spiral in bitcoin and other cryptocurrency values caused by the FTX issue. The largest cryptocurrency, Bitcoin (BTC), saw its worst weekly performance in five months over the seven days ending on November 13.
Currently, Bitcoin accounts for $319 billion of the market value for cryptocurrencies. About a year ago, bitcoin’s market worth was over $1 trillion at the height of the bull market, when it hit its all-time high of roughly $69,000.