Tyler Winklevoss, founded of Gemini, announced yesterday that the creditor committee advising Genesis and DCG on their liquidity issues has come up with a plan.
To recap, DCG owes its subsidiary company Genesis $1.675B: $1.1B in the form of a promissory note that isn't due until June 2032 and $575M in the form of an intercompany loan that is due in May 2023. In lieu of the FTX/Alameda collapse, Genesis creditors rushed to make redemptions, but Genesis was not liquid enough to fulfill the requests of their creditors. This is ultimately how Gemini, the CEX founded by the Winklevoss twins, was forced to halt withdrawals for its 'Gemini Earn' program. Genesis was the engine behind the Earn program. They would pay Gemini an interest rate to borrow customer deposits, Gemini would take a small slice, and then customers would get whatever was left over. This was very appealing in a low interest rate environment, but clearly went awry in the midst of all the contagion experienced throughout this year. Last night the co-founder of Gemini, Tyler Winklevoss, tweeted that a member of the creditor committee advising DCG, Genesis, and Gemini presented a plan to resolve the liquidity crisis plaguing all 3 parties. While this is promising for the retrieval of customer funds, the blog post notes that the process is still in the early stages and discussions are ongoing. You can track updates related to the situation here.
With the continued uncertainty in financial markets on a macro scale, our industry could certainly use a pick-me-up in the form of clarity surrounding DCG, Genesis, and Gemini. Maybe we get lucky and DCG 'finds an extra $1B' laying around across hundreds of bank accounts, like FTX.
- Sam Martin |
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Flashbots developed MEV-Boost to help democratize MEV opportunities in PoS Ethereum. A large concern after the Merge was whether or not there would be a competitive market of builders to avoid censorship or points of centralization that could be abused. Flashbot's builder accounted for 60-80% of blocks routed through MEV-Boost during the first week following the Merge, but now only accounts for 20-25%. Ethereum is becoming more robust over time as new and competitive builders enter the market. |
A post popped up on the BitDAO forum to use $100M from their treasury to purchase $2M worth of USDT of BIT for 50 days beginning Jan. 1, 2023. The author makes the case that it would leave the DAO with ample runway; $600M of ETH, USDC, and USDT. They also argue that it should be viewed similarly as a stock repurchasing program given the low market price of the BIT token. Community support is mixed, but the potential for $2M of daily buy side pressure on a low liquidity coin was enough to earn it a spot in the daily newsletter. |
Arweave allows permanent data storage across a decentralized network of hardware for a one-time fee, and ensures its integrity and accessibility. |
Aura is a Convex fork that serves the Balancer DEX. By aggregating governance power, Aura drives efficiency to BAL LPs. |
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There is no telling (yet) how much cash Bankman-Fried shelled out under the table |
Core Scientific plans to continue mining bitcoin throughout its bankruptcy, triggered by slumping revenue and unpayable debts |
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The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm's Financial Disclosures. |
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