Deribit crypto trading derivatives exchange has issued statements regarding affiliations with some troubled crypto companies such as Genesis Global Capital, Gemini Earn, etc.
Reasons Deribit disengaged from Gemini and Genesis
According to a Twitter post on November 16, 2022, from Deribit’s official Twitter account, Deribit and its affiliates claim they do not hold any assets with either Genesis or Gemini.
The company has dissociated itself from Genesis Global Capital, saying it does not hold any large or risky positions with the firm.
“Please also note that Deribit does not participate in Gemini Earn or have assets on any other exchange or platform besides our custodians.”Deribit said.
The report comes after Genesis declared earlier via its lending division that customer redemptions and new loan organizations have been suspended.
“We have made the challenging decision to temporarily halt loan redemptions and new loan applications. We are putting forth a lot of effort to secure the necessary liquidity to fulfill our obligations to our lending clients.”Gemini said.
The company disclosed that the unprecedented FTX fall was the major cause of their fallout, which is could also be why Deribit decided to distance itself from the firm.
“However, FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.”Genesis noted.
Furthermore, Genesis Global Capital, Genesis’ trading lending business, said that it made the difficult decision to suspend redemptions and new loan organizations temporarily.
After that, Gemini Earn announced that it is planning to stop processing Earn redemptions going forward. However, the company did not give any time for when they would get enabled again. Even as these companies try to dig out of insolvency amid the FTX woes, Genesis’ idea to halt credit operations is causing critical repercussions for the rest of the cryptocurrency industry.
On the other hand, Gemini is collaborating with the Genesis team to assist customers in quickly redeeming their funds from the Earn program.
Will Deribit or other crypto companies work with Gemini and Genesis again?
However, in the wake of the troubles facing both companies, Deribit still doesn’t want affiliations with the firms.
On the other hand, other companies still have faith in Gemini and Genesis despite their turmoil. Tether revealed in a post on Wednesday, November 16, 2022, that it had no exposure to either Genesis or Gemini Earn and would continue operating as usual.