As cryptocurrency lender Genesis Global Trading filed for Chapter 11 bankruptcy protection in New York, members of the crypto community took to social media to voice their opinions on the matter.
From the belief that no one will be held responsible for labeling the whole concept of cryptocurrency lending “stupid,” community members have given their thoughts on the latest addition to the seemingly never-ending wave of bankruptcies in the crypto space.
Some believe that the winners in all of these events will be the bankruptcy lawyers. According to a community member who claimed to be a creditor to Voyager, clients’ money would be used to pay lawyers millions, and eventually, “no one will be held accountable.”
Genesis just asked for chapter 11.
Bankruptcy lawyers make money from cryptocurrency bankruptcies.
– currency bureau January 20, 2023
Cameron Winklevoss, Gemini Co-Founder highlighted That bankruptcy is “good news” and a step towards Gemini users getting their money back. However, a community member criticized Winklevoss’s tweet and reiterated that the only victims are the users. According to the user, Gemini is “very guilty” of Failure to exercise due diligence On how to do Genesis’ business before partnering with them.
Meanwhile, a crypto analyst has created an illustration of how crypto companies have fared during the recent bankruptcies the industry has faced. According to the analyst, the Genesis bankruptcy will reveal the cycle of leverage in the crypto market.
The Genesis bankruptcy would expose the entire leverage cycle of the crypto market.
– alpha (alphaketchum) January 20, 2023
Seemingly fed up with the negativity surrounding the space, some members of the community have expressed their distrust of cryptocurrency companies. Twitter user He said People could no longer rely on US based companies because they were all connected. Dogecoin (DOGE) creator Billy Marcus too comment In this regard, he called the whole concept of cryptocurrency lending “stupid” and called everyone involved “idiots.”