Bulletpoints:
• Digital Currency Group’s (DCG) Genesis Global Trading, partner on a crypto lending product, has been in dispute with the Winklevoss twins’ crypto exchange Gemini
• DCG is reportedly looking to sell some of its venture-capital portfolio, worth around $500 million, to pay off Genesis’ creditors who are owed over $3 billion
• Lumida CEO and co-founder Ram Ahluwalia weighs in on the escalating tensions between DCG and Gemini
Tension is mounting between Digital Currency Group’s (DCG) Genesis Global Trading and the Winklevoss twins’ crypto exchange Gemini over a crypto lending product pitched to smaller investors. According to a report by the Financial Times, citing sources, the parent company of Genesis and CoinDesk is looking to offload some of its venture-capital portfolio, worth around $500 million, to pay off Genesis’ creditors who are owed over $3 billion.
The Winklevoss twins’ crypto exchange Gemini has since escalated its dispute with DCG’s Genesis Global Trading by terminating a key aspect of their relationship. Lumida CEO and co-founder Ram Ahluwalia weighed in on the tensions between the two companies, stating that the dispute shows that the crypto industry is maturing and companies involved must take responsibility for their actions.
The crypto lending product pitched to smaller investors is a key part of the two companies’ relationship, and the termination of the agreement has caused a rift between them. This has led to a situation where DCG is now looking to sell some of its venture-capital portfolio in order to pay off its creditors. This move has been seen by some as a way to reduce exposure to the volatile crypto market and secure additional funds to pay off its creditors.
The Financial Times report also highlighted the potential impact of the dispute between the two companies on the wider crypto industry. It noted that the feud between the two companies could have a knock-on effect on other companies in the industry, with smaller investors potentially being left out of pocket as a result.
Despite the growing tensions between the two parties, Ahluwalia maintains that the dispute is a sign of maturing in the crypto industry and that companies must take responsibility for their actions. He stated that the industry must ensure that its practices are up to the standards of the traditional financial world and that companies must be held accountable for their actions.
It is unclear how the dispute between the two companies will ultimately be resolved, but it is clear that the feud has highlighted some of the issues that still need to be addressed in the crypto industry. The dispute between DCG and Gemini is a reminder that the industry is still in its infancy and companies must be held to a higher standard if they are to remain viable in the long-term.