Here is the CLST weekly insight for the third week of 2023, particularly focused on the institutional digital asset market. Discover our weekly insight collection below.

Article: Genesis is the latest piece of the FTX domino to fall

https://qz.com/genesis-bankruptcy-2023-gemini-earn-ftx-collapse-1850010613

Last Friday, on the 20^th of January, Genesis Global Trading, one of cryptos most prominent lending companies, has officially filed for bankruptcy. Having been a major client of FTX, Genesis’ bankruptcy shows that the aftermath of the FTX collapse is far from over. The News came out a week after the Securities and exchange commission (SEC) charged both Genesis and the Gemini  cryptocurrency exchange for illegally selling securities to investors through their collaborative “Earn program”.  

Article: Gemini’s Cameron Winklevoss Threatens Legal Action Against DCG CEO After Genesis Bankruptcy Filing 

https://www.coindesk.com/business/2023/01/20/cameron-winklevoss-threatens-legal-action-against-dcg-ceo-after-genesis-bankruptcy/

Just minutes after Genesis trading filed for Chapter 11 in New York, Gemini CEO Cameron Winklevoss published a tweet where he threatened to sue Digital Currency Group (DCG) CEO Barry Silbert over the repayment of a 900 million loan. 

 “Unless Barry and DCG come to their senses and make a fair offer to creditors, we will be filing a lawsuit against Barry and DCG imminently.” – Cameron Winklevoss (Twitter, 2023) 

Article: Binance Will Allow Institutional Investors to Keep Collateral Off the Crypto Exchange 

https://www.coindesk.com/business/2023/01/16/binance-will-allow-institutional-investors-to-keep-collateral-off-the-exchange-bloomberg/

On January 17^th, Binance announced that the exchange will allow institutional investors to keep their collateral used for leveraged positions off the platform. The feature, having been called the Binance Mirror, could be a major step forwards for a more organized crypto market, as most investors have to keep their collateral at the same exchange they operate in, which could cause problems in volatile market conditions.  

Article: Davos 2023: Cowed crypto crowd feel winter freeze at WEF 

https://www.reuters.com/business/finance/davos-2023-cowed-crypto-crowd-feel-winter-freeze-wef-2023-01-19/

Last year the cryptocurrency market experienced a series of market failures, now being known as the “crypto winter”. Now with multiple individuals of high significance at the World Economic Forum (WEF), the conversation has turned to crypto currencies, and the general consensus is that although crypto has had a serious reality check last year, the market is at a turning point.  

“Crypto is trying to establish its presence. There is nothing more establishment than the World Economic Forum” – SkyBridge Capital founder Anthony Scaramucci.  

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