Summary of Genesis Restructuring Agreement
- Genesis has reached a restructuring agreement with key creditors that involves the sale of Genesis Global Trading.
- This deal includes two tranches, one denominated in U.S. dollars and another denominated in Bitcoin.
- Gemini will contribute up to $100 million more for the recovery for Earn users who still do not have access to their funds.
Genesis Reaches Restructuring Agreement With Creditors
Genesis, a subsidiary of Digital Currency Group (DCG), has reached a restructuring agreement with key creditors according to statements by Cleary Gottlieb attorney Sean O’Neal, representing Genesis. The agreement would see the sale of Genesis Global Trading, amongst other moves designed to “maximize the recoveries to the estate.” It also involves restructurings of the debt DCG owes to Genesis Holdco, which was one of the legal entities that previously filed for Chapter 11 protection.
Terms Involved in Agreement
The terms involved in this agreement include a second lien term loan facility with a maturation date of June 2024 and two tranches – one dominated in U.S. dollars that will pay 11.5% interest and another denominated in bitcoin that will pay 5% interest. Additionally, DCG has agreed to issue a type of convertible preferred stock though specifics are still being determined.
Cause Of Action
The lending arm of Genesis was forced to halt withdrawals in November 2022 after suffering contagion from the collapse of crypto exchange FTX earlier that same month. As such, they filed for bankruptcy last month with their lawyers stating then that they anticipate reaching an agreement with creditors by the end of January 2023. This collapse also led to frozen withdrawals for Gemini Earn users who received yield through arrangements with Genesis’ lending arm.
Gemini’s Contributions To Recovery Efforts
- Twitter is reportedly in the process of getting regulatory licenses to facilitate payments through its platform.
- Elon Musk has expressed interest in adding cryptocurrency, like Bitcoin, as a payment option for Twitter’s “super app” concept.
- The company previously tested “tipping” with Bitcoin Lightning Network and allowed users to add their Bitcoin address for direct tips.
Twitter Prepping For Payments
According to a Financial Times report, Twitter is applying for regulatory licenses across the U.S. in preparation to begin facilitating payments through the app. People close to the company stated that Twitter “has started to map out the architecture needed to facilitate payments on the platform with a small team” which could potentially include functionality for cryptocurrency payments.
Elon Musk Open To Adding BTC & Crypto
Elon Musk has expressed his interest in adding cryptocurrency and bitcoin as part of Twitter’s payment vision, however he wants fiat payments prioritized first. This isn’t surprising considering his previous acceptance of bitcoin for Tesla electric vehicles only later retracted due to environmental concerns.
“Super App” Vision
Musk has firmly reiterated since taking over of Twitter that he wants it become more of a generalized “super app” with multifunctionality approach which would benefit greatly from the increased functionality of cheap and instantaneous payments using platforms like bitcoin lightning network.
“Tipping” Tested With Bitcoin Lightning Network
In order to test this idea, Twitter previously implemented “tipping” via Jack Mallers’ Strike with ability added later on allowing users to add their own Bitcoin address directly receive their tips.
Twitter’s potential integration of crypto into its payment system is exciting news both for cryptocurrencies and social media giants alike – although nothing is confirmed yet, this could signal future progress towards increased adoption and usage of digital assets within mainstream applications such as social media platforms.
• Bitcoin has seen increased investment from a notable number of black Americans in the late 2010s.
• The crypto market crash in 2021 saw many cryptocurrency investors suffer financially, including Black Americans.
• Despite this setback, there is still strong interest from the Black community to discover financial autonomy through Bitcoin.
Bitcoin’s Growing Appeal Amongst Black Investors
Bitcoin has become increasingly popular among African American investors due to its blockchain technology, which provides an immutable record of transactions, and its record-high prices. Many black Americans invested their Covid-19 stimulus checks into bitcoin during this period, which led to a significant increase in cryptocurrency ownership within the African American community.
The Crypto Bubble Crash
Unfortunately, following this period of growth for bitcoin investments amongst black Americans, the overall crypto market began to shrink as digital currencies entered into a winter market. This led to billions of dollars being lost by cryptocurrency holders across all demographics but was especially costly for Black Americans who had grown their holdings over time.
Financial Inclusion Through Bitcoin
Despite the losses incurred by many African American cryptocurrency holders due to the crypto crash, there is still strong interest from the Black community in discovering financial autonomy through bitcoin investments. This is because small-dollar investors from historically marginalized communities can purchase BTC on digital platforms without a credit check – something that may be difficult or impossible with other asset classes.
Lessons Learned From Black Investors
Black investors can teach us important lessons about investing in any field regardless if you’re investing in bitcoin or not – such as having an understanding of risks and rewards associated with any asset class and doing your research before making investments decisions.
As more people become aware of cryptocurrencies like Bitcoin and Ethereum, it’s essential that we don’t forget those who were among its earliest adopters – namely members of the Black community who believed early on in its potential and invested accordingly despite facing greater financial risks than others due to systemic racism and inequality still prevalent today.