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Are DCG and Genesis going bankrupt and causing another crypto crash like Terra Luna?

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  • Sources familiar with the matter said that Genesis has hired an investment bank to explore different options, including bankruptcy.
  • DCG chief Barry Silbert wrote to investors explaining the current situation and assured that they would come out stronger from the current crisis.

The contagion of the FTX collapse has spread to some of the biggest players in the crypto space such as the Digital Currency Group (DCG). On Tuesday, November 22, sources familiar with the matter told the New York Times that Genesis Global Capital has hired investment bank Moelis & Company to explore different options including bankruptcy.

The report adds that there aren’t any financial decisions made yet and that Genesis can still look to avoid bankruptcy. As per the previous reports, Genesis Global is looking to raise $1 billion in funds with a deadline of Wednesday. Another option proposed by industry experts is Reg M for Grayscale’s Trust.

In the FTX accounts, the derivatives unit of Genesis Global has more than $175 million locked. Thus, all eyes are now on the parent company Digital Currency Group (DCG), and whether it can help Genesis with its liquidity requirement. Some sources familiar with the matter also stated that Genesis has lowered the ask of fundraising to $500 million. In a note to investors on Tuesday, DCG founder and CEO Barry Silbert spoke about the current situation. He noted:

In recent days, there has been chatter about intercompany loans between Genesis Global Capital and DCG.  For those unaware, in the ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms.  These loans were always structured on an arm’s length basis and priced at prevailing market interest rates.

DCG will come out stronger from this Crypto winter

Barry Silbert further disclosed adding that DCG has a liability of $575 million to Genesis Global due May 2023. He added that DCG used this loan amount to fund different investment opportunities and repurchase the DCG stock from non-employee shareholders in the secondary market.

Furthermore, Silbert reminded investors that there’s a $1.1 billion promissory note due June 2023, that DCG owes Genesis related to the liabilities from the default of Three Arrows Capital. However, Silbert remains confident that DCG can come out stronger from the current mess. He noted:

DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system. We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger.

Amid the current liquidity crunch and the mismatch in the loan book, Genesis Global leadership and their board decided to hire legal and financial advisors. The firm is exploring different possible options as of now. “Our goal is to resolve the current situation without the need for filing a bankruptcy,” a Genesis spokesman told the New York Times.

Der Beitrag Are DCG and Genesis going bankrupt and causing another crypto crash like Terra Luna? erschien zuerst auf Crypto News Flash.

Sky is a seasoned cryptocurrency expert with a passion for blockchain technology and digital finance. With years of experience in the crypto industry, he has authored insightful articles on market trends, emerging technologies, and investment strategies. His work has been featured in leading crypto publications, helping both beginners and seasoned investors navigate the complex world of digital assets. Sky is dedicated to providing readers with accurate, up-to-date information to make informed decisions in the rapidly evolving crypto space.

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Vitalik Says Fileverse Is Now Stable for Encrypted Collaboration

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Fileverse has officially reached a new level of stability, offering smooth encrypted collaboration after months of improvements — and Ethereum co-founder Vitalik Buterin says he’s now using it confidently for real work. According to Buterin, the platform finally delivers consistent performance across shared documents, comments, and real-time updates, marking a major milestone for decentralized productivity tools.

Buterin shared the update after extended testing, noting that recent bug fixes steadily removed the friction that once limited Fileverse’s usability. His comments also addressed ongoing questions from the crypto and developer community about how far the platform has come and whether it’s ready for broader adoption.

Fileverse Shows Steady, Monthly Improvements

Reflecting on his experience, Buterin said the platform improved month after month as developers resolved key issues. Today, Fileverse is reliable enough that he can share documents, collect comments, and collaborate live without disruptions — a major shift from earlier iterations.

His response came after an X user asked why the project operates so efficiently. Buterin emphasized that more teams in the space work effectively than people think, and that Fileverse benefits from not relying on heavy network effects. This helped redirect the conversation toward how users actually engage with the tool.

No Web3 Background Required — And No Wallet Needed

One of Fileverse’s biggest advantages, according to Buterin, is its ability to onboard users seamlessly. He explained that he can send a Fileverse document to anyone — even someone unfamiliar with Fileverse, Ethereum, or Web3 — and they can comment immediately.

The platform handles encryption and decentralized infrastructure behind the scenes, avoiding the need for wallets, tokens, or blockchain interactions. This design gives users a simple, familiar experience while preserving strong security, dramatically lowering the barrier to entry for privacy-focused collaboration.

Developers Praise Broader Decentralized Coordination

Developers who follow decentralized collaboration tools highlighted that Fileverse isn’t just about encrypted documents. They noted that the platform enables distributed coordination without relying on centralized servers, supporting both human and automated workflows that operate without fixed control points.

Buterin added that Fileverse’s progress demonstrates what’s possible when teams build tools for real use cases instead of speculation. The broader challenge, he said, is creating more decentralized services that solve everyday problems and support meaningful work.

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Solomon Labs (SOLO): A New Approach to Yield-Generating Stablecoins on Solana

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Solomon Labs is introducing a new direction for stablecoins by designing a system where digital dollars can earn yield while maintaining a stable value. Built on the Solana blockchain, the project aims to create a more productive form of digital cash by integrating automated yield strategies into a stable and composable token ecosystem.

A Stablecoin Designed to Earn

Unlike traditional stablecoins that simply hold their peg, Solomon Labs is developing a model that allows its primary stable asset to generate returns without rebasing or changing its supply. The idea is straightforward: give users a stable, dollar-pegged token that behaves like cash while quietly accumulating yield in the background.

This approach is designed for users who want dependable value but don’t want their capital sitting idle. Solomon Labs blends stability with passive growth, positioning its stablecoin system as a modern alternative to low-yield financial products.

The Multi-Token Model Behind the Project

At the center of Solomon’s ecosystem is a non-rebase stablecoin meant to stay firmly pegged to one dollar. Alongside it is a staked version of the stablecoin that accumulates yield over time. This structure allows users to choose whether they prefer maximum liquidity or enhanced returns.

By combining neutral asset exposure with automated yield strategies, Solomon Labs aims to provide a balanced environment suitable for both conservative users and more yield-focused participants.

The SOLO Token and Ecosystem Growth

To support its infrastructure, Solomon Labs introduced the SOLO token, which plays a role in governance, ecosystem incentives, and liquidity development. The project has gained early attention within the Solana community due to its clear focus on stability, sustainability, and real utility.

As more decentralized applications seek stable, productive assets, Solomon Labs positions itself as a potential building block for lending markets, payments, and on-chain treasury systems.

Why Solomon Labs Stands Out

Solomon Labs is tackling a familiar problem: stablecoins are widely used but financially inactive. By allowing stable assets to earn yield while remaining composable across DeFi, the project brings a new layer of utility to one of the most adopted categories of digital assets.

With a focus on safety, predictable value, and passive growth, Solomon Labs is aiming to redefine what stablecoins can offer to both users and developers.

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Paystream (PAYS): A New Peer-to-Peer Lending Engine Built for the Solana Era

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Paystream (PAYS) is emerging as one of the newest DeFi protocols aiming to reshape how lending and liquidity work on the Solana blockchain. Instead of relying solely on large pooled liquidity models, Paystream introduces a direct peer-to-peer lending system designed to deliver better rates, higher capital efficiency, and a more dynamic experience for both lenders and borrowers.

A Smarter Way to Lend in DeFi

Traditional lending protocols match borrowers and lenders using interest-rate curves, which often leave capital idle and yields inconsistent. Paystream attempts to fix that by directly pairing lenders with borrowers at optimized market rates. This peer-to-peer engine focuses on reducing the gap between what lenders earn and what borrowers pay, creating a more efficient lending environment.

The project’s goal is to make DeFi lending feel more streamlined, more consistent, and more aligned with real demand rather than algorithmic guesswork.

Leveraged Liquidity Provisioning Adds More Earning Potential

One of Paystream’s standout features is its ability to automatically route unused funds into leveraged liquidity positions across major Solana AMMs. This prevents capital from sitting idle and allows depositors to continue generating yield even when no direct lending match is available.

This dynamic approach blends lending opportunities with liquidity-providing strategies, aiming to deliver smoother and more predictable returns for users.

Designed for Solana’s Speed and Scale

Solana’s architecture makes it possible for Paystream to operate with fast, low-cost transactions — a critical factor for real-time matching between lenders and borrowers. The network’s high throughput helps Paystream’s routing engine quickly deploy and shift capital without slowing down the user experience.

The Market View

Paystream is still early in its lifecycle, but it has started gaining attention through tracking platforms and its community. With the PAYS token circulating on Solana and powering the protocol’s ecosystem, interest continues to grow around how Paystream’s model could expand as borrowing and liquidity activity increases.

As the broader DeFi market evolves, Paystream’s hybrid approach — combining peer-to-peer matching with leveraged liquidity strategies — positions it as a protocol to watch.

Why Paystream Stands Out

  • Direct matching between lenders and borrowers
  • Continuous yield generation through fallback liquidity routing
  • Built on Solana for speed and efficiency
  • A design focused on maximizing capital productivity
  • Aiming to bridge gaps left by traditional AMM-based lending systems

Paystream represents the next iteration of DeFi lending, where idle capital is minimized, opportunities are maximized, and blockchain performance is fully leveraged.

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