Last updated Jan 21, 2023
Decentraland revealed that it has a credit against bankrupt crypto lender Genesis Trading.
Genesis Global Trading was a popular Crypto lender company but due to its significant exposure to the FTX exchange, which filed for bankruptcy on 11 Nov 2022, it faced huge financial losses. On 19 Jan 2020, Genesis filed for bankruptcy under the chapter 11 code in a bankruptcy court in New York. A recent report claimed that Genesis planned to announce a new plan for its creditors to exit the bankruptcy proceedings.
On 21 Jan 2023, the Decentraland Crypto project revealed that it has a credit against Genesis of principal amount approx USD ~7.8M but its treasury will not face any big impact because of these funds’ loss.
Full disclosure: The Decentraland Foundation has a credit against Genesis of principal amount approx USD ~7.8M as of today. The Treasury remains healthy and the credit amount does not represent a substantial part of the Foundation’s treasury.
— Decentraland (@decentraland) January 20, 2023
Further the team confirmed that they will provide their services as usual without any issues or interruptions.
“The Decentraland Foundation continues to conduct business as usual and to support the Decentraland community under the role assigned to it in the Foundation Charter,” the announcement read.
Furthermore, Decentraland confirmed that there are no other kinds of financial relationship with Genesis, and also its treasury will not face any kind of financial challenge.
All references to Decentraland Foundation or its officers made in the context of reporting on the Genesis situation that are inconsistent with the contents of this release are incorrect. We are confident that the Genesis bankruptcy won’t have any financial impact on the DCL ecosystem.
— Decentraland (@decentraland) January 20, 2023 mana price action
Mana is a native token of the Decentraland crypto project. This project team provides virtual lands for people to set up their digital services in its virtual world.
Despite this negative news, the coin faced no negative impact on its trading price.
At the time of writing this article, the price of the mana token is $0.74 and this price is 17% higher than the last 24 hours’ trade price.
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