Hours after news broke out that DCG’s crypto trading subsidiary Genesis is planning to file for bankruptcy, another media house CoinDesk has now come into trouble.
DCG’s own media publication has potentially hired advisors at the Lazard Group for a potential sale. This move would mean CoinDesk’s exit from Barry Silbert’s Digital Currency Group.
The Wall Street Journal was the first to report the news of CoinDesk hiring the bankers at Lazard. Furthermore, in an email statement, CEO Kevin Worth said:
“Over the last few months, we have received numerous inbound indications of interest in CoinDesk”. He further added that Lizard will help CoinDesk “explore various options to attract growth capital to the CoinDesk business, which may include a partial or full sale.”
FTX Contagion Spreads to CoinDesk
Launched back in 2013, crypto media publication CoinDesk was among the first to report the balance sheet troubles at Sam Bankman-Fried’s Alameda Research. That report spiraled further into exposing a deeper hole at FTX and eventually led to the bankruptcy of both firms.
However, the contagion of the FTX collapse has come to hit CoinDesk and its parent firm Digital Currency Group (DCG). DCG’s subsidiary and crypto lender Genesis filed for bankruptcy last month putting crypto exchange Gemini into greater trouble.
Many market analysts have been warning that the collapse of the crypto exchange FTX is likely to spread further in the market and impact several crypto firms this year. However, any major trouble at Digital Currency Group (DCG) could put the crypto market in greater trouble considering that it controls the world’s largest digital asset management firm Grayscale.
While DCG has been claiming no trouble at Grayscale, investors should watch the developments. This year of 2023 has started with a much-needed relief for crypto investors as Bitcoin and the broader crypto space have registered a strong bounce back.
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