The last seven days in the crypto industry have been bustling, generating many stories that might still be discussed within the crypto community. Another major crypto firm is down after the FTX collapse: Genesis, a lending firm, announced bankruptcy last week.
Genesis's bankruptcy brought a lot of controversies as many community members expressed their distrust of crypto firms.
The Genesis bankruptcy isn't the only crypto news to expect for the week. Fallen crypto firm FTX has started talks about restarting their crypto firm after filing for bankruptcy. Continue reading to see some crypto stories to keep an eye on for the week.
Battle of the Layer 2s
One of the developing crypto stories is the battle between the Layer 2 rivals, Optimism and Arbitrum. Many crypto enthusiasts in the community have proposed that Optimism has everything it would take to overtake Arbitrum as the king of Layer 2. While many agree with this claim, others think Optimism is still far from achieving such a feat. But looking at their numbers, Optimism is coming for every record Arbitrum has held in the past.
After the Optimism Quests (educational tasks and quizzes to earn NFTs), the Layer 2 firm has made huge strides in overtaking its rival Arbitrum. Optimism has already released its native OP token, which Arbitrum has not done, and it is already up by more than 150% in January. However, in terms of the total value of assets in each protocol, Optimism has $636.6 million compared to the $1.1 billion on Arbitrum.
Genesis First Bankruptcy Hearing
One of the major events and crypto news the crypto community will look forward to is the Genesis case on Monday. Genesis was the latest crypto firm that announce it would be filing for bankruptcy after failing to stabilize its company.
The crypto lending firm broke the last straw for many crypto users as many confirmed they had lost trust in many crypto companies for now. Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York will be the person who will be presiding over the case. According to the court's filings, Genesis Capital’s bankruptcy case will be held on Jan. 23 at 2:00 pm Eastern Time.
Genesis Global Capital filed for Chapter 11 bankruptcy protection in New York. Chapter 11 bankruptcy protection means that the collapsed crypto lending firm can continue its business operations while proposing a reorganization plan to investors/creditors. As speculated, the woes of Genesis Global Capital resulted from the FTX collapse effects in the crypto industry
Cardano was one of the A-list cryptocurrencies that had a very bad performance in 2022. The major cause of the decline of Cardano in 2022 was the collapse of FTX, which caused the coin to close the year at the price of around $0.24. It is also important to note that after the FTX collapse, Cardano declined by more than 33%.
However, it seems like things might be getting better for Cardano in 2023; there's some sort of resurrection going on with the cryptocurrency. According to data provided by Coinmarketcap.com, the cryptocurrency traded above $0.37 yesterday. This is a very good sign post-FTX.
However, the next question that springs up from this crypto news is, can Cardano sustain the new price surge? Since the start of the year, the price of Cardano has increased by about 44%. Cardano sustaining its price increase now majorly depends on the price of Bitcoin in the market.
Most cryptocurrencies have been on the rise since the apex cryptocurrency started its latest bullish trend.
UAE Adopting Crypto Trade
A crypto news that brings positivity about the adoption of cryptocurrencies is the United Arab Emirates announcing they will be adopting cryptocurrencies in their international transactions.
According to the foreign trade minister of the United Arab Emirates, he said that cryptocurrencies will now be playing a big role for the country in foreign trade. This is very good news for the crypto industry after the bad events that have been happening in the past months, such as the FTX collapse and Genesis bankruptcy.
FTX Planning a Restart
One of the bizarre crypto stories that one should watch out for this new week is the new CEO of FTX coming out to say the collapsed crypto exchange may try to restart. Despite the huge controversy and eyebrows it raised within the crypto community, the new FTX CEO maintained that anything could happen with FTX.
Users have slammed the idea of FTX's new CEO coming out to say the collapsed crypto exchange could be restarted any time soon. Some community members said anyone who traded with the new FTX exchange upon its restart would have themselves to blame.
FTX isn't the only fallen crypto exchange looking to make a restart after making away with their users' funds. The founders of failed crypto hedge fund 3AC, Su Zhu and Kyle Davies, have also revealed they are looking for investors to join them to restart their fallen crypto firm.
The two founders are currently trying to work with Mark Lamb and Sudhu Arumugum, who founded the crypto exchange Coinflex. They will try to raise about $25 million to restart the failed crypto hedge fund.