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Last week, Genesis Trading started distributing about $4 billion to its creditors as part of its restructuring process. The failed cryptocurrency lender has now finished its bankruptcy proceedings and is starting to pay out a combination of digital assets and cash.
This is when there is a potential threat emerging in the Shiba Inu (SHIB) market.
It has come to light that Genesis Trading has 21.9 billion SHIB, worth about $294,640. This big holding by the now-bankrupt broker is reminiscent of last year’s situation with Voyager and Shiba Inu. Even though the amount is a lot smaller this time, the fact of selling itself could still have an impact on the market.
More FUD incoming?
Genesis’ plan has been announced at a time when the cryptocurrency market is already experiencing fear, uncertainty and doubts. The potential sale of a large SHIB holding could make existing market concerns worse.
On a bright side, the latest press release says that the bankrupt lender does not plan to limit compensation based on asset values as of the bankruptcy filing date. Customers will receive an average of 64% in-kind reimbursements in this initial distribution.
The exact compensation varies by asset type. For example, creditors holding Bitcoin will get 51.3% of their claim, while those with Ethereum can expect to recover around 66%.
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