Hours after it became known that DCG’s crypto trading subsidiary Genesis plans to file for bankruptcy, another media house CoinDesk has now gotten into trouble.
DCG’s own media publication may have hired consultants at the Lazard Group for a possible sale. The move would mark CoinDesk’s exit from Barry Silbert’s Digital Currency Group.
The Wall Street Journal was the first to report the news that CoinDesk had hired bankers at Lazard. Additionally, CEO Kevin Worth said in an email statement:
“Over the last several months, we have received numerous in-depth indications of interest in CoinDesk.” He added that Lizard will help CoinDesk “explore various options to raise growth capital for the CoinDesk business, which may include a partial or full sale can”.
FTX contagion spreads to CoinDesk
Launched in 2013, crypto media publication CoinDesk was one of the first to report on the balance sheet issues at Sam Bankman-Frieds Alameda Research. This report evolved to reveal a deeper hole in FTX and eventually led to the bankruptcy of both companies.
However, the contagion of the FTX collapse has hit CoinDesk and its parent company Digital Currency Group (DCG). DCG’s subsidiary and crypto lender Genesis filed for bankruptcy last month, putting crypto exchange Gemini in more trouble.
Many market analysts have warned that the collapse of crypto exchange FTX is likely to spread further in the market, hitting several crypto firms this year. However, major issues at the Digital Currency Group (DCG) could put the crypto market in greater trouble considering it controls the world’s largest digital asset management firm, Grayscale.
While DCG hasn’t claimed any issues at Grayscale, investors should keep an eye on developments. This 2023 has started with some much-needed relief for crypto investors as Bitcoin and the broader crypto space have seen a strong upswing.
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