The cryptocurrency syndicate known as Digital Currency Group recently made the announcement that they will be winding down its Wealth Management subsidiary known as HQ Digital. As a result of what happened with FTX, people’s faith in the cryptocurrency business is declining. This problem quickly escalates into a significant obstacle for DCG units.
“Due the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ, effective January 31,” DCG said in a statement reported by The Information.
The statement went on to say, “We’re pleased of the work that the team has done and look forward to perhaps revisiting the project in the future,” which was also included in the statement.
This is a warning indicator, because the firm in question, Genesis, is now dealing with a significant liquidity difficulty at this time. The announcement came after Genesis trading cut its personnel by thirty percent, citing the company’s ongoing financial difficulties and the possibility of going bankrupt.
The crypto empire known as DCG is the owner of the troubled cryptocurrency broker Genesis as well as the digital asset management Grayscale.
Compiled by Coinbold