Shares of cryptocurrency exchange company Coinbase Global (NASDAQ: COIN) were crushed on Wednesday as problems from now-failed exchange FTX continue to trickle down through the industry. Today, another major crypto player announced that it's strained to the max, making investors fearful that something could eventually happen to Coinbase as well. As of 10:30 a.m. ET, Coinbase stock was down almost 10%.

According to official social media posts today, users of Genesis' platform are submitting more withdrawal requests than what the company has in liquidity. For context, FTX was the world's third-largest cryptocurrency exchange, but it filed for Chapter 11 bankruptcy protection last week. And this has understandably caused investors to start pulling resources out of centralized entities like Genesis.

To be clear, Genesis said that users can still trade on its platform. It's only pausing loan redemptions and new loan originations. On one hand, this sounds like a minor inconvenience. But every crypto firm that's gone down in 2022 began its descent by downplaying the extent of the damage. 

Continue reading

Source Fool.com