Key Takeaways:
- DCG is shutting down HQ Digital after just over twelve months in business.
- The project was canceled by the company citing the general financial environment and the prolonged crypto winter as reasons.
According to an internal memo, Digital Currency Group (DCG) is closing its wealth management business HQ Digital, The Information reported.
The protracted crypto winter and “condition of the broader economic environment” are posing substantial hurdles to the business, according to a DCG representative who also said that the company may reconsider the idea in the future.
In the initial report, HQ Digital was referred to as “collateral damage in the FTX collapse,” most likely in reference to problems at Genesis Global Capital, a different DGC company. After FTX’s demise in November, Genesis stopped accepting withdrawals and loan redemptions.
A comment from a DCG spokeswoman was also published by the article’s author, Kate Clark, and it backed the assertion that HQ Digital will close as a result of the “broader economic situation” and the “sustained crypto winter.”
Gemini, a cryptocurrency exchange, has recently found itself in the crosshairs after Genesis chose to halt withdrawals. According to rumours, Genesis is home to a startling $1 billion in assets for the cryptocurrency exchange Genesis.
In a public letter to DCG CEO Barry Silbert, Gemini co-founder Cameron Winklevoss noted that 34,000 users of Gemini Earn products are awaiting the restoration of withdrawals.
Reddit users offered hilarious comments in response to the predicament. According to a Reddit user, Winklevoss’ letter to Barry Silbert made it clear that Barry had used both corporate and personal funds while employed by DCG. The user thinks Barry Silbert will be detained before the year is up if it comes out that FTX has an $8 billion hole in its books.
