Decentraland revealed that it has a credit against bankrupt crypto lender Genesis Trading.
Genesis Global Trading was a popular Crypto lender company but due to its significant exposure to the FTX exchange, which filed for bankruptcy on 11 Nov 2022, it faced huge financial loss. On 19 Jan 202, Genesis filed for bankruptcy under the chapter 11 code in a bankruptcy court in New York. A recent report claimed that Genesis planned to announce a new plan for its creditors to exit the bankruptcy proceedings.
On 21 Jan 2023, the Decentraland Crypto project revealed that it has a credit against Genesis of principal amount approx USD ~7.8M but its treasury will not face any big impact because of these funds’ loss.
Further the team confirmed that they will provide their services as usual without any issues or interruptions.
“The Decentraland Foundation continues to conduct business as usual and to support the Decentraland community under the role assigned to it in the Foundation Charter,” the announcement read.
Moreover, Decentraland confirmed that there are no other kinds of financial relationship with Genesis, and also its treasury will not face any kind of financial challenge.
Mana price action
Mana is a native token of the Decentraland crypto project. This project team provides virtual lands for people to set up their digital services in its virtual world.
Despite this negative news, mana token faced no negative impact on its trade price.
At the time of writing this article, the price of the mana token is $0.74 and this price is 17% higher than the last 24 hours’ trade price.