Ava Labs CEO John Wu: Genesis Global Capital collapse far more dangerous than FTX bankruptcy

Ava Labs CEO John Wu says the possible collapse of Genesis Global Capital is far more dangerous to the digital asset market than the bankruptcy of the FTX exchange.“In my shoes, I really think Genesis is a much bigger problem than FTX in terms of cryptocurrency capital markets. Genesis was the biggest lender. They made both unsecured and secured loans. No one else was providing this kind of lending. Without them in the markets, all the people who are involved in the value chain, all the companies, like market makers, who just need to borrow to supply the market, will suffer. You’re going to see liquidity leave the markets, spreads widen, investors won’t be there. Genesis is a very important part of the cryptocurrency markets,” he said.Earlier this month, Genesis suspended withdrawals due to liquidity issues.