CoinDesk’s Recent Struggles Open Up Important Questions About Journalism and Crypto
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CoinDesk, a cryptocurrency-focused online database, is facing questions regarding the operations and financial stability of a few of CoinDesk’s subsidiaries. It is worth recalling that CoinDesk is the organization that broke the story that prompted FTX to declare bankruptcy.
NFA, imo since #ftx collapsed, Ive had concern other big players were insolvent.
When @GenesisTrading halted their withdrawals for Gemini earn, that concern expanded to their parent company, DCG.
— VivaLaCoin (@VivalaCoinBTC) January 17, 2023
Digital Currency Group, the parent company of CoinDesk, makes investments in several cryptocurrency projects. However, it is now experiencing operational and financial difficulties. Digital Currency Group is one of the companies that has its financial issues and operational concerns. It is a component of the larger effects of FTX’s failure on the cryptocurrency market.
Digital Currency Group (DCG), has reportedly discontinued distributing quarterly dividends. Notably, the collapse of FTX and the hedge fund Three Arrows Capital badly harmed the lending arm of DCG’s trading company Genesis, forcing it to cease withdrawals.
— Currency Times (@CurrencyTimes) January 18, 2023
CoinDesk & Its Parent Company
CoinDesk has written extensively on its owners as a result of the incidents involving its parent firm. Additionally, CoinDesk has written on related incidents that have happened during the previous several weeks.
CoinDesk has also covered related events that have taken place. CoinDesk covered DCG similarly to all other firms in the cryptocurrency field, according to the chief content officer of the publication, Michael Casey, in a statement to The New York Times.
The director of communications for Digital Currency Group, Amanda Cowie, refused to provide any comments on the investigation. She insisted that their company had no editorial control over CoinDesk. She affirmed that for the benefit of the sector, the media outlet must operate autonomously.
According to CoinDesk’s chief content officer, Michael Casey, the company is committed to building a reputable media outlet that covers the cryptocurrency market impartially. CoinDesk has continuously focused on Genesis’ layoffs, the government inquiry, and DCG. Additionally, it has often reported on arguments between DCG CEO Barry Silbert and Gemini co-founder Cameron Winklevoss.
The CoinDesk company published a story on FTX that Alameda research its sibling company could be having financial issues. As a result, numerous problems emerged. A week later, Alameda and FTX filed for bankruptcy, and Bankman Fried is now charged with federal fraud.
CoinDesk company was one of the first to specialize on crypto reporting. The firm started in 2013, and by 2017, it had only 10 workers. The company immediately expanded after the 2021 crypto boom, and it now has over 160 employees worldwide.