Publicly traded firm Tokens.com has provided an update on company holdings kept with Genesis Global.
Tokens.com has an open loan facility with Genesis whereby the company is required to post collateral in token assets.
The collateral was worth $890,000 as per the closing price on January 18, Tokens.com has a loan outstanding against the collateral of $138,000.
Tokens.com has requested for its collateral to be returned and its loan repaid in full.
However, Genesis has halted redemptions of collateral for all lending clients and has allegedly been diving into the logistics of bankruptcy protection, something that could put the company’s value and net collateral at risk.
Although the unavailability of such tokens sounds problematic for Tokens.com’s financial stature or overall modus operandi, the company remains well-capitalized and able to meet its plans for the future.
Aside from crypto-assets held with Genesis, the remainder owned by the company is held in internally managed wallets with no risk of custody issues or third-party management.