The great cryptocurrency news yesterday that was the Dutch cryptocurrency exchange Battle has a problem with a $280 million price tag. From a recent interview van Quote with Bitvavo CEO Mark Nuvelstijn, it seems that the problems ultimately will not be too serious for the customers themselves.
“We will always pay Bitvavo customers”
Encountered FTP extension fresh in memory, yesterday’s news obviously came as a bit of a shock. Bitvavo will receive another 280 million euros from cryptocurrency lending platform Genesis, an amount it cannot repay due to liquidity problems. A painful blow for an exchange like Bitvavo.
In the interview with Quote, however, Nuvelstijn is clear: “We promise to always pay our customers if necessary.” Yesterday, the exchange already announced that it will fill the €280 million gap itself, if the money does not come back at all.
Quote asked the CEO if that means Bitvavo has $280 million in savings, to which Nuvelstijn simply replied “yes.” That should sound good to the many Bitvavo users. This means that the trading platform can absorb the blow.
Bitvavo has no other builds except with DCG
What is also reassuring is the fact that Bitvavo has no other similar build with other parts like DCG. Digital Currency Group (DCG) is the parent company under which Genesis falls. It is therefore difficult for now to read similar news on important amounts linked to other subjects.
Previously, the cryptocurrency exchange announced that it is not in danger due to the situation in Genesis. Nuvelstijn says, “We didn’t know it was a problem” and that the company was primarily concerned with finding a solution for customers. The CEO’s words now demonstrate that there is a solution. If DCG cannot repay the €280 million, Bitvavo will pay out the amount itself, a luxury it has with a string of profitable good years under its belt:
“Bitvavo earned a total of 175 million euros in 2021. Furthermore, we have always done well in the previous years” – the CEO of Bitvavo told Quote
Want to learn more about this Dutch cryptocurrency exchange? Read here Bitvavo review op Crypto Insider.
