The current crypto bear market has claimed another casualty: Genesis, a cryptocurrency firm, has filed for Chapter 11 bankruptcy protection. This allows the company to continue operating while it restructures. The filing follows the collapses of other major Web3 firms, including Three Arrows Capital (3AC) and FTX, to which Genesis had significant exposure.
After the damage caused by centralized DeFi firms, how can decentralized projects like Metacade help address Web3’s structural problems?
What happened to the cryptocurrency company Genesis?
Genesis, a crypto lending company, filed for bankruptcy following the 2022 implosions of 3AC and FTX. The platform previously had significant exposure to both firms, which filed for bankruptcy in June and September respectively.
The collapse of Three Arrows Capital is believed to have cost Genesis hundreds of millions of dollars, while the platform’s exposure to FTX has been estimated at $1.2 billion. As a result, Genesis filed for bankruptcy more than two months after freezing customer withdrawals, as the company seeks to restructure in the wake of its losses.
Crypto lending typically requires users to post collateral. Borrowers can then take loans worth a percentage of that collateral, often to earn investment returns, capture staking yields, or to trade and withdraw additional borrowed funds.
Genesis operated as a centralized crypto lender, which adds a layer of counterparty risk compared with decentralized lending alternatives like Aave. In decentralized protocols such as Aave, the platform does not gain discretionary access to users’ collateral after it is supplied, which can make decentralized lending more resilient during market turbulence.
What does this mean for the new cryptocurrency Metacade?
Metacade rewards gamers financially through smart contracts, similar in concept to how Aave automates financial operations. Metacade recently passed a security audit by Certik, validating the effectiveness of its smart contracts and helping demonstrate that the platform is robust and secure for the long term.
Following the successful smart contract audit and a variety of built-in token-earning mechanics, Metacade’s presale phases sold out quickly. The project is currently in phase 5 of its presale and has raised over $7.8 million since the sale began, drawing rapid investor interest in this arcade-style metaverse.
What is Metacade?
Metacade is the first community-run arcade on the blockchain and the largest project of its kind. The arcade metaverse will host a broad collection of Web3 play-to-earn games, each offering integrated financial rewards to players who progress and compete online.
In addition, Metacade aims to become a central hub for the Web3 gaming community. The platform will surface the latest industry news, highlight alpha releases, and share guidance to help players maximize their gaming experience.
Beginning in 2024, Metacade plans to transition into a decentralized autonomous organization (DAO) and transfer key governance roles to its community. Operating as a decentralized initiative helps protect the platform over time and reduce risks of mismanagement similar to those that affected centralized lenders like Genesis, 3AC, or FTX.
How does MCADE work?
The arcade metaverse supports both casual and competitive play: in either mode, players can earn crypto income online. Solo players can advance through endless levels in some of the most popular blockchain arcade games, while competitive players can face off in head-to-head matches via the Compete2Earn feature to win significant prizes paid in MCADE tokens.
The community hub also rewards users for meaningful contributions, such as publishing game reviews, sharing alpha builds, and engaging with other members. Users earn crypto rewards for valuable content they create and share on the platform.
Metacade is also creating new job opportunities for crypto enthusiasts through its Work2Earn feature. Work2Earn includes part-time and full-time roles across notable Web3 companies, covering outsourced tasks and beta-testing positions for new games.
Is Metacade truly innovative?
Metacade blends several compelling features of Web3 with classic arcade-style gaming. The platform advances crypto earnings by providing new job pathways and directly rewarding content creators. As a community-driven project that will eventually convert into a DAO, Metacade is structured to avoid many of the governance and counterparty risks faced by first-generation crypto lending and yield platforms.
Metacade is positioned as a pioneering force in blockchain gaming. The platform is also funding the next wave of innovation through its Metagrants program, where community members vote to select promising game ideas that receive initial funding to become playable products.
Is buying MCADE worthwhile after Genesis’s bankruptcy?
The MCADE token presale may represent a compelling buying opportunity, especially in light of recent failures at centralized platforms like Genesis, 3AC, and FTX. Metacade’s fully decentralized, community-led model aims to offer strong earning potential for users, which analysts cite as a key reason for expecting significant token appreciation over coming years.
At its current presale price of $0.0155, Metacade offers potentially high upside. The presale is the optimal time to participate, as the token is expected to appreciate when the sale concludes. Consider reviewing the Metacade presale details before it ends.
You can participate in the Metacade presale here.