Cryptocurrency

Genesis Capital Handled Around $1.1 Billion Last Year

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A crypto lending firm named Genesis Global Capital, which is an arm of Genesis Global Trading stated that it has handled over $1.1 billion last year, including lends and borrows

The firm recently has published one report named ‘Digital Asset Lending Snapshot’ which states that the lending firm had handled (in the last three months of the previous year) over than double of what it handled in the first six months of 2018. The company processed $500 million in loans between March and October (last year), and again between October and December.

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In the report, the company has also said that based on the client’s feedback and the increase in derivative’s market space over the last year the company has witnessed a rise in the participants of the crypto lending and borrowing market. The report has also shown that at the end of the year, the company had helped in passing $638 million loans along with $475 million in borrows and active loans worth $153 million.

The chief executive officer of Genesis, Moro, has informed that the bearish trend in the crypto market is one of the factors which has affected the revenue generation amount of the company. He said that the demand for loans in cryptocurrencies and fiat currency has increased since 2018. Specifically for the shorting cryptocurrencies. The firm has recently launched its fiat product.

Among the total loan processed by the company, Bitcoin had a contribution of around 60 percent, XRP was loaned and held a contribution of around 20 percent of the portfolio and the remainder constituted through other cryptocurrencies. The company has also included a specific pattern which its team of experts has observed in the working of the market.

The CEO stated that the most exciting trend shown by the market was the counter of the belief that the short sellers are the one to blame for various cryptocurrencies falling last year. He said that as per the examination is done by the experts of his company, ethereum was one example of a cryptocurrency which was shorted by the traders, and instead of short sellers causing a falling price in ethereum, the opposite was exact.

He said that short sellers tend to observe and wait for the price of crypto to fall before they enter the market. They are not here to influence the market trend by any means; they merely piggyback. These people do not start any new trend in the market or cause any change, they just ride the current market wave and earn a profit. Moro says these types of short sellers are momentum traders.

He also said that Genesis has been working correctly and has adopted a practical and balanced framework; this is one of the reasons why the company did not have to lay off its employees even during the bearish market trend.

He said that the company believes in hiring slowly. As the crypto market is recovering ( but it will take a few years as per Moro), he believes the company would also get a more significant ground to operate.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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