OK, that explains, but you misspelled ponzi runner.
Seriously, no legit business can offer 17% in the long run. That itself is a red flag galore... So I guess this will take BTC below 15K.
Genesis Suspending Client Withdrawals for Lending Arm Citing 'FTX Impact'
- Thread starter johnarb
- Start date
OK, that explains, but you misspelled ponzi runner.
Seriously, no legit business can offer 17% in the long run. That itself is a red flag galore... So I guess this will take BTC below 15K.
Yup, but millennials keep falling for it.
A regulated broker/exchange will stake ETH/Sol and pay you 3.5/4.5% on it. Behind the scenes, they are taking the same amount. In total they are still getting under 10% before they split their profits with you.
So when you see 17%-30%... where is the magical extra coming from? Every time we find out, it's been bull-market leverage with a LOT of risk.
No one was offering 17% APR on BTC, the highest I saw was 6%, but it's based on supply and demand, it got down to 3% this year and even lower
When the bear market started, everyone wanted to just hodl and deposit for yield, so there was an over-supply
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Genesis parent company is DCG
Grayscale parent company is DCG
Grayscale GBTC owns 630K btc
Again? But needless to say, this happened long before FTX with other bucketshops. When does all this ever stop? Why would anyone invest in crypto knowing that most of them are merely ponzi schemes is beyond me. Never once have I seen this kind of botched ending (especially when considering how short most of these firms have been in existence) in my 30 years of trading stocks and futures.
Genesis is a traditional finance company that was fucking around with crypto assets lending
Genesis reported $12.5 billion active loans outstanding and processed over $130.6 billion loans in 2021.
"He who lends what isn't his'n, must buy it back or go to pris'n."
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Not sure what you mean by "traditional". By their own admission(s), they were clearly into crypto from day one.
What I meant was that Genesis earned their money from traditional finance business deals like facilitating otc deals and earning a fee, or providing banking services, financing loans. I don't even think Genesis owned any significant crypto assets?
Genesis business is focused on crtypo assets ecosystem, like CME futures trading btc and eth futures or Fidelity Digital Assets procuring bitcoins for their clients
NYDIG, Galaxy Digital, Skybridge and others took directional risk by owning crypto assets
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But let me be clear, the failure of Genesis is due to its traditional finance structure, it blew up because its risk-management failed
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We have crypto projects in Decentralized Finance that provide loans and earn money from crypto assets, Curve, Compound, AAVE, MakerDAO
Last year, AAVE had over $50 Billion worth of loan market in crypto assets and it never touched a single bank
AAVE project never blew up and still operating now even during this bear market. Operating on smart-contract automated risk-management
More info...
Bankruptcy fears for crypto firm Genesis, Grayscale refuses to show proof of reserves
The fallout from the collapse of FTX continues to cascade through the crypto market, with fears one of the industry’s biggest names is in financial strife.
https://www.news.com.au/finance/mon...s/news-story/05e9242f5e1f79465a72906443ec17be
Bankruptcy fears for crypto firm Genesis, Grayscale refuses to show proof of reserves
The fallout from the collapse of FTX continues to cascade through the crypto market, with fears one of the industry’s biggest names is in financial strife.
https://www.news.com.au/finance/mon...s/news-story/05e9242f5e1f79465a72906443ec17be
