Genesis Global Capital Processes Nearly $1.1 Billion USD In 2018 for Institutional Crypto Loans
Genesis Global Capital, a crypto loan company, was able to process $1.1 billion USD in lends and borrows last year. The company, which is an affiliate of Genesis Global Trading, published its report for last year yesterday, January 29, and it announced that its business was booming in 2018.
Quite surprisingly, the business stayed strong at the end of the year and even surpassed all the expectations from the company, with Genesis doubling its loan originations in the last three months of the year, despite the fierce bear market that the market faced.
Between March and October 2018, the company was able to process half a billion dollars in loans and then it achieved this mark again between October and December. It was quite the growth.
The reports from the company affirm that the year saw a massive increase in the profits of the company and that the rise of the derivative market and client feedback made for a meaningful increase in the number of clients.
Michael Moro, CEO of Genesis Global Capital, has affirmed that the crypto bear market could, in fact, have impacted the company, but it did in a positive way. He believes that the demand for loans may have grown in the last part of the year because the companies were facing a critical phase of their businesses and they needed loans.
Most people borrowed Bitcoin (60%), nearly 20% of them borrowed XRP and the other 20% were for many different cryptos, but mostly the ones with a high market cap like Ethereum.
About Short Sales And Ethereum
Moro used the occasion to talk about short sellers as well. According to him, the numbers highlight some trends that may surprise investors like the fact that people shorting cryptos are not the reason why the prices fall.
According to the CEO, you can see that they have not caused the price drop of Ethereum, for instance. The fact is that they prepare their short positions and wait until the market is ready for a sell-off. As soon as people start selling the tokens, they just piggyback on it and go on together for the profit. They are the people who join the crowd, not the crowd itself.
Short sellers are, according to Moro, momentum traders. They wait right up until the moment and then do it. He believes that, depending on the market in 2019, people will continue to borrow money in order to shorten their positions if the price remains stable. However, if it goes up, then probably now.
The Bear Market And The Future
At the time, Moro has also affirmed that the company did not need to fire anyone in order to keep its business afloat at the end of 2018. This, he believes, is because the company hires slowly instead of hiring blocks of individuals at the time in short periods of time. The idea is to grow the team steadily and slowly.
Moro believes that it may take years in order for the market to recover and affirms that he would not be surprised if things remained bad for at least another two years. At least it looks like things will be going well for his company in either case.