Genesis Global Capital to Report on Q1 Values

Main customers of Genesis Global Capital, crypto lender firm, are the exchanges and OTC platforms, which prefer to keep users' funds in cold stores
26 April 2019   536

Genesis Global Capital, a division of the brokerage company Genesis Global Trading from the business empire of Barry Silbert, processed $425M in cryptocurrency loans in the first quarter of 2019. Since launch in March 2018, a total of $ 1.53 billion has passed through the firm.

Since the end of last year, active loan book of the company has grown by 17% to $ 181 million, but the average maturity is still six weeks long. The share of loans in Bitcoin was 68%, XRP - 6.7% and Ethereum - 3.6%.

At the same time, the share of shortsists among borrowers significantly decreased - up to 3-5% of the total number. Thus, the main customers of Genesis Global Capital are the exchanges and OTC platforms, which prefer to keep users' funds in cold stores, and to provide trades with borrowed coins.

The company itself takes the coins from large players at 4-5% per annum, and gives them a loan at 6.5-7.5%.

Meanwhile, the direction of fiat loans is still in development phase and it makes only 10% of the company's turnover. Such loans are secured by cryptocurrencies in the amount of 120% of the loan, and margin call occurs when the value of these assets falls below 105%.

It's worth noting in 2018, Genesis Global Capital processed $ 1.1 billion in cryptocurrency loans, with the most active being the last three months of the year, which accounted for more than $ 500 million.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   130

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.

 

The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.

 

The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 

 

The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”