Institutional crypto loans firm Genesis Global Capital said that they have processed more than $1.1 billion in lends and borrows in the year 2018.
On Tuesday, the firm published their most recent “Digital Asset Lending Snapshot” wherein they announced that they had more than doubled their loan originations during the last three months of 2018, in comparison to the previous six months. The company said that they had processed $500 million in loans during the months March and October 2018, and the same amount during October and the end of December.
In a report, the firm said thus- “Over the past year, with the help of client feedback and the rise of derivative marketplaces, we have witnessed a meaningful increase in the number of market participants who wished to borrow and/or lend digital currencies.”
The CEO of Genesis, Michael Moro said that the crypto bear market could have been one of the essentially possible factors in the company’s revenue, and said that as the demand for loans in terms of both cryptocurrencies, as well as fiat, grew dramatically last year, and this demand has been particularly high for cryptocurrencies. The company’s very own fiat product is a new product, which will go live in Q4.
A snapshot revealed that by the end of 2018, the company had indeed processed $638 million in loans and $475 million in borrows, and had $153 million in active loans.
The company’s major part of the loan portfolio had remained to be bitcoin (about 60 percent), and it had nearly 20 percent of the portfolio which included XRP and other cryptocurrencies.
The snapshot also provided an in-depth look at Genesis’ loan book, and this included highlights in certain trends which the company’s analysts had examined.
Moro said that the most interesting trend was some sort of a counter to the narrative which stated that short sellers were responsible for various cryptocurrencies which witnessed a falling price last year. The company examined Ethereum and said that it wasn’t short sellers who caused the prices of Ethereum to drop. He said- “The short sellers end up waiting for the price of Ethereum to go down before they get in to trade, and they don’t behave as catalyst … they just piggyback … Short sellers exacerbate the magnitude of the selloff and then join the crowd, they don’t start the crowd. Depending on the price action in 2019, which would dictate what would happen in the early year, people will continue to borrow for shorting if the prices remain stable. If the price rises, which is not likely, if the price is falling, yes.”
He said that they hadn’t laid off any employees even while going through the bear market, like other firms have, and explained that this comes as a part of Genesis’ slow hiring process, instead of hiring a huge number of individuals in a short period of time. The company also has plans of growing their team, and this includes hiring developers and expanding to Europe as well as Asia. If crypto winter lasts for two more years, it won’t be surprising. I don’t hope so and I am planning my business around such a possibility.