Recently, the crypto wallet Luno assures its users’ funds are safe. These comments are caused by the leaked information about Luno’s sister company Genesis Trading and its massive crypto funds loss. In turn, it is also due to the report presented by CoinDesk showing how high the company Genesis Trading’s money loss is.
Luno, like other cryptographic firms, slows down in its operations after the fall that the primary tokens have faced in the virtual market. As the spokesperson at CoinDesk would indicate, the company would be losing millions of dollars in recent weeks, which coincides with the bearish streak that cryptos have experienced.
Luno’s partner loses money dragging the company down
Luno, like other cryptographic firms, slows down its operations after the fall that the primary tokens have faced in the virtual market. Likewise, this fall is linked to the allied firm’s recent exposure with Babel Finance and Three Capital, according to CoinDesk.
To enter into context, the company Three Capital face a liquidation case by the regulators in the British territory. This is because its central fund in cryptos lost $2 trillion due to the virtual market’s bearish streak in recent weeks. However, Bloomberg magazine clarifies that there is still no exact figure for the losses Genesis presents since the firm seeks to recover through reimbursements to its counterparties.
CoinDesk maintains that the problem started with the USDT imbalance in June and quickly widened. According to cryptocurrency experts, Genesis, a potential partner of Luno, faces serious problems that could put it out of circulation.
Crypto platform ensures that its users will keep their funds
Seeing such a big problem on Genesis, some users on Luno might wonder how safe their funds are on the crypto interface. It’s good that Luno offers crypto deposits to accounts using Genesis to earn more interest for its customers. With this strong bond, it’s no wonder customers believe that if Genesis goes down, so will their business partner.
However, an agent of the crypto company said that the interface would be able to authorize the transfer of funds safely. This is because Genesis showed progress in solving problems, ensuring that there would be no losses. The statement indicates that any product associated with loans has risks, but the company tries to reduce them to the client’s satisfaction.
For March 2022, the crypto company changed its interest rate for Bitcoin to 1.5 percent each year. This would mean a drop in the tax rate, knowing that it previously reached 2 percent. In the case of Ethereum, the firm would be charging 2 percent per year from the first quarter of the year, and before, it was 3 percent for the same period.