End of Crypto? Story Of Crypto Genesis - (END OF DCG) COMING..

#304・
8.41K

subscribers

306

issues

Subscribe to our newsletter

By subscribing, you agree with Revue’s Terms of Service and Privacy Policy and understand that Master Life, Money and The Markets With DCG will receive your email address.

Master Life, Money and The Markets With DCG
GEMINI PAUSED WITHDRAWALS.
YOU THINK FTX GOING DOWN IS BAD?
LET ME EXPLAIN THE STORY OF GENESIS…
If this is really the end for Genesis, this could be more impactful than FTX.
(By the way DCG Mastermind is here to stay, but the big DCG GROUP FUND that includes Genesis, is in deep trouble)
So we all know FTX going down was bad for the entire crypto market.
FTX hurt liquid funds and consumers.
Genesis impacts nearly every company in crypto.
For those who aren’t familiar, Genesis started as the first OTC Bitcoin desk in 2013.
They’re now crypto’s largest lending desk.
Genesis is part of DCG, Barry Silbert’s holding company that owns CoinDesk, Foundry, Genesis, Grayscale, and Luno. DCG also runs a huge VC firm.
In the height of the market, Genesis was moving SIZE.
Then 3AC happened. Then things continued to unravel.
Genesis also had large exposure to Babel Finance, the CeFi platform that got hit hard in the June unwind.
In August, longtime CEO Michael Moro resigned. Nearly everyone I know who was at Genesis is no longer there.
Genesis was the biggest creditor to 3AC having lent them a whopping $2.4 billion. By Q3 2022, their numbers had fallen drastically.
- $8.4B in loan originations
- $2.8B active loans
- $18.7B spot volume traded
- $9.6B derivatives traded
Still, everyone felt like they were crypto’s safest counter-party.
Check out these Q4 2021 numbers:
- $50B in loan originations
- $12.5B active loans
- $31B spot volume traded
- $21B derivatives traded
So why is the downfall of Genesis so bad?
Dozens of companies like Gemini use Genesis to help their consumers earn yield.
If you’re a CeFi platform that offers yield, you probably use Genesis.
Using some rough numbers and simplifying the process a bit, here’s how it works..
You give your crypto to Gemini → Gemini gives your crypto to Genesis → Genesis lends your crypto to a fund → the fund borrows from Genesis X+2% → Genesis gives Gemini X+1% → Gemini gives you X%
Voila! You now earn yield.
This only works if the counter-parties that Genesis lent to can actually repay their borrow.
If Genesis can’t get their crypto back, they can’t give the crypto back to Gemini (or insert any other crypto CeFi platform), which means Gemini can’t give you your crypto.
So why is this so bad for crypto?
Every whale I know that plays in crypto gives money to Genesis.
Instead of earning yield on the BlockFis and Geminis of the world, they give direct to Genesis to earn yield.
Now those institutions, family offices, and whales can’t get their crypto back.
This is why Genesis halting withdrawals is so bad.
They sit at the direct center of crypto capital markets. They custody funds. They help institutions earn yield. They are the yield product for CeFi platforms.
It’s not good.
Where do we go from here?
Hopefully DCG has the funds to backstop this. I would assume they don’t and that they’re racing to raise money right now.
They raised at $10B in Nov 2021. I’d guess they raise at a valuation roughly 10-20% of that.
If you have funds on a CeFi platform, think about going to cold storage using Ledger.
If you really don’t want to go to cold storage, use metamask, atomic wallet, or trust wallet. Any wallet, not on a central exchange.
Long live DeFi, the crypto market will be back, and the DCG Mastermind will still be navigating the waters safely.
If you have any amount of crypto, its critical you connect with the Mastermind, you don’t want to be out in the cold. It’s winter time in crypto.
You don’t want to miss out on SPRING.

Genesis Global halts withdrawals citing 'unprecedented market turmoil'
Other Notable News This Week
📌 $15,600 is the new bottom of bitcoin. 
📌 Inflation in the US fell to 7.7% and gives hope for the soft policy of the Fed, and the Republicans were able to win the elections in only one house of Congress.
📌 FTX (https://twitter.com/ftx_official/status/1591071832823959552) declared itself bankrupt and Sam resigned as CEO.
📌 Alameda Research commitments are (https://www.wsj.com/livecoverage/stock-market-news-today-11-11-2022/card/here-s-alameda-research-s-bankruptcy-petition-XtXVzWRLi12KiwhO7sao) from $10 to $50 billion, the fund itself was liquidated.
📌 FTX Founder’s Net Worth Decreased in 1 Day -buy-ftx from $15.6 billion to $992 million.
📌 The IMF announced (https://www.bloomberg.com/news/articles/2022-11-07/global-inflation-may-be-nearing-its-peak-imf-s-georgieva-says) that the global inflation.
📌 The European Commission has offered (https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_6701)Ukraine funding for 2023 in the amount of €18 billion.
📌 US authorities confiscated (https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction) more than 50,000 BTC, which in 2012 were earned through the darknet marketplace Silk Road.
📌 Vitalik Buterin showed (https://twitter.com/VitalikButerin/status/1588669782471368704) updated Ethereum roadmap.
📌 Binance and the Ministry of Digital Development of Ukraine will add (https://psm7.com/diya/binance-i-mincifry-integriruyut-v-diyu-kriptovalyutnye-platezhi.html) cryptocurrency payments to the Diya public service.
📌 Apple had to cut (https://www.apple.com/in/newsroom/2022/11/update-on-supply-of-iphone-14-pro-and-iphone-14-pro-max/) iPhone supplies 14 due to covid quarantines in China.
📌 Mining company Iris Energy announced (https://www.sec.gov/Archives/edgar/data/1878848/000114036122040124/brhc10043824_6k.htm) defaulted on $103 million in debt.
📌 Binance set (https://www.binance.com/en/blog/community/our-commitment-to-transparency-2895840147147652626) an example to other crypto exchanges by publishing data on its own reserves.
📌 Venture firm Sequoia Capital acknowledged (https://twitter.com/sequoia/status/1590522718650499073)a loss of $213 million in FTX investment, but reassured clients that everything is fine.
📌 Tether froze (https://whale-alert.io/transaction/tron/ab9ad4b118ab3de9fd7b0117ebd167c9950418905436bb7fc30f49adb4f59ce7) FTX wallet with 46M USDT on TRON network.
📌 BlockFi Crypto Lending Stopped (https://twitter.com/BlockFi/status/1590875997351866368) withdrawals due to FTX crash.
📌 Coinbase laid off (https://www.coindesk.com/business/2022/11/10/coinbase-sheds-roughly-60-jobs-as-cost-cutting-continues-amid-bear-market/) 60 employees for cut costs.
Binance chief says near collapse of FTX ‘severely’ eroded confidence in crypto industry | Financial Times
Could FTX’s Collapse Signal Even Tougher Times for Crypto? Here’s What to Know. - The New York Times
Silvergate records reveal $425M in transfers to South American money launderers
First Industry Pilot for Digital Asset and Decentralised Finance Goes Live
EverEarn Co-Founder Dave Rahman Explains How to Build a Startup That Will Stand the Test of Time – Interview Bitcoin News
New Crypto-friendly Politicians Are Headed to Washington - Blockworks
DCG TRADE SECRETS  10 Page Trading Plan - Special Delivery Every Month Crypto, Stocks, Options, Mindset!
Did you enjoy this issue? Yes No
Jamar James - Master Trader
Jamar James - Master Trader @Jamar_100

Master Money - Master Risk - Master Trading - Master Time Management - Run Business and Trading On Auto Pilot!

In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.
Digital Currency Guy, 555 Anton Blvd Suite 208 The Met, Costa Mesa, CA 92626