* Our Parent Company Crypto Token is LIVE!!! *Flag Token

The Fintech Files: Genesis falls, Revolut stalls, the FCA calls

Date:

Share post:


Another week, another crypto bankruptcy. 

This time it’s Genesis, the Barry Silbert-owned lender that lent hundreds of millions of dollars to FTX-affiliate Alameda Research. 

But Genesis’ demise is more than just a tale of the contagion brought on by the FTX scandal. It also spells the end of an era for crypto’s pseudo banks.

It is the latest major firm in the space that tried and failed to bring the centuries-old banking business model to digital assets. Genesis and its peers made money by taking crypto deposits for a promised rate of interest, lending the funds to other firms for a higher rate of interest and pocketing the difference. 

To be fair, it lasted longer than Celsius and Voyager, which both filed for Chapter 11 bankruptcy in July, or BlockFi, which followed suit in November.

They all came unstuck, it seems, because of poor risk management. Crypto lenders were highly reliant on a few big players who they hoped would keep paying big returns, such as Alameda and collapsed crypto hedge fund Three Arrows Capital. 

“They’re all interconnected,”…

Read more…

Related articles

How to Become a Blockchain Developer

It’s been a rough year for cryptocurrencies, with the collapse of crypto-centric companies like FTX forcing coin prices...

Bitcoin UTXOs Older Than 5 Years Surged During Bear Market

UTXO or unspent transaction output is the amount of bitcoin someone is left with after executing a transaction. Read...

DailyPay Announces $260 Million in New Funding

DailyPay announced it has secured $260 million of capital to fuel growth domestically, expand internationally and further invest...

India Keeps Restrictive Crypto Tax Rules in 2023 Budget

India has kept its restrictive crypto tax rules unchanged in 2023. In fact, Finance Minister Nirmala Sitharaman did...