How Genesis Capital ‘Won’ the 2018 Bear Market
Genesis Capital could have ‘won’ the bear market. Yes, you heard that right, someone could be the champion of what was the devastating 2018 bear market, having built a multi-billion dollar firm on the back of a horrific bear trend that saw bitcoin lose 70 percent of its value.
Recently, CryptoSlate had the chance to sit down with the CEO of Genesis Capital and Genesis Trading, Michael Moro where they discussed several topics including why and how the largest stakeholders in crypto are buying and borrowing in a rapidly institutionalising industry.
A small loan of 3 billion dollars…
In 2013, Digital Currency Group-owned Genesis Trading made a calculated move to set up its business in New York as one of the industry’s first OTC market makers dealing in these big-ticket trades for the high net worth individuals and institutions.
But last year was where things started to get cooking. Moro says that the crypto market saw an entrance of “sophisticated” participants willing to actively trade.
“Because of 2017 and the crazy price run, we had a lot more sophisticated investors. The traditional buy and hold guys, they were always there. What we didn’t have was the more sophisticated institutional hedge funds that first got their feet wet in 2017, and could take advantage of a lending market in 2018.”
The timing of Genesis Capital’s early-2018 launch then skyrocketed the company to success.
Over a year later and Genesis Capital the biggest lender in the crypto space. Moro said the firm has originated over $3 billion in crypto and cash loans…
The Rise of Crypto
The rise in the price of cryptocurrencies has been often accompanied by an increase of general interest by big institutional investors such as Genesis Capital. At the end of 2017, we saw a lot more people enter the market who probably had never even heard of cryptocurrency and get involved with the space.
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