Genesis Is Now Front Stage

7d
LeoFinance
4 Min Read
760 words

gen.jpg

Genesis Is Now Front Stage

The never ending bad news and blow out from FTX and crypto in general just keeps on piling up. What I believe started with a blow out of LUNA and just kept piling up into the mess we see today continues to paint a very negative picture for crypto. Ever time I feel we have hit the bottom some new mega news comes to light of another massive company called Genesis now comes to light.

Some Basic Details On Genesis

What Is Genesis?

Genesis is one of the largest middle man between wall street and crypto. They do billions in trades, loans and transactions monthly.

Genesis is looking to raise capital right now in a time when investors could care less about investing and liquidity is extremely hard to come by. The chances of them getting out are looking rather slim and very well could be the next blow. If this blow happens I can finally see bitcoin going below 16K and holding below it to more around the 10k-13k range pretty much erasing the last 5 years of growth. One of the most damaging times to the crypto space ever and you have to seriously start wondering if this was all a big plot for the USA government to establish dominance and oversight.

The Current Issues

For some reason all of these companies fall into the same issues that every day people do. Not your keys not your crypto is a common thing we hear but so few practice. There is NOTHING wrong with crypto and everything wrong with centralized entities trying to handle money. Bitcoin and crypto itself works just as it's suppose to and the only reason we are in this mess is because people continue to try and find that quick road to riches. That road of promises record high APR rates that pay out HIGHER than what the normal staking rate of the token is. It legit makes no sense what so ever yet no one does any math on it and just assumes wow what an amazing offer!

I'll admit it's why I still question the legitimacy of HBD holding a $1 peg at 20% APR. I know it's been talked about time and time again but that printed money no matter how small or big it is has to come from somewhere.

Genesis has a massive $175 Million dollar fund lock exposure to FTX which I'm sure either we wont see a penny of it returned to people or locked up for years. Thus there's no hope for this company along with many others who had exposure to FTX. Just a quick side note for the amount of damage FTX did at least for only those crimes he's looking at max 20years. But with his close connections we will see if he even see's a day. Personally I could care less if he went to jail. I'd rather see him unable to ever conduct any type of business ever again instead.

Time will tell if Genesis will be the next to fall and if it does it could cause some major blow back and crushing results to crypto that last for a while.

The Solutions

Looks crypto and money is not hard yet human nature continues to go after the unicorn. That mythical high APR that screws you over time and time again. Sure it's sexy for a few months, maybe even a few years but then it blows up in your face.

These companies need to start getting away from all this flash and go back to boring. If a company is offering you a 10% APR on a token that only earn 6% APR from staking you know they are doing other things with it they shouldn't be such as lending it out and taking on increased risks. It also means they are not 100% back and if there's a run on pulling the crypto out it wont be there.

Keeping it boring WORKS and keeping it boring while collecting some funds off the top say a 6% APR and you offer 4% to your customers and keep 2% that 2% could be invested into riskier projects because it's not hurting the bottom line. It's not sexy, it's boring but guess what it freakin works! Take that as a lesson and also be sure you hold your own crypto in your own wallets as much as possible. Every time it's out of your wallet/keys it's at risk.

Posted Using LeoFinance Beta


It's bloody frustrating that I hear from some of these for the first time when they are collapsing yet the effects are felt throughout the whole crypto space.

Posted Using LeoFinance Beta

1

https://twitter.com/777743941617713152/status/1595315895584309248
The rewards earned on this comment will go directly to the people( @bitcoinflood ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.

0

Yay! 🤗
Your content has been boosted with Ecency Points, by @bitcoinflood.
Use Ecency daily to boost your growth on platform!

Support Ecency
Vote for new Proposal
Delegate HP and earn more

0