Binance CEO Said To Be Interested In Buying Genesis’ Loans – And Why Not?

Bitcoinist

After showing interest in buying liquidity troubled FTX but later retracted his offer within 24 hours, Binance big boss Changpeng ‘CZ’ Zhao is said to be interested on acquiring Genesis’ loan assets.

Following the implosion of FTX, cryptocurrency platform Genesis temporarily halted withdrawals in its lending operation.

Win an all-expenses-paid VIP trip to the FIFA World Cup and $30,000 in exclusive prizes with Punt Casino – the Road to Qatar awaits!
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

FTX, founded by Sam Bankman-Fried and once the third largest cryptocurrency exchange by volume, declared bankruptcy last week.

Genesis informed investors on a Wednesday call that its lending arm was unable to meet all withdrawal requests because of the unusual turbulence caused by the rapid fall of FTX.

How To Get Free Crypto  

Binance Big Boss Reaching Out For Info On Loans 

According to Genesis, “abnormal withdrawal requests” have exhausted its “current liquidity.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Reports indicate that “CZ,” the CEO of Binance, has been communicating for further information on Genesis’ balance sheet as he looks into a possible offer for the crypto platform’s loan assets.

In the third quarter report for 2022, Genesis disclosed active loans worth close to $3 billion.

Digital Currency Group (DCG), the venture capital firm that owns Genesis, Grayscale Investments, and the cryptocurrency news site CoinDesk, states that Genesis’ decision to freeze withdrawals has “no impact on the business operations of DCG” and its other wholly-owned companies.”

Binance CEO Changpeng 'CZ' Zhao. Image: Wall Street Journal

Another Major Player Also Interested 

As this developed, B2C2 – the largest market maker in the industry – has also offered to purchase loans from Genesis. B2C2’s chief and founder, Max Boonen, initially tweeted about the offer as a measure to “ease the current liquidity issues.”

Multiple crypto sector funds, service providers, and lending platforms have exposure to SBF’s beleaguered crypto exchange, and when investors withdrew their funds from exchanges and stablecoins, these entities began to experience liquidity jitters.

Coinbase Banner  

Even the largest prime brokers were affected by the drying up of liquidity, including Genesis Trading’s lending platform.

The rapid downfall of FTX has driven many individuals to lose faith in the enthusiasm around cryptocurrencies.

Based on Dow Jones Market Data, the price of Bitcoin, the largest cryptocurrency in the world, plummeted more than 7% to a low of $15,708 on the announcement of FTX’s bankruptcy filing.

Genesis Loans Should Be Peanuts For Binance & CZ

Meanwhile, in its most recent earnings report, Genesis disclosed an 80 percent reduction in active loans compared to the last three months, falling from roughly $5 billion to just $2.8 billion.

After the collapse of Three Arrows Capital – a Singapore-based cryptocurrency hedge fund – Genesis rendered around 20% of its personnel jobless, and replaced previous CEO Michael Moro with COO Derar Islim.

According to Forbes, Binance facilitated more than $9.5 trillion worth of trades last year, representing over two-thirds of all trading volume processed by centralized cryptocurrency exchanges.

FreeBitcoin Banner  

If all goes according to plan – due diligence process and background checks included – taking care of Genesis’ loans shouldn’t be a problem for CZ.

Crypto total market cap at $786 billion on the daily chart | Featured image from Money.com, Chart: TradingView.com

Go to Source
Author: Christian Encila


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.