Genesis Crypto is an industry leader when it comes to digital money. They uphold strict regulations, offer loans and trade services, as well as working closely with large investors.
One part of the company had to file for bankruptcy protection; it’s the part that lends cryptocurrency. This proves how fast-paced and volatile this market can be.
How does Genesis work?
Trading digital assets on behalf of high-net-worth individuals, family offices and hedge funds; lending and custody services also provided.
Genesis recently loaned out an estimated total of around $5.2 billion worth of cryptocurrency, nearly 25% more than in its prior quarter and 40% higher than this time last year – all while hiring 22% more staff members.
However, Genesis has its share of challenges to contend with – in particular from the Securities and Exchange Commission (SEC), who have taken issue with their deal with Gemini, run by twin brothers Cameron and Tyler Winklevoss of Gemini cryptocurrency exchange. Under this arrangement called Gemini Earn, people could loan their crypto assets directly to Genesis in return for interest payments from Gemini Earn.
The SEC maintains that this was an illegal form of unregistered securities that caused many issues for many parties, such as failed hedge fund Three Arrows Capital and crypto exchange FTX. Therefore, they want Genesis to stop offering similar offers in future.
How do I open an account?
Genesis Custody allows you to store digital assets offline in a vault. This ensures that wallets aren’t constantly connected to the internet and therefore less vulnerable to hacking or breaches in security; plus you have immediate access to your assets!
Your decisions related to using Genesis Services are solely yours and require your full authority for making investment decisions. Genesis does not offer investment advice and should be seen as an aid for performing your own market analysis and research.
Your Genesis Account login credentials may have been misused without your authorization and should you suspect any suspicious, illegal, or unsafe activity or Security Breach (as defined below), notify us immediately as per Applicable Law and our internal record retention policies. We will keep a record and information regarding all activities related to your Genesis Account and Services according to Applicable Law and our internal record retention policies.
What are the fees?
Genesis provides three services, trading, lending and custody. Custody services like Genesis provide cold storage vaults where digital assets are securely kept offline in a vault until accessing with private keys from inside your account. They also feature digital asset management system features like Gemini Earn to let users gain interest on crypto held within these vaults.
Genesis is an ideal option for high-value cryptocurrency trades, as one of the few companies with a BitLicense from New York Department of Financial Services allowing it to broker various types of crypto trades for institutions and accredited investors.
Remember, cryptocurrency trading can be highly unpredictable and should only be undertaken with money that you can afford to lose. Genesis is an institutional brokerage, which only accepts accredited investors (individuals with at least an annual income of $200,000 (or $300,000 if married) or net worths over $1 Million).
How do I trade?
Trading Services: They allow investors to trade digital currency and other assets. In addition, they help clients understand the market and abide by regulations. Lastly, they collaborate with other digital money companies to improve and safeguard them further.
Genesis also lends out their cryptocurrency to individuals looking for interest payments through lending it out – this process is known as yield farming. Genesis found great success with this in 2021; they loaned out $50 billion, representing over 586% increase since last year and also traded $20.7 billion worth of derivative contracts.
However, in November 2022 a significant part of Genesis that lends out crypto had to stop allowing customers to withdraw it due to financial problems – an event which caused much uproar and anger among many users. Luckily, however, other parts of Genesis that work with digital money did not stop working; rather they continued creating products and services.