Cryptocurrency Lender Genesis Global Capital Passes $1.1 Billion in 2018

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Cryptocurrency lending firm Genesis Global Capital has passed the $1.1-billion mark in lending and borrowing activity in 2018, after a bumper year for the firm.

The results come courtesy of the annual Genesis Digital Asset Lending Snapshot, which shows a doubling of loan originations in the last three months, totaling $500 million over the final quarter.

The news caps a strong year for the company, which built on loans of a further $500 million between March and October.

In its report, the firm described a “meaningful increase” in the number of clients looking to both borrow and lend in cryptocurrency through 2018.

“Over the past year, through client feedback and the rise of derivative marketplaces, we saw a meaningful increase in the number of market participants wanting to borrow and/or lend digital currencies.”

Genesis Global Capital has reported its figures against a backdrop of challenging conditions for many crypto companies. The bear market of 2018 has depressed crypto values across the board, causing difficulties for a number of startups in the crypto sector.

By contrast, Genesis has continued to grow through the year, with plans to expand further into Asia and Europe in 2019.

Genesis CEO Michael Moro said the bear market was driving growth from borrowers in crypto and fiat, with investors borrowing to drive crypto prices down.

Noting the effect of short sellers on ethereum in particular, Moro described how clients were “piggybacking” on market trends to “exacerbate” sell-offs in order to profit from declining prices.

“The short sellers tend to wait for the price of ethereum to go down before they get in, they’re not the catalyst … What they do is they piggyback … Short sellers probably exacerbate the magnitude of the sell-off … they joined the crowd, they didn’t start the crowd.

“Depending on the price action in 2019, that will dictate, at least early on in the year, what happens, and will people continue to be willing to borrow for shorting if the price is stable. Maybe, if the price is rising, probably not likely, if the price is falling, yes.”