Are your funds safe? Do Crypto lending platforms continue to fall?
Genesis Capital is a large company that lends money to cryptocurrency. They stopped letting people take money out of their accounts yesterday. Investors in cryptocurrencies know that the game is over if they can no longer withdraw their money. The Bitcoin Code platform is the only authorized cryptocurrency exchange.
This is a very serious issue. By the third quarter of 2022, Genesis had loaned out $2.8 billion. During that time, it gave out new loans worth $8.4 billion. There's a lot of the money I make right there.
Who or what will fail next, a person or a business?
We are pushing the environment to its limits, and this is likely to keep happening for a long time. Gensesis is a well-known lender, so let's talk about it more. Gemini is one of their business partners, so they do this service for Gemini so Gemini can make money. People were worried because Tyler and Cameron Winklevoss, everyone's favorite twins, were in charge of Gemini.
Gemini was scary for a lot of people.
Gemini then put out a statement saying that they had stopped taking money out of their Earn program. This happened just a few hours after Genesis told everyone what was happening. Inevitable.
Just like BlockFi, the companies have decided to stop taking out money. After FTX failed, this was another desperate move by a cryptocurrency lender. People say that the company will soon leave and have to lay off workers.
The main difference between this and what Sam sells is that what is happening at these companies is very different from what is happening at FTX. Without a doubt, every company irresponsibly handles risks, doesn't have diversified portfolios, and actively invites all of this chaos.
Sam said in one of his Twitter threads, which was more like a stream of consciousness and made things worse, that "that risk was connected" to the other collateral and the platform. Then the accident happened, and at the same time, there was a rush to the bank.
As you probably already know, this should be easy to figure out, even if you aren't a rocket scientist. People know that the prices of cryptocurrencies change significantly and have a lot in common. So, you shouldn't be surprised when bad times come if you put all of your money into cryptocurrency.
These programs, including BlockFi, Gemini Earn, and others, ended up like this. You are exactly right. This is exactly what happened at Voyager Digital, Celsius, and all the other sketchy companies that promised customers money in exchange for their assets.
People now know that these places are dangerous and shouldn't be visited. They know that all the money they put in could be lost in some way that they don't know.
The FTX platform, on the other hand, was not on this list. There was business at FTX. When something other than a bank has a "run on the bank," what does that mean? Because FTX is so essential, I can't stop calling it an exchange. Customers have to put money into exchanges before taking it out or using it to buy cryptocurrency assets.
Any fees charged for trading, making deposits, or anything else should bring money into the exchange. It should refrain from sending deposits to its sister trading business and then use the money from those deposits to gamble like a bank.
Customers of BlockFi and the rest of the gang might have known what was going on, but they didn't know what was going on with FTX.
Everyone knows that the best thing to do to stop a bank run is to stay calm.
Does it make sense to put all you have at risk for a return of 4%, 5%, or 10% of what you already have? From here on out, things can only get better. The bear market is still going strong, and investors in cryptocurrencies are pulling their money out of the market at a rate that has never been seen before.