💀 Long live Crypto lending. Genesis is dead!

Hello Nutty Family, we are at the end of the week and have got some fire news for you! Let us go over today's headlines.

• Long live Crypto lending. Genesis is dead! 💀

• Guess who wants to make a comeback? 👀

• Some other NEWS in a Nutshell🥜

• Nutty Meme🥜

An era came to an endKing of Crypto lending is deadSomeone is trying to revive itselfHope everything makes sense

Long live Crypto lending. Genesis is dead! 💀

Genesis, one of the biggest crypto lending platforms in the world, recently filed for bankruptcy. 🏦

Before we dive further, let us first understand who was Genesis 👇

Genesis was one of the biggest banks in crypto. Like any other bank, it accepted deposits and gave out loans. By doing this, they earned some arbitrage interest and passed on the remaining profit to the depositor. ♾️

Guess who did companies including CEX, Gemini etc. that offered yields for depositing crypto outsourced this task to?

Yes, Genesis. 🫡

Thus, Genesis was like the central bank of crypto. Everyone borrowed from it and deposited money in it! It was supposed to be one of the lenders of last resort. 🏦 🤝

This is what a snapshot of its Q3 2022 report looked like, 👀

Notice the capital B’s at the end? It definitely does not spell "bullsh*t." 💩

It tried raising an emergency fund of $1 billion last year. However, the investors responded something like this: 👎

Coming back to the details of the news 📰

• Gemini has a debt of around $3.6 billion. 💰

• It owes Gemini nearly $765 million (nearly 20% of total debt). 😯

• Genesis reportedly has only $150 million available in its bank account. 😢

• This news has been anticipated since November, when they shut down withdrawals. So it would not really impact the market. 😶

After so many setbacks, the market is hardly surprised at this point anyway. 🥹

According to Genesis, it was heavily impacted by the falls of 3AC and FTX, rendering it vulnerable to market conditions. 🧐

With the former king of crypto lending, Genesis, dead. We will see who takes the spot in the future. 👑

Guess who wants to make a comeback? 👀

The 3 magical letters you dread the most: FTX 💀

FTX’s new CEO, John Jay Ray III, announced that he is considering reviving FTX. 📈

Who is John Jay Ray III? 🤔

According to Wikipedia, he is a person who specialises in "recovering funds from failed corporations." 🧂

He has experience chairing several bankruptcies and trying to recover millions of dollars in assets for multiple corporations over several years. For further credibility, he chaired the bankruptcy committee for Enron, one of the biggest scandals in American history. 🤫

Guess who was the happiest over this news? 😂

Another set of 3 magical letters, SBF 🫡

Let us understand what does FTX have under the hood,

FTX has $5.5 billion in liquid assets and $4.6 billion in illiquid 300 investments. 💸

A breakdown of the liquid assets:

• $1.7 billion in cash 💰

• $3.5 billion in liquid cryptocurrency and FTT (shit) tokens 💲

• $0.3 billion of liquid securities 💵

However, it is worth noting that,

• The figures include a lot of holdings in FTT and SOL. 🥹

• A lot of money is stashed away in multiple exchanges. (solvent and insolvent) 🧐

• The $4.6 billion investment is the "book value" on FTX’s balance sheet. So the net value can differ a lot. 😏

But why does John want to revive the exchange? 🤔

According to him, he and his team of experts are evaluating whether,

• They should sell the assets and compensate creditors for a percentage of their assets 🌜

• Play a longer game by reviving the exchange and refunding creditors in full. 🌕

Fun Fact: FTT token jumped 34% after this news. These degens (a.k.a people with 0 sense of risk management.) are truly something. 🫡

Nutty Take 🥜

If FTX relaunches, it is highly probable that it will be rebranded under a different name. 🫥

It is because people across the world, irrespective of whether they know about crypto or not, certainly know about FTX. 👂

(I asked a couple of my non-crypto friends that I am excited about web3. They replied, "Is'nt it something that 3-letter thing that exploded).

Therefore, FTX right now has a terrible brand name, which can be almost impossible to reverse. 🫡

We sincerely hope that whether it is revived or not, all of its creditors receive the maximum amount possible. 👍

Some other NEWS in a Nutshell🥜

• OKX releases proof of reserves, claiming it has nearly $7.2 Billion of "clean asses".

• Metahood raises $3 million to build the Zillow of metaverse.

• Busan launches digital assets exchange.

Nutty Meme🥜

That is it for this week fam! Cya next week!