CZ from Binance checks the acquisition of a Genesis loan book: Source

CZ from Binance checks the acquisition of a Genesis loan book: Source

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It started with CZ. It could end with CZ.

The founder of Binance, the world's largest cryptocurrency exchange, is said to be interested in acquiring the genesis credit book.

Blockworks spoke with a source familiar with the matter, which said that Changpeng "CZ" Zhao started looking for further information about the state of the balance of Genesis, since he is considering a potential offer for the loan systems of Genesis. Genesis includes active loans of $ 2.8 billion in the third quarter of 2022 Report .

Another source found that every approach would probably be rejected by the parent company of Genesis, the Digital Currency Group (DCG), and that a number would have to be circulated over $ 2 billion.

Last week Zhaos Twitter proclamations triggered the bank run, which brought FTX down, which had a huge destination on his back after it became known that his balance was ridiculous-and probably fraudulent.

and when the FTX fell, it became clear that the degree of networking in the crypto industry, which caused shock waves in May and June

At that time it was the collapse of Three Arrows Capital after the depegging of the algorithmic stable co-coin project of Terraform Labs, which wiped out the remains of last year's bull market.

This time ZHAO may have spread enough infection within the crypto industry in order to emerge as its undisputed leader.

Several funds, service providers, credit and earnings platforms in the entire crypto business were committed in FTX, and when investors withdraw their money from stock exchanges and stable coins, these companies began to feel the liquidity problems.

Since the liquidity evaporated, even the biggest Prime brokers were affected - including the credit platform from Genesis Trading. Genesis is a 100 % subsidiary of the Digital Currency Group.

Genesis suffered losses of hundreds of millions of dollars during the crypto collapse in May and reported a direct engagement of $ 175 million compared to FTX last week. Dcg Dollar equity in Genesis as an emergency solution.

if cz die has To acquire the position of Binance at the head of the crypto pyramid could be consolidated. A large rival will have been repaid by the map, and CZ could even be able to decide whether the loan programs of other competitors should be continued-including two stable coin emitters, Gemini and Circle, who directly compete with the StableCoin Binance by Paxos.