Senior Executives of Genesis gain advanced access to FTX-supported cryptocurrencies

According to reports, people familiar with the matter disclosed that senior executives of Genesis, a cryptolending institution, have the privilege to obtain cryptocurrencies supported by FTX in advance. That is, before FTT and Serum (launched in 2020 with the support of FTX and Alameda) are released to the public, SBF, the founder of FTX, sells them to Genesis senior executives at a discount price. According to people familiar with the matter, the FTT and Serum tokens, as well as Solana, have also been accepted by Genesis as collateral for Alameda’s mortgage to secure its borrowings.

Insider: Genesis executives purchased FTX supported cryptocurrencies in advance with privileges

Introduction

Reports have recently surfaced that senior executives of Genesis, a prominent cryptolending institution, have been granted exclusive access to cryptocurrencies supported by FTX even before they are released to the public. This means that the founder of FTX, SBF, is selling FTT and Serum tokens, which are set to launch in 2020, to Genesis senior executives at a discounted price. Furthermore, Genesis is now accepting FTT, Serum, and Solana as collateral for Alameda’s mortgage to secure its borrowings. This article will delve deeper into this development, its implications, and possible reasons behind this move.

The Details

According to sources familiar with the matter, senior executives of Genesis are now able to obtain cryptocurrencies supported by FTX at a discounted price before the public release of FTT and Serum tokens. This gives them a major advantage in the market and possibly raises concerns about whether it is fair for some to gain early access and an advantage over others. Moreover, the acceptance of FTT, Serum, and Solana as collateral for Alameda’s mortgage by Genesis raises eyebrows and invites speculation about the motivations behind this move.

The Implications

Granting advanced access to cryptocurrencies to a select few individuals could raise concerns over privacy and transparency in the industry. It could also lead to increased volatility, and the information gap between insiders and outsiders could further widen. The acceptance of FTT, Serum, and Solana as collateral for Alameda’s mortgage could have various implications. It could suggest that Genesis sees these projects as valuable, and that FTX has enough faith in its future value to stake it as collateral. On the other hand, it could be viewed as risky by some because these tokens have never been used as collateral before.

Possible Reasons Behind this Move

There could be various reasons behind this move. It could be a marketing tactic to create buzz around FTT and Serum’s launch, build excitement among the users, and encourage wider adoption once they are made available to the public. It could also be an attempt by FTX to build strategic partnerships that could lead to more collaborations in the future. It could also suggest that Genesis sees FTT, Serum, and Solana as strong investment opportunities and wants to act on them before they increase in value.

Conclusion

The granting of advanced access to cryptocurrencies to a select few is not an entirely new concept in the industry. However, it does raise questions about fairness and transparency in the market. The acceptance of FTT, Serum, and Solana as collateral by Genesis could be a positive sign, and it is undoubtedly a notable development within the industry. Whether it is a smart move or not in the long term remains to be seen.

FAQs

Q. Why are Genesis executives being granted exclusive access to FTX-supported cryptocurrencies?

There could be various reasons behind this move; it could be a marketing tactic to create buzz around FTT and Serum’s launch or an attempt by FTX to build strategic partnerships that could lead to more collaborations in the future.

Q. What are the implications of this move?

Granting advanced access to cryptocurrencies to a select few individuals could raise concerns over privacy and transparency in the industry. Furthermore, it could lead to increased volatility and widen the information gap between insiders and outsiders.

Q. Should we be concerned about this move?

While this move is not entirely new in the industry, it does raise questions about fairness and transparency. It could also be viewed as a smart investment move by Genesis to act on FTT, Serum, and Solana before they increase in value.