Crypto firm Genesis saw a steep decline in its loan originations and trading volumes in the third quarter of the year, following several tumultuous months for the crypto industry marked by bankruptcies and crashes at a number major companies, the firm said in a quarterly report.
“Heading into the fourth quarter, the cryptocurrency market is lacking directional momentum as participants are taking stock after a beleaguering summer of endless negative headlines,” Genesis said in its quarterly report. “Genesis remains prepared for a sustained crypto winter in light of such powerful macro headwinds.”
Loan originations at Genesis were down to $8.4 billion in the third quarter of the year, which spanned July 1-Sept. 30. That’s an 79% drop from $40.4 billion in loan originations in the previous quarter. Genesis did not respond to a request for comment.
Genesis also saw a smaller decline in trading volumes. Spot trading declined from $17.2 billion in the second quarter to $9.6 billion in the third quarter, a 44% dip.
Several Genesis executives have stepped down in recent months. Former CEO Michael Moro left the firm in August and former co-head of sales and trading Matt Ballensweig left in September. Former Chief Risk Officer Michael Patchen departed in October.