YouSaid · the spoken record

Roshun Patel

lines on the record: 61
first: 2021-05-31
most recent: 2021-05-31
sittings or episodes: 1
sources: podcast

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“underlying and i think really just what happened last week was similar to what you've seen before where the you know the futures market and the swaps market was was pretty levered up people were very very long especially in the altcoins thinking that like look bitcoin has kind of found a floor here the next sort of thematic narrative shift that we'll see is a rotation into alts and as long as bitcoin doesn't fall through the floor the alts will kind of rally so a lot of the positioning was skewed down the risk curve in more volatile assets and pretty much the exact opposite happened which was spot bitcoin started selling off in a significant way and when that happens there's such a scramble for collateral in the market as well as like kind of getting assets back to things that you know aren't really going to fall like 70 or 80 percent but you know things that are going to fall maybe like 20 or 30 percent like bitcoin so there's a rotation back into bitcoin and you know”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“The crypto market over the years, you've seen some pretty wicked crashes to the downside, similar to last week, although I will say last week was probably the most brutal I've ever seen in the last five years. And even crazier than March, I would say for a couple reasons. But you could point to a specific headline or a specific narrative or a specific theme that could be the cause of it. But it's really hard to say if that was the ultimate reason why the market sold off. At the end of the day, the crypto market is really just a spot order book and a derivatives order book. The derivatives order book is very levered. And, you know, there's a lot of people that take positions out on futures and swaps that want to get upside but have like tight liquidation levels to the downside. And that market has liquidity until it doesn't. And then it could get a little hairy on the downside. And then the spot market is the same thing. And the spot market is consistent of people that are buying and trading.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“I think, broadly speaking, the stablecoin market, a huge aspect of it is sort of efficient settlement and timing on moving assets from point A to point B. Whether that's for exchanges or even just more like settling OTC trades and dealing with desks, I think it's all relevant. A good example to point to is really the most innovative and forward-thinking banks, I think out there Kind of building these 24 7 settlement networks, some of which are really mirrored on kind of Ethereum itself and kind of like private Ethereum networks. So yeah, stablecoins are really just, there's frankly just easier to use than wires, simply put.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“kinds of things as well as USD. So we do lend cash against crypto and a lot of the firms that do borrow that cash are probably clients of prime brokers at banks as well.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, definitely. So, you know, we started our core business really by lending out crypto, particularly Bitcoin for cash collateral in terms of the lending side of things. And that trade was more or that real service was more suited towards crypto trading firms that had a reason for borrowing Bitcoin in the first place. Now, kind of in, I would say like around November of 2018, stablecoins started becoming a much more popular and real thing. And since we were more crypto native and focused, we were thinking like, you know, why don't we consider lending out stablecoins against Bitcoin as collateral, kind of doing the inverse of what we were doing prior. And that business has ballooned quite a bit where now about, you know, it's about 50% of our active loan book is actually stablecoins right now. So cash equivalents, like Tether, dollar, circle, dollar, Paxos.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Both are pretty relevant in terms of the inflow that we see, just kind of given the services that we provide, our clients are more focused on the trading ARB and extracting yield and sort of value out of the market side of things. So I would say it's a little bit skewed towards that side.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, that's really evolved, I would say, over time. If you ask me a 2018, it was pretty much the vast majority of our clients for extremely crypto focused and crypto native. And to this day, I would say a good portion of them still are as of late. It's evolved a bit where we do have more clients that are not necessarily crypto as their main thing, but it's sort of an adjunct thing that they've added recently. I would say our cloud base now is probably like if I had to put like percentages on it, like 70 or 80% crypto focused, let's say, and the rest like more diverse and has like primary businesses outside of crypto.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Notional aim so that we have like a good asset base and a good client base and as well as investor base to kind of lean on to help build our business into”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Second market, what was interesting about that is connecting two sort of different markets, which was like you had early investors in tech companies as well as employees that wanted to get some liquidity on their holdings or shares or options. And then you also, and those guys tended to be on the sort of West Coast. And then you also had more investor focused hedge fund types on the East Coast New York base that wanted to kind of get it on that and weren't necessarily physically or financially close to Silicon Valley that kind of marrying of two different markets, I think it sort of ties into kind of Bitcoin and crypto trading generally just because the people on the West Coast there that were early on tech tended to be the ones that were also early in the crypto space and it led Genesis and ultimately our parent company Digital Currency Group to establish a lot of these good relationships with early holders which are now you know kind of larger clients”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“And effectively, that desk became Genesis and kept the broker-dealer license still based out of New York here. And we've kind of grown a lot since then what started as just a spot OTC trading desk, added lending in 2018, which is kind of when I joined, and derivatives in 2020. So we've added a slew of services and Genesis now facilitates billions of dollars of trades every used to be every month. Now it's like every week, which is kind of crazy to think. We have a pretty large lending book. When I joined in 2018, we had $100 million in active loans outstanding. Now that's kind of grown to $9 billion in active loans outstanding as of now. I think prices are rallied a little bit. So maybe it's a little bit more.”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source
“Genesis, broadly speaking, is kind of basically a sell side desk in the crypto ecosystem similar to kind of a bank prime brokerage desk. We facilitate the ability for clients of ours to trade as well as lend to us, borrow from us, get yield on their holdings. And then recently as of last year, trade derivatives with us bilaterally over the counter. So we kind of offer the whole gamut of financial services in crypto markets. Genesis has its roots kind of They go back to really the kind of mid-2000s to a company called Second Market without getting too much into the details there that company basically facilitated buying and selling illiquid company stock really like Facebook Twitter LinkedIn like those kinds of things in the mid 2000s between buyers and sellers when those companies weren't really public eventually that was sold to NASDAQ and one of the desks there started trading Bitcoin in like 2011 2011”
2021-05-31 · Odd Lots · Roshun Patel on What Really Happened During the Crypto Market Crash · IDENTIFIED FROM THE TRANSCRIPT · source