Barry Silbert’s DCG sold assets at breakneck prices, but markets don’t care

important point

  • DCG Owns Grayscale Bitcoin Trust, Trading At Deep Discounts Following Concerns About Holding Reserves
  • DCG Launches Crypto Sale at Difficult Price Following Genesis Bankruptcy
  • The market seems to have factored this in, but there could be more twists

A few weeks ago I piece We assess what the bankruptcy filing of crypto platform Genesis means for crypto.

The reaction continues. Today, the Financial Times reported that Genesis’ parent company, Digital Currency Croup (DCG), has launched a crypto sale at a difficult price.

Of course, the problem with cryptocurrencies is that the web can be tangled, incestuous, and contagious, which is everyone’s least favorite word. This was seen in the aftermath of his LUNA crash in May 2022. At this time, the entire space enterprise collapsed because they had different parts from each other.when the same movie is played again FTX fellthe one that ultimately defeated Genesis and caused trouble in the DCG.

DCG Owns Grayscale Bitcoin Trust

Regarding DCG, the main concern in the market is Bitcoin Global Fund, Grayscale Bitcoin Trust. DCG is the fund’s parent company. This connection made the market wonder if GBTC had all the reserves (Bitcoin) backing its assets.

Despite asking for proof of reserves, Grayscale refused to provide a guarantee.

This concern, among other reasons such as difficulty in redeeming shares and fees paid, has led to significant discounts relative to the fund’s net asset value for much of the past few years.

DCG asset sale

DCG is currently selling some of its stake as it scrambles to raise funds to pay back Genesis creditors. His SoftBank-backed DCG is still headed by Barry Silbert despite calls for him to resign.

Born and raised in Maryland, USA, Silbert reached $3.2 billion in assets in April 2022 after a string of highly successful projects in the digital asset space. It’s safe to assume that the figure has gotten a little smaller.

Silbert has previously worked in investment banking and even went bankrupt, cryptocurrency’s new favorite pastime. He has worked on some of the biggest bankruptcies of recent times, including Enron and Worldcom.

“My experience in dealing with complex and problematic restructuring has been invaluable.” He told the U.S. Senate Banking Committee in 2011.

Gemini, the crypto platform founded by the Winklevoss twins, claims to owe $900 million from Genesis. Cameron Winklevoss made several serious claims in Silbert’s way, including the f-word. scam. Silbert has denied the allegations.

Upcoming Crypto Market

Bankruptcies highlight an undercurrent of concern in the cryptocurrency industry. recent pump in the crypto market.

It’s clearly macro, and the upcoming softening of expectations about how long high interest rates will last (at least compared to previous expectations) is what’s driving prices right now.

There is a reasonable argument, at least for Grayscale Bitcoin Trust, that the sale of assets by DCG could ultimately bring long-term benefits to the industry. Again, continued contagion remains a very real risk regardless of what the price thinks.

The market may think bad news is priced in. i hope that is true. However, I have learned that with cryptocurrencies, things are never what they seem. An industry shrouded in secrecy. A tweet from a CEO meant to vouch instead of an audit. The allure of transparent blockchains is often not enough.

We don’t necessarily expect more to happen in the future. But with prices soaring, it feels like the market is assuming all this has been priced in and the worst is over. But the market works that way.

post Barry Silbert’s DCG sold assets at breakneck prices, but markets don’t care first appeared coin journal. Barry Silbert’s DCG sold assets at breakneck prices, but markets don’t care

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