There were rumors about DCG problems against the background of FTX collapse in the community
The refusal of the Grayscale Investments digital assets from the disclosure of reserves and the suspension of the Genesis Trading OTC platform of cryptoning operations caused fears in the stability of the entire group of Digital Currency Group (DCG).
Reitering this one … if dcg sonsn’t in $ 1b over the Weekend, Next Week Is Going to Be Worse THIS THIS WEEC. https: // t.CO/TMZKAN0x70
– Andrew (@Ap_Archpublic) november 18, 2022
On November 18, it became known about the unsuccessful attempts to attract Genesis Trading emergency financing of $ 1 billion by morning on November 14. The request was submitted before the suspension of cryptolending operations after the FTX collapse.
The day before, Nansen analysts discovered the involvement of Alameda Research $ 1.6 billion in September 2021 from Genesis Trading on the security of ftx utility tokens. Reducing the cost of the latter caused the insolvency of Sam Bankman-Frida.
According to the co-founder of Archpublic, Andrew Parish, the refusal of Galaxy Digital and Grayscale to support the large price-armor of Genesis Trading indicates serious problems in all crypto-ecosystems. He compared the OTC platform with large investment banks Goldman Sachs and UBS.
The expert pointed to problems with the liquidity of any crypto -startup and the complexity of DCG in general. He admitted that the next “act” would be Grayscale. And it will be “more serious than the collapse of Three Arrows Capital”.
More DCG TURNDOWNS. Nearly Eve Formerly High Flying Crypto VC is Down Bad. REALLY BAD. Liquidity Remains A Concern for Eve Entity.
** A Name to Watch That COULD EMERGE AS A DCG ‘White Knight’ – A16Z 👀
– Andrew (@Ap_Archpublic) november 19, 2022
According to him, Genesis Trading loan portfolio was refused to redeem competitors B2C2, Fortress, Jump Crypto, Galaxy and Apollo. There are no other companies that could come to the rescue of the OTC platform. As a result, creditors are preparing for its bankruptcy, Parish added.
Absolutly Zero Bids for Genesis and DCG RAise.
** Genesis Creditors are Preparing for an ‘imminent’ bankpreptcy filing.
– Andrew (@Ap_Archpublic) november 20, 2022
“Grayscale Refusal to submit a reserve report Bitcoin tendency (GBTC) – The only asset that is worth it is a serious warning for potential capital partners “, – the specialist indicated.
The related related Grayscale Investments refused to provide a report on the transparency of its reserves for “security reasons”.
The companies pointed out a “long history of constructive cooperation with regulators, the assessment of third -party auditors, storage of assets at the basis of each product created in the form of a separate legal entity in Coinbase Custody with a ban on their burden in one way or another”.
Against the backdrop of the latest events, the reduction of GBTC quotes from Grayscale Investments relative to NAV reached new records. As of November 18, the indicator amounted to 45%, Aum – $ 10.5 billion.
According to Odell, the presentation for potential investors in DCG reported that “if they are not saved, the company will take [investors] with him”.
DCG’s Pitch IS "IF YOU Do not Save We Will Take The You Down with Us."
That is not the case. There will be a lot of short term pain, a lot of people Will Get Rekt, Some Companies that Vid Not Properly Manag Will Go Under, ButCoin Will Emerge Strongger after. https: // t.CO/WM2GRKBX5E
– Odell (@odell) november 20, 2022
On November 21, Andrew Parish found out that DCG owed Genesis $ 1.1 billion for a previously unsolved bill hidden from potential investors.
“Now we know why DCG is trying to attract $ 1 billion and gets a refusal. Assets in Grayscale Investments are the only ones that attract any significant interest. If Genesis will die, then DCG will die (DCG should actually be Genesis more than $ 1.1 billion, but they have been asked not yet to disclose). Two words that I had to hear today are lies and fraud “, He explained.
Breaking: @dcgco Owes $ 1.1b to Genesis Via A Previor Undisclosed Promissory Note Has Been Hidden from Potential Investors.
** Now We Know Who Dcg IS Dowing a $ 1b Raise, and is Getting Rebuffed. @Grayscale Assets are the only Assets Receiving Any Meaningful Interest.
– Andrew (@Ap_Archpublic) november 20, 2022
According to AlphaKetchum, DCG owed $ 1.7 billion. The loan portfolio was reset. A business that previously acted as a “daily cow” [Grayscale] was faced with the risk of non -fulfillment of obligations and closing. GBTC will be sold/highlighted.
DCG
– owes ~ 1.7 Billion
– HAS A LOAN BOOK that is Nearly Worth 0,
-And Has a Cash-Cow Business that Has Maturity / Terminal Risk
– HAS A Beaten Down Venture Book
The GBTC Trust Is Going to Be Sold / Spun Off.
– AJ (F.K.a alfa) (@alphaketchum) november 20, 2022
In November 2021, DCG Barry Silbert was estimated at $ 10 billion.
The group includes the Grayscale Investments Management Company, Genesis Prime-Broker, Coindesk, absorbed in September 2020, Luno cryptocurrency exchange and Foundry mining company.
In July 2022, it became known that the Head Fund Three Arrows Capital owed Genesis Trade https://gagarin.news/news/oracle-red-bull-racing-launches-nft-collection-dedicated-to-monaco-grand-prix/ $ 2.36 billion. The last support was provided by DCG, which took on certain obligations.
In August, the head of Genesis Trading Michael Moro left the company after seven years of work, including six – as a CEO. Every fifth platform employee was reduced with him.
Earlier, Multicoin Capital predicted the speedy collapse of trading companies because of the FTX and stated that they were expected to see new statements by the industry about problems.
Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.