Home Coinbase What's up with Genesis, Grayscale, DCG and Coinbase? Joshua Henslee weighs in – CoinGeek

What's up with Genesis, Grayscale, DCG and Coinbase? Joshua Henslee weighs in – CoinGeek

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Joshua Henslee launched a video detailing the timeline of occasions shaking the digital foreign money house since FTX imploded. He covers what’s taking place with Genesis, Grayscale, Digital Forex Group (DCG), and Coinbase (NASDAQ: COIN), and what it’d imply for the longer term.

A timeline of current occasions

Henslee opens with a walkthrough of occasions as they’ve occurred in current instances.

FTX collapsed round Election Day, November 9, inflicting a ripple impact with Genesis Buying and selling, the Grayscale Belief, and Coinbase.

In consequence, Genesis Buying and selling stated it had misplaced $7 million. The next day, November 10, they stated they’d misplaced $175 million locked right into a buying and selling account on FTX. Digital Forex Group, the mum or dad firm, gave them $140 million+ {dollars} of liquidity the subsequent day.

On November 11, rumors broke that Coinbase CEO Brian Armstrong had offered 30,000 shares in his firm for $1.6 million.

Skipping ahead to November 16, Genesis introduced that it had suspended new loan originations and redemptions, citing the FTX debacle. On the identical day, Gemini Earn introduced that it couldn’t fulfill all withdrawal requests as a consequence of excessive market circumstances.

That very same day, Grayscale said that it couldn’t do proof of reserves for the 635,000 BTC it allegedly holds for “safety causes.” The following day, the Wall Road Journal reported that Digital Forex Group, which additionally owns Grayscale, was in search of a $1 billion mortgage.

On November 20, Coinbase 2028 bonds have been buying and selling at US$0.50 to the greenback. The following day, Coinbase Custody vouches for the 635,000 cash Grayscale is meant to have, saying it holds them in custody.

Nonetheless, regardless of this reassurance from Coinbase, the next day, the Grayscale Belief hits a file low cost of practically 50%.

Rumors quickly adopted that Digital Currency Group was slashing the quantity it sought as a mortgage in half to $500 million. Coinbase shares traded at an all-time low on the identical day.

Evaluation and commentary from Joshua Henslee

“I don’t see how anybody can take a look at this and suppose it’s factor,” Henslee says, starting his commentary and evaluation of the scenario.

Moreover, he says he finds it “unbelievable” that we’re within the blockchain/distributed ledger technology space, but no person is utilizing this know-how to instill shopper confidence by proving what they’re holding in varied wallets. He isn’t shopping for the “safety threat” excuse for not publishing addresses. He thinks it implies that these cash aren’t there.

“I don’t perceive why they don’t simply promote BTC to repair the low cost,” Henslee says, talking concerning the Grayscale Bitcoin Belief low cost. He additionally notes that Digital Forex Group Chairman Barry Silbert has been very quiet not too long ago, and that’s not look proper now.

What does it imply that Coinbase bonds are buying and selling at 50 cents on the greenback? Henslee factors out that there’s no motive for anybody to carry cash in Coinbase, given the dangers and the truth that even their CEO is dumping inventory as rapidly as he can.

Key takeaways from this Joshua Henslee video

  • There’s bother brewing with the large gamers within the digital foreign money trade within the wake of the FTX implosion. Names like Genesis, Gemini, and Digital Forex Group are allegedly struggling financially.
  • It’s deathly quiet, with no CEOs popping out to reassure markets. Barry Silbert has gone radio silent as rumors flow into that his agency is in search of a $500 million mortgage after being rejected for a $1 billion mortgage by everybody within the trade.
  • Coinbase CEO Brian Armstrong is dumping inventory whereas his firm seeks to reassure the market that it holds the Grayscale Bitcoin Belief cash. Its 2028 bonds are buying and selling at all-time lows.
  • Issues aren’t wanting nice for the broader trade. If an organization like Digital Forex Group imploded, it will have catastrophic penalties for all the digital foreign money house as we all know it.

Comply with CoinGeek’s Crypto Crime Cartel sequence, which delves into the stream of teams—from BitMEX to BinanceBitcoin.comBlockstreamShapeShiftCoinbaseRipple,
EthereumFTX and Tether—who’ve co-opted the digital asset revolution and turned the trade right into a minefield for naïve (and even skilled) gamers out there.

New to Bitcoin? Try CoinGeek’s Bitcoin for Beginners part, the last word useful resource information to be taught extra about Bitcoin—as initially envisioned by Satoshi Nakamoto—and blockchain.

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