Head shaking because Barry's best investment decision would have been to hold Bitcoin, Ethereum and he should have avoided being involved around Ethereum Classic. This is very much similar to these other hedge funds and financial experts in the cryptospace similar to 3 Arrows Capital and Alameda Research. I really thought they were experts. I am presently becoming more skeptical on the people who run the cryptospace.
Cryptocurrency lender Genesis Global Capital is planning to file for bankruptcy as soon as this week, Bloomberg News reported on Wednesday, citing people with knowledge of the situation.
Source https://www.reuters.com/technology/crypto-firm-genesis-preparing-file-bankruptcy-bloomberg-news-2023-01-18/
Topic: [Speculated] Barry Silbert dump (Read 434 times)
The last articles on Barry Silbert were breaking news about Digital Currency Group exposed of owing $3 billion to creditors. However, the cryptospace market does not show that this news might have a negative effect on the market's present attitude.
Is the news on Barry and DCG irrelevant already or will we witness something similar to what is being shown in this chart?
Is the news on Barry and DCG irrelevant already or will we witness something similar to what is being shown in this chart?
Honestly both Barry and the Winklevoss twins can make the customers whole. Both of them have enough funds to cover the hole but they refuse and want the other to pay up. The Winklevoss had at one point like 1% of total supply of Bitcoin. They can easily cover the hole and save their brand.
However this is only going to get dragged on for years like MtGox and only the lawyers will be the winners making any money here and the Gemini Earn customers will be the sole losers.
However this is only going to get dragged on for years like MtGox and only the lawyers will be the winners making any money here and the Gemini Earn customers will be the sole losers.
Agreed, however, this is business. Gemini earn depositors' coins were held in Barry Silbert's Genesis Global to earn yield but it appears that Barry sent them to himself in Digital Currency Group as loan from Genesis. Barry should be sending those coins back to Gemini and also pay for the yield earned in Genesis.
There appears something to be happening in DCG that we do not know. I hope not something similar to FTX where there was comingling of funds and mismanagement.
It is very head shaking because Barry said this about the cryptospace hehehe.
There is a daisy chain of borrowers and lenders in the crypto space -- most well capitalized, but some are not
Lots of leverage still in the ecosystem...including in some non-obvious places
Important to understand counterparty risk and where are the weak links in the chain
Source https://mobile.twitter.com/barrysilbert/status/1408191462324441092
Digital Currency Group also closed their wealth management business.
Digital Currency Group, the cryptocurrency conglomerate whose Genesis Global Trading division just announced more layoffs, said it's shutting down a wealth-management division called HQ.
"Due the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ" as of Jan. 31, the company said in a statement Thursday.
Source https://finance.yahoo.com/news/crypto-conglomerate-dcg-closes-wealth-234455406.html
Honestly both Barry and the Winklevoss twins can make the customers whole. Both of them have enough funds to cover the hole but they refuse and want the other to pay up. The Winklevoss had at one point like 1% of total supply of Bitcoin. They can easily cover the hole and save their brand.
However this is only going to get dragged on for years like MtGox and only the lawyers will be the winners making any money here and the Gemini Earn customers will be the sole losers.
However this is only going to get dragged on for years like MtGox and only the lawyers will be the winners making any money here and the Gemini Earn customers will be the sole losers.
Did Cameron Winklevoss give money to Barry Silbert through Genesis Global as the recipient then Barry Silbert sent it to himself through Digital Currency Group as the recipient? It appears there is something to be investigated hehehehe.
Thread created by Winklevoss, open the tweet to read the letter
Earn Update: An Open Letter to
@BarrySilbert
Source https://mobile.twitter.com/cameron/status/1609913051427524608
Reply from Barry
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response
Source https://mobile.twitter.com/BarrySilbert/status/1609926715454771200
Reply from Winklevoss
There you go again. Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous.
So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note...
Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?
Source https://mobile.twitter.com/cameron/status/1609942891648126981
Thread created by Winklevoss, open the tweet to read the letter
Earn Update: An Open Letter to
@BarrySilbert
Source https://mobile.twitter.com/cameron/status/1609913051427524608
Reply from Barry
DCG did not borrow $1.675 billion from Genesis
DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023
DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response
Source https://mobile.twitter.com/BarrySilbert/status/1609926715454771200
Reply from Winklevoss
There you go again. Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous.
So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note...
Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?
Source https://mobile.twitter.com/cameron/status/1609942891648126981
a ponzi scheme where its easy to enter, with a promise of investing in an asset. but once inside that promise of getting the asset, doesnt flourish. the promise of being able to exit doesnt flourish and all you can do is con someone else into buying in for you to get out.
where due to fee's and discounts you lose if you try to exit
soo. its no longer 2017 but 2022 and the ETF has not manifested. and if not manifested by spring 2023 greyscale will only allow 20% of share holders to escape..(the 20% buy back scheme)
.. and guess who those 20% will be.. yep not the normal traders, but the favoured big institutional investors
here is the thing.
greyscale supposedly has reserves backing every share. and because the shares are 5-% discounted to reserves meaning there should be 2x coin value per share. meaning they should have 200% reserves to buy everyone out.
yet they only can afford to let 20% escape
read between the lines
where due to fee's and discounts you lose if you try to exit
soo. its no longer 2017 but 2022 and the ETF has not manifested. and if not manifested by spring 2023 greyscale will only allow 20% of share holders to escape..(the 20% buy back scheme)
.. and guess who those 20% will be.. yep not the normal traders, but the favoured big institutional investors
here is the thing.
greyscale supposedly has reserves backing every share. and because the shares are 5-% discounted to reserves meaning there should be 2x coin value per share. meaning they should have 200% reserves to buy everyone out.
yet they only can afford to let 20% escape
read between the lines
Also, yes you are correct in all of your arguments.
There's no need to be sarcastic, I'm not someone who always thinks he's right, but I guess everyone has the right to comment on any speculations, especially if they are based on rumours. As someone who is very well acquainted with what it means to invest in altcoins, I share my opinion about it, and considering your attitude towards DeFi, NTF and altcoins in general, it is clear to me that you do not like it.
Personally, I think you are shaking your head a little too much, especially about very unimportant things
I am sorry but what were those unimportant things? I am striving to be more like you. If I see someone who spelled Grayscale as Gray Scale, I would certainly make a big argument out of it hehehe.
In any case, we might not agree on many things, however, I was not being sarcastic when I said that I agreed to your reply about Barry Silbert not being more intelligent than Sam Bankrupt-Fried. But there is a difference, Sam created a ponzi scheme from the very beginning. Barry is not yet proven if he runs a ponzi scheme but the failure of Genesis Global Capital is a sign that he might be.
@YOSHIE. Where is Justin Sun? Should he not be on that list? If their losses really went to him, it would not be very shocking if he becomes the new king of the cryptospace in the next few years hehehe.
In any case, if anyone finds an update on Barry, please share them.
I saw some interesting news about @Barry Silbert dumping Bitcoin, I think Silbert has reasons for his actions, he is at the contagion point for the phenomena that are happening in the crypto market right now.From the results of speculation and Bitcoin disposal actions carried out by Silbert, can be seen below.
These Crypto Founders And Bitcoin Moguls Lost $116 Billion In 2022
Quote
To stay afloat, Silbert will likely have to raise outside capital or dismantle his DCG crypto empire, which includes some 200 investments in crypto firms and tokens, including crypto news site CoinDesk, bitcoin mining firm Foundry and Grayscale Investments, an asset management business that offers shares in a publicly traded Bitcoin trust. Forbes estimates the value of DCG’s outstanding liabilities are greater than the fair market value of its assets in the current market environment; DCG may also struggle to offload illiquid bets. For these reasons, Forbes estimates the current value of Silbert’s 40% stake in DCG to be approximately $0. Silbert’s personal investments could not be determined. A spokesperson for DCG declined to comment.
In my opinion, the debt base that has grown $40% of Silbert's shares should be sold, as I can see in the source above.
If I speculate the disposal of Bitcoin @Silbert has no impact on the crypto market, there are companies whose other investment values are greater than the assets owned by @Silbert, which are still stored.
Also, yes you are correct in all of your arguments.
There's no need to be sarcastic, I'm not someone who always thinks he's right, but I guess everyone has the right to comment on any speculations, especially if they are based on rumours. As someone who is very well acquainted with what it means to invest in altcoins, I share my opinion about it, and considering your attitude towards DeFi, NTF and altcoins in general, it is clear to me that you do not like it.
Personally, I think you are shaking your head a little too much, especially about very unimportant things
I cannot argue against what you have said is his reason because you might be right. However, it might also be the first signs that Gray Scale might be having some problems in their cashflow.
Small correction, it's not Gray Scale, but Grayscale - the exact name of the company is important to know what we're talking about, but also because nobody likes it when their name is spelled or pronounced incorrectly.
Also, yes you are correct in all of your arguments.
I cannot argue against what you have said is his reason because you might be right. However, it might also be the first signs that Gray Scale might be having some problems in their cashflow.
Small correction, it's not Gray Scale, but Grayscale - the exact name of the company is important to know what we're talking about, but also because nobody likes it when their name is spelled or pronounced incorrectly.
Furthermore, we can only guess whether someone has a problem, because realistically in a bear market, many have a problem because they invested money in something that is worth several times less today. I hope that Grayscale did not do any similar stupid things like FTX, and somehow it seems to me that it would be too much if we had another catastrophic event in the series
Also, if Barry Silbert begins another round of shitcoin purchases to form a new pool for another trust, does this imply that investing in shitcoins is worth it again?
No, that would mean that Barry is no more intelligent than Bankman or similar to him - because once you get burned, you have to be doubly careful with every future investment. However, in the land of unlimited possibilities where everything is possible, greed is the middle name of most investors.
In any case, it appears there was bigger dump than market average of different coins that are connected to Barry Silbert's Digital Currency Group. Nothing is confirmed if DCG is dumping, however.
Maybe after all the man realized that investing in shitcoins is not worth it, although it is not at all clear to me that someone who should be a serious business person and also intelligent can go in that direction at all. It's no secret that long-term investing in altcoins leads to an almost certain loss, that's something we advise all beginners on the forum.
Honestly, I don't care if he sells all altcoins, the important thing is that it has no effect on Bitcoin, which luckily is the case for now.
I cannot argue against what you have said is his reason because you might be right. However, it might also be the first signs that Gray Scale might be having some problems in their cashflow.
Also, if Barry Silbert begins another round of shitcoin purchases to form a new pool for another trust, does this imply that investing in shitcoins is worth it again?
Pretending to be some sort of Bitcoin sage, going bankrupt, then dumping your coins at the bottom of the market seems to be a popular thing to do in this space. Personally, I wonder how these individuals manage to have careers after messing up so badly in what has been, let's face it, the most simplistic trade of human history. Someone who has been in the game as long as Silbert and pretends to be good at making money should easily be able to identify the 4-year cycle and trade accordingly. That means to me that he is either a silver spoon fed baby who doesn't deserve to be where he is, or he was malicious in his actions for some as of yet to be unidentified reason.
In any case, it appears there was bigger dump than market average of different coins that are connected to Barry Silbert's Digital Currency Group. Nothing is confirmed if DCG is dumping, however.
Maybe after all the man realized that investing in shitcoins is not worth it, although it is not at all clear to me that someone who should be a serious business person and also intelligent can go in that direction at all. It's no secret that long-term investing in altcoins leads to an almost certain loss, that's something we advise all beginners on the forum.
Honestly, I don't care if he sells all altcoins, the important thing is that it has no effect on Bitcoin, which luckily is the case for now.
with many of greyscales fund offerings at 50% downrated to asset(pfft "discount")
i can see him selling off some private hoards they have to get maybe say $135m
use that $135m to buy back some shares of some altcoin trust funds
(50% rate discount buyback=unlocks $270m)
next coin
(50% rate discount buyback=unlocks $540m)
next coin
(50% rate discount buyback=unlocks $1.08b)
then use that on the GBTC to buy back the proposed 5th of shares at 50% to unlock $2.16b of bitcoin
all for the low low price of $135m initial cost
i can see him selling off some private hoards they have to get maybe say $135m
use that $135m to buy back some shares of some altcoin trust funds
(50% rate discount buyback=unlocks $270m)
next coin
(50% rate discount buyback=unlocks $540m)
next coin
(50% rate discount buyback=unlocks $1.08b)
then use that on the GBTC to buy back the proposed 5th of shares at 50% to unlock $2.16b of bitcoin
all for the low low price of $135m initial cost
The market issue, of course, started with the Bitcoin issue. If they are able to control the Bitcoin issue, then they can easily control the crypto market.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
He in the past was very active on Twitter and he gave financial advice about what coin they are buying. One coin that comes to mind is ZEC. No idea if they were already in position but ZEC had a huge rally after his tweet.
Then there was when they announced they were shorting Doge after
Or during the SNL skit. They didn’t short it directly but bought those 3x Doge short leverage contracts on FTX. And again if you followed this trade you would of also pretty much never been underwater and was very profitable.
Barry would certainly be in position already. Are you implying that he is something similar to a shill like John McAfee? Zcash is part of Barry Silbert's list of investments in Grayscale.
In any case, it appears there was bigger dump than market average of different coins that are connected to Barry Silbert's Digital Currency Group. Nothing is confirmed if DCG is dumping, however.
Over the weekend, we saw a huge sell off from the crypto markets, in particular, DCG's portfolio of coins saw a huge decline compared to others.
Source https://insights.santiment.net/read/dcg-a-sell-off-7141
The market issue, of course, started with the Bitcoin issue. If they are able to control the Bitcoin issue, then they can easily control the crypto market.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
He in the past was very active on Twitter and he gave financial advice about what coin they are buying. One coin that comes to mind is ZEC. No idea if they were already in position but ZEC had a huge rally after his tweet.
Then there was when they announced they were shorting Doge after
Or during the SNL skit. They didn’t short it directly but bought those 3x Doge short leverage contracts on FTX. And again if you followed this trade you would of also pretty much never been underwater and was very profitable.
The market issue, of course, started with the Bitcoin issue. If they are able to control the Bitcoin issue, then they can easily control the crypto market.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
The dump price changes are always based on the issue of someone who will sell Bitcoin in large quantities.
If Barry Sibert wanted to make a profit, of course he would not pass on the information that he would be selling most of Bitcoin to the public.
That means, there is something else behind what he said. Maybe we don't know the next stage yet.
If he dumped bitcoin, we can buy it on cheaper price.
If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
Just to create FUD and Panic, we can always buy Bitcoin and yes this is the good opportunity to accumulate. Dumping their Bitcoin doesn’t mean Bitcoin is not good anymore, its just the current trend and I’m pretty sure they will but back once we hit the bottom, its more on a price manipulation for me. If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
Each of us invests on BTC for the reason that we need a profit and they sell because they in need of cash right now. This shouldn't give us a negative thought thinking BTC is turning bad, now that BTC pioneers are selling it.
Much of the people in the community would call speculations or news a type of fud if it is bad news and call the bringer of the news as an antagonizer. They will choose to put their heads under the sand and refuse to accept reality.
I will tell you what is not fud. It has been 1 month already since Gemini earn has stopped withdrawals and Gemini's lending partner Genesis Global, owned by Barry Silbert, owes users more than $500 million.
In any case, instead of accusing anyone of spreading fud, read and share some news.
If he dumped bitcoin, we can buy it on cheaper price.
If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
Just to create FUD and Panic, we can always buy Bitcoin and yes this is the good opportunity to accumulate. Dumping their Bitcoin doesn’t mean Bitcoin is not good anymore, its just the current trend and I’m pretty sure they will but back once we hit the bottom, its more on a price manipulation for me. If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
Each of us invests on BTC for the reason that we need a profit and they sell because they in need of cash right now. This shouldn't give us a negative thought thinking BTC is turning bad, now that BTC pioneers are selling it.
-cut-
Updates coming in this thread.
In any case, if anyone finds an update on Barry, please share them.
Updates coming in this thread.
In any case, if anyone finds an update on Barry, please share them.
I've tried to google it but found nothing that would imply dumping bitcoin so if you want to include any of your sources with that update it would be great.
It wouldn't make any sense to me that he would be selling bitcoin of all assets, because if i recall correctly he is almost maximalist with it. Dumping anything else in this market would make more sense.
If he dumped bitcoin, we can buy it on cheaper price.
If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
Just to create FUD and Panic, we can always buy Bitcoin and yes this is the good opportunity to accumulate. Dumping their Bitcoin doesn’t mean Bitcoin is not good anymore, its just the current trend and I’m pretty sure they will but back once we hit the bottom, its more on a price manipulation for me. If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
But why sell on a Friday when liquidity is very low.
The reason is probably this:
This is how Nasdaq looked in the last 2 days before the Weekend and cryptocurrencies seemed to have reacted accordingly.
I feel like there's a lot of FUD in the media like they're trying to scare us with BNB having no backing, Binance being insolvent, Barry Silbert selling... It's all a scare tactic.
A coin dump did happen on Friday, but not just the ones you mentioned. I looked at the ZEC chart and saw long wicks from the candles there. In my opinion this could be a positive thing. That is, the coin was sold on panic and then someone bought well a few times. If there is interest in the coin, it means there will be growth in the future. As for Barry Silbert, I think this is a rumour that is often circulated now. Someone else's bitcoin sales won't have much impact on the market.
But why sell on a Friday when liquidity is very low. If there is no news by Monday or Tuesday then most likely it’s a coincidence however there is a chance that they were forced to sell some of their digital assets to make Gemini Earn customers whole again. So far no news just speculation.
Like others said before. Many coins such as Alts dumped at the same time even BNB. Maybe it was some large liquidation of someone that used BNB as collateral and got liquidated.
I haven't seen the specific news about him dumping bitcoin but the news that I've found said that they're dumping altcoins.
News: Community Fears DCG is Selling as Altcoins Values Tank Massively
News: Community Fears DCG is Selling as Altcoins Values Tank Massively
As for Barry Silbert, I think this is a rumour that is often circulated now.
Probably the market is back again that's having those rumours and FUDs that makes people panic, so the essence of the FUD is there and is giving the effect that the spreaders want.
A coin dump did happen on Friday, but not just the ones you mentioned. I looked at the ZEC chart and saw long wicks from the candles there. In my opinion this could be a positive thing. That is, the coin was sold on panic and then someone bought well a few times. If there is interest in the coin, it means there will be growth in the future. As for Barry Silbert, I think this is a rumour that is often circulated now. Someone else's bitcoin sales won't have much impact on the market.
Even if the news is correct, "some Bitcoin" does not necessarily mean that it is a larger amount that would mean something to the market. It's true that there are some "complicated connections" within DCG, but as far as I understand it, it's nowhere near what it was with FTX. It seems to me that someone is trying to cause panic because they desperately want to lower the price as low as possible.
A month ago, Silbert also published a letter from which a lot can be read, but it seems that at the end of it all, a positive opinion prevails.
A month ago, Silbert also published a letter from which a lot can be read, but it seems that at the end of it all, a positive opinion prevails.
Quote from: https://www.cnbc.com/2022/11/23/dcgs-barry-silbert-writes-letter-to-investors-after-ftx-collapse.html
Dear Shareholders,
There has been a lot of noise over the past week and I want to get in touch directly to clarify where we stand at DCG.
Most of you are aware of the situation at Genesis, but to recap up front: Genesis Global Capital, Genesis’ lending business, temporarily suspended redemptions and new loan originations last Wednesday, November 16 after market turmoil sparked unprecedented withdrawal requests. This is an issue of liquidity and duration mismatch in the Genesis loan book. Importantly, these issues have no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual. Genesis leadership and their board decided to hire financial and legal advisors and the firm is exploring all possible options amidst the fallout from the implosion of FTX.
In recent days, there has been chatter about intercompany loans between Genesis Global Capital and DCG. For those unaware, in the ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms. These loans were always structured on an arm’s length basis and priced at prevailing market interest rates. DCG currently has a liability to Genesis Global Capital of ~$575 million, which is due in May 2023. These loans were used to fund investment opportunities and to repurchase DCG stock from non-employee shareholders in secondary transactions previously highlighted in quarterly shareholder updates. And to this day, I’ve never sold a share of my DCG stock.
You may also recall there is a $1.1B promissory note that is due in June 2032. As we shared in our previous shareholder letter in August 2022, DCG stepped in and assumed certain liabilities from Genesis related to the Three Arrows Capital default. As stated in August, because these are now DCG liabilities, DCG is participating in the Three Arrows Capital liquidation proceedings on the Creditors’ Committee and is pursuing all available remedies to recover assets for the benefit of creditors. Aside from the Genesis Global Capital intercompany loans due in May 2023 and the long-term promissory note, DCG’s only debt is a $350M credit facility from a small group of lenders led by Eldridge.
Taking a step back, let me be crystal clear: DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system. We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger. DCG has only raised $25M in primary capital and we are pacing to do $800M in revenue this year.
I bought my first bitcoin a decade ago in 2012 and made the decision that I would commit to this industry for the long term. In 2013, we founded the first BTC trading firm – Genesis – and the first BTC fund, which evolved into Grayscale, now the world’s largest digital currency asset manager. Foundry runs the largest bitcoin mining pool in the world and is building tomorrow’s decentralized infrastructure. CoinDesk is the industry’s premier media, data, and events company and they have done phenomenal work covering this crypto winter. Luno is one of the most popular crypto wallets in the world and is an industry leader in the emerging markets. TradeBlock is building a seamless institutional trading platform and as the newest subsidiary, HQ is establishing a life and wealth management platform for digital asset entrepreneurs. Each of these subsidiaries are standalone businesses that are independently managed and are operating as usual. Lastly, with a portfolio of 200+ companies and funds, we’re often the first check for the industry’s best founders.
We appreciate the words of encouragement and support, along with offers to invest in DCG. We will let you know if we decide to do a financing round.
Despite the difficult industry conditions, I am as excited as ever about the potential for cryptocurrencies and blockchain technology over the coming decades and DCG is determined to remain at the forefront.
Barry
There has been a lot of noise over the past week and I want to get in touch directly to clarify where we stand at DCG.
Most of you are aware of the situation at Genesis, but to recap up front: Genesis Global Capital, Genesis’ lending business, temporarily suspended redemptions and new loan originations last Wednesday, November 16 after market turmoil sparked unprecedented withdrawal requests. This is an issue of liquidity and duration mismatch in the Genesis loan book. Importantly, these issues have no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual. Genesis leadership and their board decided to hire financial and legal advisors and the firm is exploring all possible options amidst the fallout from the implosion of FTX.
In recent days, there has been chatter about intercompany loans between Genesis Global Capital and DCG. For those unaware, in the ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms. These loans were always structured on an arm’s length basis and priced at prevailing market interest rates. DCG currently has a liability to Genesis Global Capital of ~$575 million, which is due in May 2023. These loans were used to fund investment opportunities and to repurchase DCG stock from non-employee shareholders in secondary transactions previously highlighted in quarterly shareholder updates. And to this day, I’ve never sold a share of my DCG stock.
You may also recall there is a $1.1B promissory note that is due in June 2032. As we shared in our previous shareholder letter in August 2022, DCG stepped in and assumed certain liabilities from Genesis related to the Three Arrows Capital default. As stated in August, because these are now DCG liabilities, DCG is participating in the Three Arrows Capital liquidation proceedings on the Creditors’ Committee and is pursuing all available remedies to recover assets for the benefit of creditors. Aside from the Genesis Global Capital intercompany loans due in May 2023 and the long-term promissory note, DCG’s only debt is a $350M credit facility from a small group of lenders led by Eldridge.
Taking a step back, let me be crystal clear: DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system. We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger. DCG has only raised $25M in primary capital and we are pacing to do $800M in revenue this year.
I bought my first bitcoin a decade ago in 2012 and made the decision that I would commit to this industry for the long term. In 2013, we founded the first BTC trading firm – Genesis – and the first BTC fund, which evolved into Grayscale, now the world’s largest digital currency asset manager. Foundry runs the largest bitcoin mining pool in the world and is building tomorrow’s decentralized infrastructure. CoinDesk is the industry’s premier media, data, and events company and they have done phenomenal work covering this crypto winter. Luno is one of the most popular crypto wallets in the world and is an industry leader in the emerging markets. TradeBlock is building a seamless institutional trading platform and as the newest subsidiary, HQ is establishing a life and wealth management platform for digital asset entrepreneurs. Each of these subsidiaries are standalone businesses that are independently managed and are operating as usual. Lastly, with a portfolio of 200+ companies and funds, we’re often the first check for the industry’s best founders.
We appreciate the words of encouragement and support, along with offers to invest in DCG. We will let you know if we decide to do a financing round.
Despite the difficult industry conditions, I am as excited as ever about the potential for cryptocurrencies and blockchain technology over the coming decades and DCG is determined to remain at the forefront.
Barry
If he dumped bitcoin, we can buy it on cheaper price.
If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
If he doesn't dump bitcoin, we just need to wait and see.
Whats the problem on here?
If his trust goes completely bankrupt it's probably going to create a cascade of dumps. They have 500k BTC to dump. I doubt even if they were bankrupt it would all land on exchanges but even 100k could make us go back to 10k and that would probably liquidate Michael Saylor and a few other companies and make us go even lower. I suspect this is what big players want and we'd have banks stepping in and slowly buying bitcoin to control the supply so that if bitcoin ever goes too big they had the option of crashing it back to lows for free.
Imagine if they buy 500k btc at $5k. That gives them control over that price point. If we ever go to 50k and people get extremely bullish, they'll have the option of ending it by dumping 500k bitcoin @50k on the market and making a ton of money in the process while making the price go down 50% and giving a signal dumb traders to do the same.
The market is manipulated and it's going to attract bigger and bigger manipulators as time goes by. Don't play their game, do what you feel is right.
Imagine if they buy 500k btc at $5k. That gives them control over that price point. If we ever go to 50k and people get extremely bullish, they'll have the option of ending it by dumping 500k bitcoin @50k on the market and making a ton of money in the process while making the price go down 50% and giving a signal dumb traders to do the same.
The market is manipulated and it's going to attract bigger and bigger manipulators as time goes by. Don't play their game, do what you feel is right.
The dump was to be expected when FED increased rates again. Look at stock indexes, they're all down and begun falling a day before bitcoin.
I don't always like Anthony Pompliano but he was saying the same thing for months - it's one big trade, doesn't matter if you're in stocks or crypto. FED is manipulating the prices.
I don't think that Barry alone is responsible for the whole move from 18000 to 16000 He could be involved but it's mostly crypto traders reacting to the stock market dump.
I don't always like Anthony Pompliano but he was saying the same thing for months - it's one big trade, doesn't matter if you're in stocks or crypto. FED is manipulating the prices.
I don't think that Barry alone is responsible for the whole move from 18000 to 16000 He could be involved but it's mostly crypto traders reacting to the stock market dump.
No idea if this thread was made as a joke but yesterday many of DCG coins were having a massive dump. They own large amounts of coins like FIL, ETC, ZEC and if you look at those coins you will see massive dumps especially on FIL.
It’s hard to confirm for real because everything went down during those late Friday hours but those coins in particular were hit hard.
It’s hard to confirm for real because everything went down during those late Friday hours but those coins in particular were hit hard.
Yep. We have no direct proof, but the fact that their coins are dumping significantly harder is quite telling.
Funnily enough though, the coins they're holding are total utter dogshit. I'm actually quite confident that I can pick better coins/tokens than them, and they're an actual company lmao.
No idea if this thread was made as a joke but yesterday many of DCG coins were having a massive dump. They own large amounts of coins like FIL, ETC, ZEC and if you look at those coins you will see massive dumps especially on FIL.
It’s hard to confirm for real because everything went down during those late Friday hours but those coins in particular were hit hard.
It’s hard to confirm for real because everything went down during those late Friday hours but those coins in particular were hit hard.
the trauma felt by investors from the fall of FTX has not yet disappeared and it is certain that the domino effect of that will be difficult to avoid. Silbert has been running Grayscale for a few years and he has a good reputation as a bitcoin evangelist so speculation about him dumping bitcoin is just hearsay. i will continue to follow this topic (i don't want to be left behind with the latest news about Silbert)
This is unconfirmed.
According to some accounts in social media, Barry Sibert has begun dumping some bitcoin. There is nothing yet in cryptonews media and mainstream news media, however, I have deployed my computing cluster of 1000 gameboys to collect, process, and filter all the news for everything Barry Silbert has done for the week hehehe.
Updates coming in this thread.
In any case, if anyone finds an update on Barry, please share them.
According to some accounts in social media, Barry Sibert has begun dumping some bitcoin. There is nothing yet in cryptonews media and mainstream news media, however, I have deployed my computing cluster of 1000 gameboys to collect, process, and filter all the news for everything Barry Silbert has done for the week hehehe.
Updates coming in this thread.
In any case, if anyone finds an update on Barry, please share them.
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