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The dcg and breakup genesis continue to wax strong and grayscale bitcoin confidence has taken some of that heat. Most concerns have been raised about the ability of the digital currency group to be able to repay their original debt, He owes a great deal of money to the creditors. Now, co-founder of the bankruptcy crypto hedge fund 3ac su zhu joined the conversation and its predictions could have a negative gray scale impact.
Zhu's waiting for Genesis to fail.
As reported by Bitcoinist on Tuesday, 3AC co-founder and CEO Su Zhu published a Twitter thread detailing his take on the DCG drama. He explains that ftx and dcg, the original parent company, had conspired to attack luna, whose decline would ultimately lead to the collapse of its own hedge fund.
He accused the company of making the "tough issues" and that they would have continued to take investors' deposits for another six months, even if they knew they were insolvent. But the most noteworthy of the twitter feed was that it expected the genesis of crypto lender to file for bankruptcy.
Su zhu says creditors would bankrupt the company to take over the remainder of the dcg bankruptcy, which is one possibility. However, the implication of this would transcend just genesis as dcg is the mother company of grayscale, which executes the greatest bitcoin confidence in the world.
Are the shades of grey caught between two fires?
In recent weeks, there have been concerns about the health of bitcoin confidence grey-scale (gbtc) since the news of the genesis of the insolvency has become public. To date, the fund has been able to hold its own and the currency base has confirmed that it holds more than 600,000 BTC in its daycare. But the question still remains, what if Genesis goes bust?
GBTC share price at $8.29 | Source: Grayscale Bitcoin Trust on TradingView.comGenesis would be indebted to Gemini for more than 900 million dollars that belongs to the users of Gemini Earn, a program of return on the stock market. Now, users of Gemini already claim their funds and a lawsuit has been brought against the Winklevoss brothers already. So in order for Gemini to be able to recover its user funds that were given to genesis, it may need to force the crypto lender out of business.
If Genesis declares bankruptcy, it should liquidate DCG's assets, which would be owed more than $1.6 billion to the crypto lender, although DCG CEO Barry Silbert denied it. However, the liquidation of dcg assets would affect the gbtc as it would also need to liquidate its position in the Bitcoin trust. Since dcg is a major investor in the fund, it could reinforce the already broad haircut to the net asset value at which the trust is currently trading.
But this is all speculation at this stage. There is still a waiting game to see how it all plays out, but it shows that the crypto market has another interesting year in advance.
