Attention to Altcoins! Upcoming Risk. The Digital Currency Group (DCG) has come under intense scrutiny after Zhu Su, the founder of Three Arrows Capital, accused DCG and FTX of causing the collapse of Terra (LUNA) and STETH and ignoring the problem instead of solving it.
Additionally, Gemini co-founder Cameron Winklevoss wrote an open letter to DCG CEO Barry Silbert alleging that Genesis and its parent company, DCG, owed Gemini customers $900 million. DCG is known as the parent company of Grayscale, which is facing failure following the failure of FTX.
This has raised concerns that the crypto community and Grayscale may liquidate some of its trust funds to cover debts from Genesis creditors, starting with the altcoin operating trust.
Bitcoin Trust – Altcoin
According to the data, Grayscale has about 8.5% of the total market capitalization of Ethereum Classic. If Grayscale decides to destabilize ETC, there is a high possibility that the value of the currency will decrease significantly. Besides ETC, Horizen ZEN and Zcash may also suffer significant losses, with Grayscale holding 4.6% and 2.5% of their market share respectively.
However, the most worrying thing is the potential liquidation of Grayscale’s BTC trust, which holds about $10.5 billion BTC, or 3.3% of the total market capitalization. Similarly, Grayscale holds 3 million ETH, which represents 2.5% of the total market capitalization.
As the situation may worsen, crypto investors and traders hope that these breakdowns of trust will be avoided.
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