Show white paw – While thedisplayFTX area stirs and shakes the crypto community deeply, the time seems to be for transparency for exchanges and other entities. The goal? Show that we can trust and that in the event of a storm on the markets, the actor is ready to take the shock. In these various demonstrations of force, Grayscalethe crypto investment giant, showed some reluctance, accelerating the drop in its stock backed by bitcoin value (BTC): the GBTC. Explanations.
Grayscale will not provide proof of reserve
Grayscale announces on November 18 in an article on its website titled “Safety, Security and Transparency”:
” Custody of the digital assets underlying Grayscale’s digital asset products is unaffected, and the digital assets in our products remain safe and secure. »
However, unlike Binancefor example, the company explains that it will not disclose any reserve proof. In other words, she will not share information about her real portfolios and funds, as she develops on Twitter the same day in order to support the statements made in her press release:
” (…) For security reasons, we do not make such on-chain wallet information and confirmation information publicly available through cryptographic proof of reserve or other advanced cryptographic accounting procedure. (…) We know that the previous point in particular will be a disappointment for some, but the panic caused by others is not reason enough to circumvent the complex security features that have protected our investors’ assets for years. »
The giant does not leave its audience flabbergasted either. Thus, he explains that “ assets are held on Coinbase Custody Trust Company with in evidence a letter from Coinbase confirming that it holds the assets, also dated November 18.
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Grayscale and the GBTC: is the fuse lit?
It will not be a question here of making the list of the various rumors beginning to hover around this situation. However, some facts deserve our attention, despite the presence of Coinbase as guarantor of the funds and also guarantor of the morality of Grayscale.
First of all, let’s understand the links between the different forces involved. On one side we have Grayscale, a crypto investment giant. On the other, we have the Grayscale Bitcoin Trusta $6 billion fund offering stocks pegged to the value of Bitcoin.
Thereby, 1 GBTC share worth 0.00093 BTC. However, at the time of writing these few lines, 0.00093 BTC are worth approximately $15.50 while the GBTC trades around $8.30. The GBTC therefore picks up.
So why such a discount? The Grayscale’s sister company, Genesis Global Capital, by the voice of Genesis Global Trading, loaned the cash to Grayscale. The latter has suspended some of its services since the fall of FTX. In addition, all these entities belong to a parent company: Digital Currency Groupwhich also owns CoinDesk.
As we wait to find out if Genesis will succeed in raising the billion dollars necessary in order not to sink, the ecosystem frequented by Grayscale seems to be fragile. However, a major crypto player until recently, when behemoths such as Grayscale sway, the whole community remains suspended, waiting for the start of the week. Obviously, the Journal du Coin will inform you as soon as possible of the evolution of the situation.
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