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Barry Silbert

3AC’s Zhu Su Blames FTX & DCG For Terra’s Fiasco

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Zhu Su, CEO of the defunct hedge fund Three Arrow Capital or 3AC, has taken to Twitter to pin blame on venture capital firm Digital Currency Group [DCG] and FTX for Terra’s fallout.

In the series of tweets, the co-founder of the Singapore-based firm alleged that DCG and FTX hatched an elaborate plan to attack Terra’s native token LUNA, and Lido’s stETH.

It is worthwhile to mention that Three Arrows was the first major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD in May. It filed for bankruptcy in the British Virgin Islands in late June 2022.

According to Zhu Su, DCG and FTX suffered severe losses during that time. With the collapse of Babel and other crypto firms involved in Grayscale’s GBTC, the losses went beyond 3AC.

For those new, DCG is the parent firm of Grayscale Investments and Genesis Trading. FTX’s recent crash triggered a major liquidity crisis for DCG’s crypto lending subsidiary Genesis Global.

According to the CEO, DCG could have supported the hapless firms in the restructuring process but instead chose to “fabricate a left pocket right pocket callable promissory note that magically filled the hole.”

“This is like a kid losing at poker and saying “I am fine, my dad will pay you, let me keep playing”, he tweeted.

“DCG’s Value Is Criminal Fraud”- 3AC Founder

Zhu Su also alleged that DCG and FTX had been attacking them for months and had taken advantage of 3AC’s fall to “misdirect” the crypto community.

They, like FTX, proceeded to misdirect for months, using various methods to attack us and also not have anyone ask the hard questions which is how did genesis fill the hole. they, like FTX, spent six months taking more deposits while insolvent and hoping mkt goes up.

The 3AC founder then likened DCG’s efforts to criminal fraud and criticized its CEO, Barry Silbert, for approving SBF his FTT-backed loan.

Further, the founder predicted that Genesis would likely be the next to file bankruptcy in the near future. “…they are likely demanding Barry pays back his cashouts the easy way instead of waiting for a DoJ criminal case with restitution punishments,” he stated.

“The damage from yield generator fund blow-ups could have been contained by client-facing firms doing proper restructurings that, while painful for equity holders, would’ve ensured continuity Instead, FTX and DCG committed umpteen frauds to risk client funds rather than dilute”, the 3AC founder concluded.

Dogecoin fails to impress grayscale’s Barry Silbert; DOGE creator hits back

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What an impressive run it has been for the Shiba-Inu featured meme token- Dogecoin [DOGE]. A lot of its exposure has to do with the “Musk effect“. The Tesla Chief’s guest-hosting appearance on this week’s Saturday Night Live had further caused a stir in the cryptocurrency market.

The recent exchange listings on eToro as well as Gemini have backed the dog-themed cryptocurrency to sustain its rally and helped it to surpass XRP as the fourth-largest cryptocurrency by market cap. But unlike previous instances, when Elon Musk managed to sway the general investor crowd into FOMOing DOGE, this time it has been the opposite.

The memecoin took a plunge by more than 30%, as the exec made an appearance in the late-night comedy show, which drove its price to $0.498, at the time of writing. It appears plugging Dogecoin on SNL did not work out. So much for mainstream exposure.

Dogecoin [DOGE] Price Chart:

Musk toying with the cryptocurrency market has left many well-known players in the industry fuming. The US regulators have applied more cautiousness but lacked significantly when it came to providing regulatory clarity because of its lack of political decisiveness surrounding this space.

Hence, many crypto advocates have not been shy in calling the tech giant for Dogecoin’s recent boom and a potential subsequent bust that could rock the market and not in a good way.

The latest one to chime in was Barry Silbert, who happens to be the Founder and CEO of Digital Currency Group [DCG], owner of Grayscale Investments. He urged cryptocurrency investors to convert their Dogecoin to Bitcoin in a recent tweet.

“Okay $DOGE peeps, it’s been fun. Welcome to crypto! But the time has come for you to convert your DOGE to BTC.”

Silbert also revealed that his firm has gone short on DOGE via FTX cryptocurrency platform. The exec further pledged to donate $1 million to a charitable cause selected by the Dogecoin community if DOGE hits $1 by the end of this month.

But the co-creator of Dogecoin, Billy Markus was quick to point out Silbert’s association with a prominent crypto news portal and stated,

Crypto IPO: A $4 billion IPO can meet Barry Silbert’s DCG future

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When we talk of public-tradable companies in the digital asset industry, very few organizations will come to mind. These organizations are small businesses, and none of the multi-billion dollar corporations has taken a step into the Crypto IPO.

Over the past few years, there have been talks about Coinbase and BlockFi taking the big step forward but nothing constructive has manifested from either side till now. Now, According to Messari, a third party might also soon throw their hat into the Crypto IPO mix, which happens to be Barry Silbert’s Digital Currency Group.

Digital Currency Group or DCG is a venture capital company that has several established crypto businesses under its administration. The organization has been around for over 5 years, and it has developed corporations such as Genesis Global Trading and Grayscale Investments. Additionally, DCG also controlled CoinDesk and Internation retail exchange, Luno, under its wing.

While discussions over a Crypto IPO have not been raised publicly for DCG’s end, the report crunched down some numbers, which indicated that DCG would present a strong case for a successful IPO.

Barry Silbert and his numbers game with Genesis, Grayscale

According to the report, Genesis recently revealed its quarterly report for Q3 2020. Genesis Global Trading, an OTC crypto trading desk, and crypto lending/borrowing platform, registered loans which surpassed $5 billion on the quarter. The total active loans were estimated to be $2.1 billion which would bring is $42 million annual revenue at the moment.

Additionally, on the trading aside, Genesis registered over $1 billion in derivatives trading and $4.5 billion in spot volumes, where estimated trading revenue is expected to be around $8.8 million.

These are extremely impressive numbers and with respect to Grayscale, the crypto industry already had an idea. Grayscale’s flagship product, GBTC has continued to aggressively accumulate BTC in 2020, currently occupying close to 2% of total circulation. Grayscale was bringing in close to $159 million in revenue per year. The report added,

“With Genesis and Grayscale generating an estimated $50M and $123M a year, that still leaves Coindesk and Luno. On top of that, DCG also has a sizeable investment arm, consisting of both liquid and VC investments that would bring their total valuation to around $4.3 billion.”

DCG’s added advantage for its Crypto IPO

The $4.3 billion valuation of DCG is impressive. It is impressive enough to take the IPO step but Barry Silbert’s organization had an added advantage. One of the key fundamentals before going public is to attain a list of clients that come from an institutional background and high net worth individuals. A retail heavy clientele does not attract that right kind of people to undertake the proceeding of an IPO. For Genesis and Grayscale, it has been their major source of revenue. Genesis trading strictly caters to the demands of institutional investors and in 2019, it facilitated the crypto-fiat lending system due to immense institutional demand.

Grayscale’s stance in the public eye is already clear as day, with the investment wing catering to institutions trying to attain exposure to digital assets. Hence, with Digital Currency Group, a Crypto IPO can be manifested in a matter of months, if Barry Silbert decides to take the company public.

Grayscale’s Barry Silbert Thinks US Will Be The Next BTC Mining Hotspot After China

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China has been a driving force in cryptocurrency adoption, at least in the Asian sector. Several major players were looking at the Red Dragon as the marker for development in the decentralized assets space.

New comments from proponents of the space have now shown that there was a swing occurring where people preferred to conduct mining operations outside China.

Grayscale Investments boss Barry Silbert recently took to the airwaves to inform investors that there was a growing demand of interest from areas outside China. Currently, China dominates digital coin mining and that figure is yet to be challenged.

Grayscale Investments is the world’s biggest cryptocurrency asset manager and its Silbert has made news multiple times while praising Bitcoin.

Silbert is also responsible for the popular ‘DropGold’ campaign that aimed to show that Bitcoin was much better than traditional gold as a form of long term investment.

The Grayscale CEO did not mention the main reasons why there was a shift from China, leaving many to guess. He claimed that over the past three to six months, there was a growing shift in moving mining activities to the US or Canada.

There has been significant competition among countries to establish dominance in the cryptocurrency space. Powerhouses such as Japan have also kept a watchful eye on China and have openly stated that the Xi Jinping led the country was a threat.

Miners in China control sixty-six percent of all Bitcoin mining, which puts the ball squarely in their court. Silbert’s comments are expected to render some hope to investors who believe that the west needs to up its game.

Even though China has the lion’s share when it comes to mining, the country still does not allow digital assets to flourish in its full glory. The laws in the country still state that cryptocurrencies were not fully accepted.

Instead of cryptocurrencies, blockchain technology was considered the real superstar as several companies have begun using it. Officials in China, including the President, had revealed that using blockchain technology was the way to go for the future.

Although Silbert’s comments were positive for the US mainland, miners need to ensure that all the guidelines are met. Reports have shown that there have been several scams in the space and the advent of growth in the mining sector will only elevate that.