Are Grayscale And Genesis Facing Insolvency? Here’s Everything You Should Know.  – Coinpedia Fintech News

Barry Silbert accomplished the impossible by creating a legitimately secure way to make billions of dollars in cryptocurrency. Despite this, his company, Digital Currency Group, is currently in financial trouble, with a key division on the verge of failure.

Silbert created a box called GBTC (Grayscale Bitcoin Trust). With GBTC, institutional and ordinary investors could own bitcoin early on without having to worry about hacking or even transferring money out of their stock market brokerage accounts. It also served as Silbert’s authorization to create money, since he charged his business, Grayscale, a 2% administration fee in exchange for managing the box. This charge totaled $615 million in 2021.

Grayscale is currently involved in a legal dispute with a hedge fund, Fir Tree, which claims that GBTC operates like a roach hotel: Bitcoin can enter, but it can never leave.

Will Clemente, the co-founder of digital asset research firm Reflexivity Research, said in a recent tweet that various cryptocurrency coins related to Barry Silbert’s DCG (Digital Currency Group) have been selling down aggressively this evening, prompting many speculators to speculate if the selling is originating from DCG itself.

Bitvavo Custody BV, a subsidiary of the Bitvavo Group, has enlisted the services of Digital Currency Group and its subsidiaries (“DCG”) to provide off-chain staking services to its clients. According to its blog, DCG is currently experiencing liquidity issues and has suspended repayments until the issue is resolved.

Genesis Global Trading, a well-known division of Digital Currency Group, is a reputable brokerage for digital currency assets. However, it recently posted a warning that it may have to declare bankruptcy due to difficulties in raising money. Genesis is unable to withdraw money from Genesis Global Capital totaling $2.8 billion.

BTC is currently consolidating around the $17,400 mark. As long as prices are trading below $18,318, the intraday bias is slightly bearish. BTC’s market value is approximately $335 billion, with a daily trading volume of $25 million.

The selling pressure is likely to intensify, and in the near future, the price of BTC may decline toward the $17,418 mark.

Trading BTC with the intention of making money from the market’s bearish pressure would be a good strategy. The cryptocurrency market appears to be rebounding from its most recent setback.