This week, all eyes are on Grayscale and the Digital Currency Group (DCG). In a worst-case scenario, the world’s largest crypto fund provider could liquidate some of its altcoin trusts.
A possible liquidation of the Grayscale altcoin trust could affect the prices of the already battered crypto asset. DCG is the parent company of Grayscale and has been heavily involved in the FTX collapse transition.
Cameron Winklevoss, co-founder of Gemini, on January 2. lashed out at the CEO of DCG Barry Silbert on frozen funds. The twin exchanges lent user funds to Silbert’s troubled Genesis brokerage. Genesis halted withdrawals following a lack of liquidity following the FTX implosion.
Fears have now emerged that Grayscale may have to liquidate some of its trust funds to cover originating creditors, The firm may start with underperforming altcoin trusts.
Altcoin Trust Is Under Pressure
In addition to its flagship BTC Trust Fund (GBTC), Grayscale also offers several altcoin funds. Not included EthereumIt has single asset funds for the following altcoins: basic attention token (bat), bitcoin cash (BCH), chain link ,Contact, decenterland ,Mind, ethereum classic (Etcetera), Litecoin ,LTC, solana ,Fifth note of musical scale, stellar lumen (xlm), and zcash (ZEC).
Analysts have listed the altcoins that will be affected the most. These are listed in order of Grayscale holdings as a percentage of the coin’s market capitalization.
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