Grayscale Looming Bankruptcy Has Possible Adverse Outcomes

1. Grayscale owns 3.28% of Bitcoin’s total supply and 2.54% of Ethereum’s.
2. The Wall Street firm also owns tons of other altcoins.
3. Grayscale`s affiliates like DCG and Genesis are allegedly facing liquidity challenges.

In light of its specific situation and the uncertainty regarding whether or not Grayscale will liquidate its cryptocurrency trusts in order to rescue Genesis and DCG, the team at Cryptonewsland has brought to attention that the Wall Street firm owns 3.28% of Bitcoin’s total supply and 2.54% of Ethereum’s.

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In addition, the data from OkLink reveals that Grayscale holds 8.50% of the total supply of Ethereum Classic, 2.12% of Litecoins, 1.6% of Bitcoin Cash, 2.07% of ZCash, and 4.63% of Horizen, as seen in the image below. Grayscale also owns a variety of other digital assets.

On crypto Twitter, users have been debating a variety of topics, including the size of the Grayscale cryptocurrency bags, considering that its parent company, Digital Currency Group (DCG), as well as its subsidiary firm, Genesis, are having liquidity challenges. This allegedly had an effect on client redemptions at Gemini’s Earn program. Notably, Genesis owes Gemini customers an estimated $900 million.

In addition, Digital Currency Group (DCG) has financial links to a number of other organizations operating in the cryptocurrency industry. These organizations include hundreds of cryptocurrency exchanges, companies, and websites.

Following this, Coin Bureau`s Guy Turner reveals that with $15 Billion in cryptocurrencies in Grayscale’s treasury, Genesis would put the rest of the DCG group including Grayscale into bankruptcy.

Read Also :

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• Grayscale Adds Cardano to Portfolio, Now Manages $29.8B Crypto
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• Coinbase Legal: SEC Had No Reason To Deny Grayscale’s BTC ETF
• Binance Will not Invest in Crypto Lender Genesis: WSJ