beincrypto.com
The crypto market has seen a massive selloff in the past 24hours. Several assets linked to Digital Currency Group (DCG) grayscale investment products, such as NEAR, Filecoin, Ethereum Classic, etc., fell more than 10% on average, fueling fears of a sale of the company.
According to Coingecko, the crypto market fell 5.% from a reported $838 billion. Data from Coinglass showed that $237.86 million was realized by the industry. Bitcoin fell 4.3 percent to $16,710, while Ethereum lost 7.6 percent and was trading at $1,180 at press time.
Altcoin Value Drops
Over the past 24 hours, several DCG-related assets such as Filecoin, Near, Ethereum Classic, Litecoin, Bitcoin Cash, etc. have lost everything. Binance-backed coins like BNB, Trust Wallet Token, etc. also saw a lot of red candles. Other altcoins such as Algorand, Cardano, Chainlink, Avalanche and Solana saw their values drop rapidly during the sale.
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Although it was not clear why assets suddenly sold off during this period, the crypto market has just experienced one of its most turbulent weeks in recent years.
FTX founder Sam Bankman-Fried was arrested in the Bahamas at the request of the US government. SBF was later denied bail as he was considered a flight risk.
The largest crypto exchange in the space, Binance, also experienced a sharp increase in withdrawals as fears grew about its reserves. BeinCrypto reports that the exchange raised about $5 billion at the peak of the run.
Crypto Community Speculates DCG Sale
Meanwhile, several crypto analysts have speculated that the current sell-off may be due to Grayscale's parent company, Digital Currency Group (DCG).
Will Clemente, founder of Reflexivity Research, tweeted that many speculators wonder if DCG itself was the reason for the sale. He added images of some of these high coin price figures to reinforce his position.
cryptanalyst Miles Deutscher thought that a DCG dump was very likely. According to him, "bad news will probably come".
Karl, another analyst, said he "wouldn't be surprised if this sale is a desperate attempt to liquidate whatever else they can get before filing for bankruptcy soon."
The Community's concern about the DCG's finances has increased due to recent events in space. Genesis, the company behind this cryptocurrency, recently suspended customer withdrawals following the FTX crash.
At the same time, the investment firm also disclosed that it has $2 billion in debt, most of which is owed to Genesis. Adding to the fears, shares of Grayscale Bitcoin Trust (GBTC) traded flat.
Source : beincrypto
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