Will Clemente, cofounder of crypto analysis firm Reflexivity Research revealed in a tweet that cryptocurrency related to Barry Silbert’s Digital Currency Group saw huge selloffs within the last 24 hours. Filecoin, Flow and Stacks are cryptocurrencies. Livepeer, Ethereum Classic and Decentraland are also cryptocurrencies. Are Genesis and Grayscale in trouble
Bitvavo Custody BV is a Dutch cryptocurrency exchange Bitvavo. It revealed in a blog that it is having difficulty accessing the EUR 280 million DCG has allocated. It stated that DCG and its affiliates are experiencing liquidity problems at the moment and has suspended repayments until further notice.

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Are DCG’s Grayscales and Genesis on the Brink to Insolvency?
Andrew Parish, ArchPublic’s co-founder, shared that Genesis creditor claims have begun to sell in small batches, “in what could possibly be called a ‘dark marketplace’. ” He shared that transactions worth $15 million were closed at 35% of the pre-withdrawal suspension value.

Adam Cochran commented on Andrew Parish’s data and suggested that it could be the beginning stages of DCG bankruptcy. Alameda and Genesis had bad loans and intertwined relationships with crypto borrower-lenders. FTX bankruptcy and Alameda bankruptcy could lead to Genesis liquidation and its parent Digital Currency Group’s (DCG), going bankrupt.
DCG’s $1.1 Billion promissory note to Genesis may cause Grayscale’s GBTC or EETH to be dismantled. Grayscale could be insolvent as a result. Coinglass data shows that GBTC trades at a discount premium of -48.79%, while EETH trades at a discount premium of -52.58%. Grayscale’s Ethereum Classic fund ETHC trades at a discount of more than -70%.
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Crypto Market Selloff
Bitcoin is currently trading at $16,729, a drop of over 4% in 24 hours. The Ethereum price fell 8% to $1,181.
DCG Associated CryptocurrenciesCryptocurrencies related to Barry Silbert’s Digital Currency Group such as Filecoin, Mask, Flow, and Ethereum Classic are down 26%, 16%, 16%, and 12%, respectively. Many experts have already deemed Genesis Capital’s lending business insolvent. The FUD has not been clarified by either Barry Silbert or DCG. Genesis has not made any statements.

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Also read: Crypto Market Tanks at 6%, Bitcoin Drops Below $17,000

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