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Will Grayscale be the next FTX?

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On November 18, Grayscale (Bitcoin) the fund has issued a statement detailing the security of its digital asset products and confirming that it will not share evidence of its reserves with clients.

“Recent events have, understandably, caused investors to look more deeply into investing in cryptocurrencies,” the statement begins. The Questionable Leadership of Sam Bankman-FriedImmediately, the question that came out of everyone’s mouth became clear. Is grayscale next?

The answer is that it is unlikely. And that’s mostly because the top people who made Grayscale seem more competent than Sam Bankman Freed.

Let’s see the facts.

It is true and perhaps undeniable that the crypto industry will plummet again if Grayscale does not fix its balance sheet. cannot be tolerated. Grayscale oversees over $10 billion in BTC, Ether (ethereum) and other assets, which represent the parent company’s largest source of revenue.

Related: It’s Time for Crypto Fans to Stop Supporting Personality Cults

Grayscale’s parent company is a digital currency group that owns trading company Genesis, mining company Foundry, cryptocurrency investment app Luno and media outlet CoinDesk. A memo was shared with DCG shareholders on May 23. Deal with all the “noise” surrounding your company. He said the company is on track to reach $800 million in revenue despite the so-called cryptocurrency winter, and that another entity is “business as usual.”

“We survived the previous crypto winter,” the CEO’s memo reads.

Silbert is an early Bitcoin evangelist and a true crypto enthusiast. But unlike Sam Bankman-Fried, he has his 28 years of experience. Before he discovered cryptocurrencies, he was an investment banker in New York and in 2015 he was CEO of stock trading platform Second Market, which he sold to Nasdaq. So this isn’t his first rodeo.

Related: From The NY Times To WaPo, The Media Is Lacking Bankman-Fried

Silbert, along with Grayscale’s own leadership, is battling alongside the U.S. Securities and Exchange Commission. After the regulator rejected an application to convert its flagship, his Grayscale Bitcoin Trust (GBTC), to Bitcoin. Exchange Traded Funds (ETFs), the first US one. The SEC did so because “investment managers failed to answer questions about market manipulation concerns” and insufficient investment protection, but if they accepted the bid, cryptocurrencies would You can also make the argument that there would have been an opportunity to “open the door to more institutional investment” and potentially avoid the current recession we are experiencing.

Grayscale subsequently filed a petition in the U.S. Court of Appeals for the District of Columbia challenging the decision, suing Watchdog for what it called the “arbitrary, capricious, and discriminatory” ruling.

In other words, for those interested in the future of cryptocurrencies and who believe in the importance of regulators acting with integrity to move the industry forward, Grayscale is doing well.

“Panic caused by others is not a sufficient reason to avoid the complex security arrangements that have kept investors’ assets safe for years,” Grayscale said in a November 18 statement. did. A record of consistent growth. This is unlikely to change anytime soon.

Daniele Selvadei Co-founder and CEO of Sellix, an e-commerce platform based in Italy.

This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.

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