Shareholders of GBTC rebel against Barry Silbert

Shareholders of GBTC rebel against Barry Silbert

DCG is struggling as the Grayscale trusts face severe discounts and greater competition from ETFs. As a result, 20% of the shareholders of Grayscale Bitcoin Trust (GBTC) declared their support for voting to redeem the trust.

Investors are stuck with no way out 

David Bailey, the owner of the BTC Magazine and a founding member of UTXO Management, DCG made many enemies.

Since February 2021, the price of GBTC has decreased significantly, although the Digital Currency Group {DCG} is still charging an annual fee of 2%.

The investors have been stuck with no way out because there are no redemption options other than dissolution or conversion to an Exchange Traded Fund {ETF}, both of which the Securities and Exchanges Commission ({EC} is refusing.

However, recent developments have brought about new issues, and many public accusations have been made.

“The provenance would establish they violated SEC rule 144 Securities Act insider/affiliate laws on a vast scale. This is why Grayscale couldn’t provide addresses for BTC in GBTC.”

Zhu Su, co-founder 3AC.

Bailey agreed, pointing out that Gemini’s Cameron Winklevoss had written in an open letter to DCG’s owner Barry Silbert that “DCG and Genesis are beyond commingled.”

Another division of DCG is Genesis, which focuses on borrowing and lending. A Twitter account that belongs to Andrew Redleaf of X3 Capital states that “DCG/Genesis knew that FTX and Alameda were insolvent in late May of 2022.”

A few days before Andrew announced the insolvency, Zhu also had made some comments to demonstrate market concurrences between FTX + Genesis {SBF + Barry}, which were similar to Andrews.

GBTC increased by 12%, the most in a single day since February 2022

The biggest Bitcoin fund in the world did better than other risky investments in the past 24 hours. It’s the biggest one-day gain since February 2022; the $10.7 billion Grayscale Bitcoin Trust (GBTC) jumped to 12% to start the week.

The fund has recently outperformed Bitcoin itself, reducing the discount to its net asset value from a record high of 49% to just 44%.

Although Monday’s surge coincided with the risk-on mood in equity markets, it came after Gemini Trust Co. co-founder Cameron Winklevoss set a deadline for DCG founder Barry Silbert.

Who was to publicly commit to working together to close a $900 million hole he claims was caused by the crypto lender Genesis, also owned by DCG, stopping redemptions in November.

Cameron Winklevoss of Gemini demands the dismissal of DCG CEO Barry Silbert

Cameron Winklevoss, one of the co-founders of the cryptos Gemini, openly demanded Barry Silbert, the CEO of DCG, be fired In an open letter to the board of directors of the crypto investment company.

As the crypto and blockchain industries continue to develop and mature, Winklevoss’ action to plead for  Barry Silbert’s removal from the office shows the ongoing tensions and disputes within the companies.

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Adam Robertson

Adam is outgoing young lad who likes adventures and discovering new things. Despite his boring life, He loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.