Since the beginning of the year, the parent company of Grayscale and Genesis, DCG, has come under fire from critics. Its CEO, Barry Silbert, has in a long reflection on Twitter, tried to calm tensions. However, it turns out that his intervention has only reignited the ire of the cryptocurrency.
DCG Scandal: Context Reminder
Collapse of DCG (Digital Currency Group): Here is another case that could have very big implications for the cryptocurrency universe. To put that into perspective, the company led by Barry Silbert is the holder of the largest crypto investment fund in the world, Grayscale. She also owns the Genesis exchange and has numerous positions in more than a dozen companies in the cryptocurrency industry.
The FUD (expression widely used in the sector to designate a climate of fear and anxiety) around DCG, which began in November after FTX filed for bankruptcy, when one of its companies, Genesis, announced it was suspending its lending services. The problem with the action taken by the exchange is that it affected the clients of another industry giant, Gemini. Indeed, the platform co-founded by the Winklevoss brothers has run into difficulties with its lending arm, Gemini Earn.
The source of the problem comes from the fact that Genesis blocked the funds from Gemini Earn. According to data provided by Cameron Winklevoss, Genesis Lending owes over $900 million to customers. And apparently, according to what he wrote in a public letter addressed to Barry Silbert, he would have been collaborating for more than a month with the CEO of DCG to recover the funds, but the latter only wants to use delaying tactics.
“Every time we ask you for a tangible commitment, you hide behind lawyers, investment bankers and lawsuits. After six weeks, your behavior is not only completely unacceptable, it’s unreasonable. »
Find out much more about the DCG vs. Gemini Litigation in this article:🤼♂️Cameron Winklevoss Confronts Barry Silbert About Gemini Earn Funds
Barry Silbert: the firefighter who starts the fire
Yesterday in a long Twitter thread, Barry Silbert wanted take stock of the situation. However, in reality, it started with an announcement that is supposed to be an insight into DCG’s issues the lap of a glory for the company.
“I am incredibly proud of the role DCG and I have played as pioneers and builders over the past decade. We have invested in over 200 companies that have grown and shaped the industry, helped create the first publicly traded BTC fund, the largest asset manager in the industry…”
Still, Silbert acknowledges that his company hasn’t been completely immune to the effects of the bear market. He even promises that DCG will always be at the forefront of industry progress.
“DCG is committed to staying at the forefront as we strive to build a better financial system. As this new year unfolds, we’re entrenching ourselves in our “lean and mean” mindset and making significant changes to position the company for long-term success. »
However, the cryptosphere didn’t take the release very well. In fact, many felt that Silbert hadn’t addressed the real concern, viz his dispute with Cameron Winklevoss.
As for some other members of the crypto universe, such as Twitter user Arie Jones, Silbert’s words sound like Do Kwon’s during the ecosystem collapse 💥Terra Luna.
Moral of the story: when you have nothing to say, 🤐let’s shut up! Silence is better than a failed speech.
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