Genesis Suspending Client Withdrawals for Lending Arm Citing 'FTX Impact'

Discussion in 'Crypto Assets' started by johnarb, Nov 16, 2022.

  1. johnarb

    johnarb

    Grayscale issued a statement re: the rumors...

    No Bitcoin addresses to verify their 630K btc holdings, though

     
    #31     Nov 18, 2022
  2. Overnight

    Overnight

    Is this good or bad for BTC holders at Grayscale?
     
    #32     Nov 18, 2022
  3. johnarb

    johnarb

    There are no btc holders at Grayscale
     
    #33     Nov 18, 2022
  4. Overnight

    Overnight

    Then whose 630K BTC holdings are you speaking of? I thought you meant Grayscale had them but could not verify?

    *confused as usual*
     
    #34     Nov 18, 2022
  5. johnarb

    johnarb

    Grayscale owns GBTC fund is traded on the stock market

    GBTC owns 630K btc's supposedly but as a Bitcoiner, all I care about are bitcoin addresses that hold those bitcoins but they are not disclosed

    I'm not an expert on stock market structure of GBTC so maybe you can educate me on that
     
    #35     Nov 18, 2022
  6. Overnight

    Overnight

    I am not a stock trader so you are asking the wrong person. My goto-guy on that would be @vanzandt
     
    #36     Nov 18, 2022
    johnarb likes this.
  7. NoahA

    NoahA

    I did read a good counter argument to showing the addresses, it would reveal where all the funds came from to these addresses, and there is perhaps sensitive information there that they don't want to expose. So although I do agree that showing an address with the coins there would be helpful, there might be a good reason why they don't want to disclose this.

    Also, just knowing the address exists, doesn't really ensure that those coins will be there for when they need to be used, or that in case of any liquidation, these coins would be made available to the creditors.

    But for sure, at least seeing an address with the coins there would be a huge relief.
     
    #37     Nov 19, 2022
    RedDuke and johnarb like this.
  8. johnarb

    johnarb

    That argument was debunked, I'll paraphrase what was said based on my understanding

    First off, funds and bitcoins are not interchangeable

    Funds relate to fiat source, that we'll just assume came from investors to GBTC shares, through banks and other centralized intermediaries and as a Bitcoiner, that does not matter to us. That's fiat games

    ---------

    What the actual counter-argument was that the source of the bitcoins would reveal privacy concerns. Yes, this is true, it would reveal who the sellers of btc's were
    • OTC sales from whales who wish to remain anonymous (OG Bitcoiners)
    • Bitcoin miners
    • Exchanges
    • Government auctions of seized coins from darknet or other criminal groups
    • OTC sales by Institutions who want to cash out
    Only the first and last type of sellers may have concerns on revealing their info, but Bitcoin is a public ledger, the integrity of the whole system is about transparency, there's a whole industry built on this effort and used by government for AML and other anti-crime efforts, i.e. Chainalisys

    If the first and last type of seller did not want to reveal their identity when doing the sale, they should have fucking gone through the exchanges. OTC and private deals want to have their cake and eat it, too. Fuck 'em

    it is important that the addresses are revealed. If I was a big investor of GBTC, like Ark, I would demand that these addresses be published

    Otherwise, it could all be fake BTC's. It is the reason GBTC is trading at a massive discount to NAV real BTC holdings. No one trusts that there's real BTC's there and that GBTC is massively undervalued by over 40%

    And once the addresses are known, everyone can track in real time if any of those coins move as per the terms of the GBTC fund, they are not supposed to be sold, except for management fee

    There's no security risk to knowing the public addresses, many people are tracking the top 100 Bitcoin addresses now, and there's no risk of any of those btc's being stolen
     
    #38     Nov 19, 2022
    Collagen and NoahA like this.
  9. johnarb

    johnarb

    GBTC fund closing down and liquidating its btc holdings is a non-zero % probability

    If that was to happen as a massive sell order, it could obliterate every order book out there and bring btc price to less than $1,000

    Great opportunity

    I'll be a buyer and I have $0 debt, willing to tap on credit and fuck it, we'll probably sell our Tesla to buy more bitcoins
     
    Last edited: Nov 19, 2022
    #39     Nov 19, 2022
    NoahA likes this.
  10. upload_2022-11-19_3-57-41.png

    going down...its not finished yet :)
     
    #40     Nov 19, 2022