Digital Currency Group assets turn red across the board, generating market rumours


A market decline in DCG’s portfolio assets generates industry rumours.

In the last twenty-four hours, Digital Currency Group’s portfolio assets have suffered losses, sparking market rumours.

A month has passed since shaky cryptocurrency lender Genesis Global Capital, a subsidiary of DCG, ceased redemptions.

“Both DCG and Genesis have really capable squads. In normal conditions, neither would pay 15%-30% of slippage to hastily abandon long-held positions over the weekend, thus onlookers are naturally guessing that this was a forced occurrence.

When compared to the rest of the portfolio, “it’s by far the highest traded of the previous 24 hours,” Rosenblum said. “The crossing of the -15% intraday level may have prompted greater selling because of the robustness of the FIL borrowing market. You must stake FIL in order to mine it. Frequently, miners leverage their other assets to borrow FIL.”

CEO of Onchain Capital, Ran Neuner, claimed in a tweet that DCG may be dumping as it attempts to repay a $1.5 billion debt to Genesis, or that it may be headed for bankruptcy as its liquid assets are depleted.

Bitvavo cryptocurrency exchange announced on its blog on Friday that DCG had “suspended refunds” due to liquidity issues.

Also Read: UN to Distribute USDC to Displaced Ukrainians Using Stellar Network ($XLM)

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