{"id":9698,"date":"2023-01-11T06:54:08","date_gmt":"2023-01-11T06:54:08","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9698"},"modified":"2023-01-11T06:54:09","modified_gmt":"2023-01-11T06:54:09","slug":"dcg-crisis-likely-wont-include-a-lot-of-selling-novogratz","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9698","title":{"rendered":"DCG crisis likely won\u2019t \u2018include a lot of selling\u2019 \u2014 Novogratz"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Galaxy Digital Holdings CEO Mike Novogratz has hosed down fears over the crisis facing Digital Currency Group (DCG) and Genesis, saying while it\u2019s \u201cnot good news,\u201d it won\u2019t \u201cinclude a lot of selling.\u201d<\/p>\n<p>In a Jan. 10 interview on CNBC\u2019s Squawk Box, Novogratz said he expects the current debacle facing DCG and its related companies to \u201cplay out\u201d over the next quarter.<\/p>\n<p lang=\"en\" dir=\"ltr\">&#8220;The outlook for #crypto is not horrible but it&#8217;s not great. We&#8217;ve got regulatory headwinds we didn&#8217;t have before. People are going to cut costs and survive this transition period,&#8221; says @novogratz. &#8220;Crypto is not going away. It&#8217;s a pretty clean market right now.&#8221; pic.twitter.com\/k57ITlRFOV<\/p>\n<p>\u2014 Squawk Box (@SquawkCNBC) January 10, 2023<\/p>\n<p>\u201cThere are still some overhangs \u2014 DCG and Genesis and Gemini \u2014 that will play out in the next quarter. That\u2019s not going to be great,\u201d said Novogratz, adding: <\/p>\n<p>\u201cI don\u2019t think it will include a lot of selling, it\u2019s just not good news.\u201d<\/p>\n<p>DCG is a major crypto conglomerate known as the owner and operator of Grayscale Investments, the world\u2019s biggest digital asset manager. <\/p>\n<p>It also owns institutional lending company Genesis, advisory company Foundry, crypto exchange Luno and crypto media company CoinDesk. <\/p>\n<p><em><strong>Cast your vote now!<\/strong><\/em><\/p>\n<p>Novogratz\u2019s opinion is in stark contrast to a Jan. 4 report from Arcane Research warning investors to pay attention to the \u201congoing financial distress\u201d at DCG as the outcome \u201ccould severely impact crypto markets.\u201d<\/p>\n<p>It argued if DCG were to enter bankruptcy the company could be forced to liquidate assets and sell sizeable positions in its Grayscale Bitcoin Trust (GBTC) and other crypto-related trusts, which would put pressure on crypto prices.<\/p>\n<p lang=\"en\" dir=\"ltr\">Investors should pay attention to the ongoing financial distress related to Digital Currency Group (DCG) as the outcome could severely impact crypto markets. <\/p>\n<p>Read more:https:\/\/t.co\/5syXBpEw7q<\/p>\n<p>\u2014 Arcane Research (@ArcaneResearch) January 4, 2023<\/p>\n<p>However, Novogratz argued that both Bitcoin (BTC) and Ether (ETH) have held \u201cpretty steady\u201d despite \u201ca lot of bad news\u201d over the last few months and have even seen an uptick over the last few days. <\/p>\n<p>\u201cIt\u2019s a pretty clean market right now,\u201d said Novogratz, referring to investors who have sold or reduced leverage in recent months. <\/p>\n<p>Alarm bells first began ringing for DCG and Genesis late last year, after Genesis halted withdrawals on Nov. 16 citing \u201cunprecedented market turmoil\u201d caused by the collapse of FTX and Three Arrows Capital.<\/p>\n<p>In an open letter directed to DCG CEO Barry Silbert on Jan. 2, Gemini co-founder Cameron Winklevoss alleged that DCG-owned Genesis was yet to pay back a $900 million loan it owes to Gemini, which was due to DCG owing Genesis $1.675 billion. <\/p>\n<p>On Jan. 10, Winklevoss penned a second letter, this time toward DCG\u2019s board of directors, claiming Silbert and DCG only \u201cpretended\u201d to fill a $1.2 billion hole in the Genesis balance sheet. He said Silbert was \u201cunfit\u201d to run the company and called for his removal, effective immediately. <\/p>\n<p lang=\"en\" dir=\"ltr\">Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com\/eakuFjDZR2<\/p>\n<p>\u2014 Cameron Winklevoss (@cameron) January 10, 2023<\/p>\n<h3>Coinbase layoff was \u2018the right thing\u2019 <\/h3>\n<p>The Galaxy CEO also commented on Coinbase CEO Brian Armstrong\u2019s recent decision to cut another 20% of its workforce in a bid to further reduce operating costs. <\/p>\n<p>Last year \u201cwas a grand washout for growth stocks and for crypto, and so anything associated with it [&#8230;] that had big costs and revenue shrinking \u2014 got hammered,\u201d said Novogratz. <\/p>\n<p>\u201cI think CEOs [including] Brian at Coinbase, and any rational CEO, is doing the right thing.\u201d<\/p>\n<p>Novogratz said the outlook for crypto isn\u2019t horrible, but it\u2019s also \u201cnot great.\u201d <\/p>\n<p>\u201cWe\u2019ve got regulatory headwinds that we didn\u2019t have before. We\u2019ve got time to heal and rebuild narrative and so people are going to cut costs and survive this transition period,\u201d he said, adding:<\/p>\n<p>\u201c2023 is a year you want to survive and catch the uptick.\u201d<br \/>\n<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/it-ll-be-ok-dcg-crisis-likely-won-t-include-a-lot-of-selling-novogratz\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Galaxy Digital Holdings CEO Mike Novogratz has hosed down fears over the crisis facing Digital Currency Group (DCG) and Genesis, saying while it\u2019s \u201cnot good news,\u201d it won\u2019t \u201cinclude a lot of selling.\u201d In a Jan. 10 interview on CNBC\u2019s Squawk Box, Novogratz said he expects the current debacle facing DCG and its related companies [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-9698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9698"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9698\/revisions"}],"predecessor-version":[{"id":9700,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9698\/revisions\/9700"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9699"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}