Digital Currency Group or DCG having the market speculation effect on its assets as its portfolio assets are red across board.
DCG Portfolio
The assets on the DCG portfolio took a hit yesterday, triggering market speculation. It has been a month since troubled crypto lender Genesis Global Capital, daughter company of DCG, suspended redemptions.
Have a look, what does the crypto heads say on DCG:
Rich Rosenblum
According to The Block report, Rich Rosenblum, President of trading firm GSR, said that “DCG and Genesis have highly competent teams. In normal circumstances neither would pay 15%-30% of slippage to rapidly exit long-held positions over the weekend, so observers are naturally speculating this was a forced event of some kind.”
“It’s by far the most traded of the portfolio in the last 24 hours,” Mr. Rosenblum said. “It could be due to there being a highly developed borrowing market for FIL, which resulted in more selling once a -15% intraday threshold was breached. You need to stake FIL to mine it. Miners often borrow FIL by leveraging their other holdings.”
រ៉ានណឺណឺរ
CNBC Crypto Trader and CEO of Onchain Capital, Ran Neuner, speculated in a tweet. He noted “There is speculation that DCG is dumping assets based on below. It could mean two things: 1. They are trying to repay the $1,5bn loan to Genesis. The loan may be recalled in case of a bankruptcy. 2. They are entering chapter 11. To do so they must first exhaust all liquid assets.”
He also wrote in his recent tweet that “he has never seen an industry with as much opportunity as គ្រីប! "
Miles Deutscher
The Crypto Analyst, also mentioned in his tweet as “DCG related assets are being sold off aggressively. Strong likelihood they’re dumping.”
នឹង Clemente
The Co-Founder of ReflexivityRes, also wrote in a tweet about the aggressive sell off of DCG tokens, “leaving many speculators to wonder whether the selling is derived from DCG itself.”
ម៉ៃឃលវ៉ាន់ដឺប៉ុប
The Crypto Strategist and CEO & Founder of Eight Global, a trading platform, noted that “Honestly, these drops on the markets now feel like DCG is getting liquidated or is liquidating assets.”
Source: https://www.thecoinrepublic.com/2022/12/18/dcg-tokens-sparking-red-amid-market-speculation/