As of November 5, when Binance chief Changpeng Zhao (CZ) announced that the company will divest from its FTX investment by dumping FTT tokens, the crypto market collapsed.
Indeed, bitcoin has taken a 25% dive and many altcoins fared even worse with FTX-backed Solana spiraling 65%. The question now on everyone’s mind: is more pain in store for crypto markets? The FTX fallout has come in the middle of a huge patch of bearish sentiment across all markets but crypto is also facing wide and structural market deleveraging which is making companies go bust and coins go to zero.
Gradually, every fraud and scam in crypto seems to be collapsing as the leverage synonymous with bull markets turns into the margin call of the bear market.
Bizarre things are happening in the house of Barry Silbert
The Grayscale Bitcoin Trust (GBTC) is selling bitcoin for as low as $9,000 — or a 45% discount to the currency’s spot price. Meanwhile, crypto trader and lender Genesis Global Trading (also owned by Grayscale Trust owner, Digital Currency Group) has reportedly taken out a $1 billion emergency loan in recent days. It also announced that it will be halting redemptions.
Grayscale has issued a statement saying that its activities with regard to Genesis don’t affect the various Grayscale Trusts as these assets are held at Coinbase and can’t be lent out.
Genesis, which is basically a large bitcoin and crypto trading firm, may have had assets held at FTX but this isn’t clear…
