Digital Coin Group tokens red across board, sparking market speculation

Assets on the Digital Coin Group portfolio have taken a hit over the last 24 hours, triggering market speculation.

It has been a month since troubled crypto lender Genesis Global Capital, daughter company of DCG, suspended withdrawals on its Gemini Earn program. 

“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,” Rich Rosenblum, president of trading firm GSR, told The Block on Saturday.


Messari DCG portfolio 12:42 ET on 12/17


Filecoin in particular has seen a significant decline. 

“It’s by far the most traded of the portfolio in the last 24 hours,” 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.”

Ran Neuner, CNBC Crypto Trader show host and CEO of Onchain Capital, speculated in a tweet that DCG may be dumping as it tries to repay a $1.5 billion loan to Genesis, or it could be heading toward bankruptcy as it exhausts its liquid assets. 

Bitvavo crypto exchange wrote in a company blog on Friday that DCG is “experiencing liquidity problems” and has  “suspended repayments.”

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Source: https://www.theblock.co/post/195951/digital-coin-group-tokens-sparking-market-speculation?utm_source=rss&utm_medium=rss