coinculture.com
Coinbase Custody confirmed a product breakdown issued by Grayscale over the weekend in response to user inquiries on the company’s digital asset offerings.
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While the company offered a product breakdown, wallet addresses were suppressed due to security concerns. The company reassured users that their assets are secure and that Coinbase conducts regular on-chain checks to protect the underlying cryptocurrencies of each product.
6) Coinbase frequently performs on-chain validation. Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.
— Grayscale (@Grayscale) November 18, 2022
Multiple centralised firms, like FTX, Terra, and Three Arrows Capital, have burnt billions from crypto portfolios, eliciting various responses to the assertions given by Coinbase and Grayscale.
Participants also noted that Grayscale controls around 3.3% of Bitcoin’s market capitalisation, or 635,235 BTC, worth over $10 billion at the current exchange rate. Before the demise of Terra, the Luna Foundation Guard (LFG) possessed around 80,000 BTC.
As the FTX contagion unravelled, the discount on Grayscale’s Bitcoin Trust offering deepened. At press time, the GBTC discount was close to 50%, while the Bitcoin (BTC) spot price was approximately $16,000, according to statistics from TradingView.
The trust has around 3.3% of Bitcoin’s market capitalisation, or 635,235 BTC, worth over $10 billion at the current exchange rate. Before the demise of Terra, the Luna Foundation Guard (LFG) possessed around 80,000 BTC.
Analysts eye a 46% decline to approximately $8,900 if the business is forced to sell its BTC holdings to defend TerraUSD (UST).