Coinbase Custody backed up a product breakdown published by Grayscale over the weekend amid questions from users about the firm’s digital asset offerings.
While the company released a product breakdown now confirmed by Coinbase Custody, wallet addresses were withheld citing security concerns. Instead, the entity assured users that assets are safe and that Coinbase conducts regular on-chain checks to safeguard the underlying cryptocurrencies of each product offering.
7) We know the preceding point in particular will be a disappointment to some, but panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.
The statements issued by both Coinbase and Grayscale received mixed reactions due to skepticism as multiple centralized entities like FTX, Terra, and Three Arrows Capital have burned off billions from crypto portfolios.
Participants also highlighted that Grayscale owns around 3.3% of Bitcoin’s market cap, some 635,235 BTC worth over $10 billion at today’s price. Prior to Terra’s implosion, the Luna Foundation Guard (LFG) held around 80,000 BTC.
Grayscale Hold 635K BTC, Bitcoin Trust discount eyes 50%,
Amid the unraveling FTX contagion, the discount of Grayscale’s Bitcoin Trust offering widened further. The GBTC discount was close to 50% at press time while Bitcoin (BTC) spot price traded around $16,000, per TradingView data.
Participants also highlighted that the trust owns around 3.3% of Bitcoin’s market cap, some 635,235 BTC worth over $10 billion at today’s price. Prior to Terra’s implosion, the Luna Foundation Guard (LFG) held around 80,000 BTC.
Analysts predict a 46% drop to around $8,900 if the company is forced to offload its BTC holdings as the LFG did to defend TerraUSD (UST).
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