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THE CRYPTO CRASH WAS FORESEEABLE, CUSTODIA BANK CEO: CAITLIN LONG SAID

THE CRYPTO CRASH WAS FORESEEABLE, CUSTODIA BANK CEO: CAITLIN LONG SAID 

Signs of the use of bitcoin and cryptocurrensets have been around since 2018, Long said on Thursday, and while he hopes the digital assets acquisition course will be heard, regulators will still be accused of not ridding the bad actors quickly and by not allowing good companies. and products in the industry.


"They [regulators] did not enlighten the good players as needed," Long said. "And again, they were not persecuting the bad people as much as they should be."


Long said Grayscale Bitcoin Trust (GBTC), one of the few Securities and Exchange Commission (SEC) -invents authorized by investors to obtain bitcoin exposure through their brokerage accounts without the need to buy, retain or protect their BTC, has finally been “delivered. with large amounts of hedge fund and caused damage to the industry and really destroyed the value. "Greyscale is owned by Digital Currency Group, which also owns CoinDesk.


In that case, because of the imbalance between supply and demand, the price of GBTC traded much higher than the market price of bitcoin (BTC), which acts as a hedge fund that brought significant valuation values, Long said. Store investors have bought, but only until the SEC approved competing products. Once the competition was in place, closed funds such as GBTC postponed courses and began trading at a discount on their asset value.


On Friday, Grayscale filed a lawsuit against the SEC after the agency rejected Grayscale's request to convert the GBTC into a trading fund.


"My gut tells me that there are some people in the SEC who wish it had never happened because it took them more than six years to light up another product in order to compete," Long said. "So that premium stayed there and a lot of pop-pop investors were hurt by whipsaw, as the whole industry did."


While Long could not accurately predict what the next SEC move would be, he said the market turmoil is due to regulatory decisions. He cited the cryptocurrency market maker and lender Genesis Global Trading, as it faces the loss of nine people due to the exposure of the crypto hedge fund Three Arrows Capital, now facing collapse. (Genesis is owned by Digital Currency Group.)


And while questions remain about surrounding companies that still use bitcoin, Long said it would be good for the industry to "speak well of everything."


"I would rather see it all go away," he said, and instead, "rebuild [the industry] based on an energy-efficient business model."

Source: yahoo




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