Grayscale says its crypto are SAFU but shows no Proof of Reserve

over 1 year ago

Hi HODLers,

Following the recent events, no exchange or crypto company is seen as safe. Even Grayscale has been under pressure to show proof of custody of its crypto holdings.

The company said that:

all crypto underlying its investment products are stored with Coinbase’s custody service.

Nevertheless, they stopped short of revealing the wallet addresses.

Source

Additional pressure came after Genesis Global, serving as the liquidity provider for GBTC, announced on Nov. 16 that:

it had halted withdrawals, citing “unprecedented market turmoil” resulting in significant withdrawals from its platform that exceeded its current liquidity.

I am not too worried as I believe Coinbase is a serious regulated US company and has custody of Grayscale's BTCs. The only thing is that they probably had some of their cryptocurrencies on Genesis for liquidity purposes. I hope it is a small part and they did not get too greedy trying to extract a yield from Genesis Yield Products.

These cryptocurrencies at Genesis are currently at risk.

Stay safe,