Grayscale refuses to share proof of reserves due to ‘security concerns’ as shares trade at a 45% discount to bitcoin

CNBC ^ | 11/21/2022 | MacKenzie Sigalos

[Presbyterian Reporter]

Grayscale, the asset manager running the world’s largest bitcoin fund, said in a statement Friday that it won’t be sharing its proof of reserves with customers. “Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure,” Grayscale wrote in a statement. Representation of cryptocurrency and Gayscale logo displayed on a phone screen are seen in this illustration photo taken in Poland on November 6, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images) The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin ETF, citing a failure by the investment manager to answer questions about concerns around market manipulation. ---SNIP---

While bitcoin is down 72% over the last 12 months, GBTC has recorded an 82% loss in that same period, as of last Friday. The spread reflects a significant disparity between the value of the trust’s sole holding and the open market price for a share in the trust.

[Theoria]

[SecondAmendment]

Where are all of the "Crypto Bulls" crowing about Bitcoin being the best thing since the invention of currency now ?

And even worse,Bitcoin's public ledger can be hacked if an actor has enough compute power and bandwidth available as stated in its seminal abstract.

That alone has always made me very suspicious about who "Satoshi Nakamoto" really is and his motivations behind creating Bitcoin.

[Chode]

crypto, the ultimate fiat currency...

[aMorePerfectUnion]

I agree. From the start, BTC is up 1,333%, even after this terrible correction.

That said, I think the bottom on GBTC... assuming the worst, is likely in the range of $4.32.

This would be another very large drop, so buying has the risk of an uncertain governmental future and a falling share price.

It does not matter to me either way ,but it may be a high risk opportunity.

[Presbyterian Reporter]

Here is another crypto that has imploded—

CNSRF
COINSHARES INTL LTD SHS

52 Week Range
2.32
11/15/2022
10.11
11/22/2021

[aMorePerfectUnion]

Where are all of the "Crypto Bulls"

Being a Perma bull is as foolish as being a Perma bear.

There are cycles to every investment under heaven - because they are based on human behavior.

[StAnDeliver]

I mean, the fact that they won’t show balance sheets is right there in their name - Grayscale! It’s hilarious.

[pas]

Kind of a block chain reaction.

[SecondAmendment]

> There are cycles to every investment under heaven - because they are based on human behavior.

Good point, however I don't see how an instrument such as "crypto currency", which taken literally means " secret currency" could ever be a wise mainstream investment since by definition there is no central authority governing it, thus no legal protections against theft.

As far as I know, the only prosecutions here in the US involving crypto currency thefts dealt with money laundering, tax evasion, and extortion.

[Presbyterian Reporter]

And in related scam company news, here is latest on Carvana-—
CVNA CARVANA CO CL A

52 Week Range
6.50
11/08/2022
296.70
11/29/2021

https://www.thestreet.com/technology/the-collapse-of-carvana-the-amazon-of-used-cars-continues

Collapse of Carvana, the ‘Amazon of Used Cars’, Continues
Online used-vehicle dealer faces a mountain of financial and legal challenges.
LUC OLINGANOV 19, 2022 4:26 PM EST
The sky is not clearing up for Carvana.

On the contrary, big clouds continue to gather over the company which was one of the big winners of the covid-19 pandemic, with a massive growth.

Since announcing its quarterly results on Nov. 3, Carvana (CVNA) - Get Free Report shares have lost 44% of their value and are currently trading at $8.06 versus $14.35 on that day. This translates into a decline in market capitalization of approximately $1.1 billion in two weeks. Carvana currently has a market value of $1.43 billion.

[Georgia Girl 2]

In other words they are in big trouble.

[aMorePerfectUnion]

—> Good point, however I don’t see how an instrument such as “crypto currency”, which taken literally means “ secret currency” could ever be a wise mainstream investment since by definition there is no central authority governing it, thus no legal protections against theft.

GBTC trades through the OTC market, regulated by government authority.

Personally, I see BTC as simply a means of exchange.

I’ve used it that way.

But I’ve also speculated on its price movement… as I have with many commodities and asset classes.

Probably not a good mainstream investment since people are mostly ignorant about investing.

[DannyTN]

Would be funny if Crypto wiped out the assets of all criminals and all organized crime all over the world.

[Vermont Lt]

Gemini and graystone are owned by the same holding company.

[HamiltonJay]

ALL CRYTPO IS A SCAM.... period.

So far, they have been able to keep finding the bigger fools..

Eventually this will no longer be the case, just a matter of when.

[GOPJ]

I have a some tulip bulbs I’d like to sell - new variety - worth a fortune in the future.

[GOPJ]

...giant Digital Currency Group (DCG) could be in trouble after its crypto lender Genesis was forced to pause withdrawals and reports emerged it’s seeking an emergency $1 billion loan.

That is bad news. It's how panic selling starts.

[EVO X]

Way back in the day Crypto communication links were only good for a certain amount of time. What has changed some 40 years later?

[SecondAmendment]

> Probably not a good mainstream investment since people are mostly ignorant about investing.

It sounds like you have done your "homework" and know the risks, much more than Sequoia Capital did with FTX :).

[HamiltonJay]

You are confusing crypto communication and crypto currencies, NFT’s and other things... They are not the same things.