Mark Yusko, a well-known hedge fund manager, pointed out two crypto companies to watch out for in the wake of the FTX collapse. He also expressed his opinion that the crypto bear market is not going to slow down. Here are the details…
Yusko draws attention to two crypto platforms after FTX crisis
In a recent interview, Yusko focused on two cornerstones of the crypto industry: GBTC and Tether. According to Yusko, the FTX event has the potential to cause serious damage to the market with additional pressure from Genesis Capital (similar to Grayscale). First, Yusko expressed his concerns about the possible liquidation of the Grayscale Bitcoin Trust (GBTC). According to Yusko, liquidation of GBTC would be very bad in the short term. He also states that CEO Barry Silbert is desperately trying to raise money. On the other hand, he states that they have a billion-dollar deficit caused by FTX and Genesis.
cryptocoin.com As we reported, Grayscale Bitcoin Trust is the largest Bitcoin fund that provides investors exposure to Bitcoin without actually buying BTC. Following the collapse of FTX, DCG (Grayscale’s parent company) CEO Barry Silbert announced that the company was stuck in $2 billion in debt, according to some reports. Currently, the investment vehicle is trading at a discount of 42.37%. Premiums fell to a record low as rumors of bankruptcy began to creep in at FTX.
Concerns remain about Tether
Yusko then switched to his second concern, Tether. As it is known, Tether is the company behind USDT, the largest stablecoin by market cap. Yusko drew attention to Tether’s relationship with FTX. As it is known, it was claimed that Tether did not disclose its assets in a boutique Bahamas bank in May. Echoing the narrative, Yusko pointed out that the former CEO of FTX, SBF is also in the Bahamas. He also said:
It worries me that they’re in the Bahamas with the SBF. If there was a problem here, it would be ugly for the cryptocurrency community.
The collapse of FTX sent shock waves to the market
As we reported, the tragic fall of one of the largest cryptocurrency exchanges has created shock waves in the crypto industry. The FTX collapse directly affected crypto users, investors, and related companies, especially after its contagion became severe. Crypto exchanges are trying to maintain investor confidence. Meanwhile, it is under pressure to ensure greater accountability and transparency.
Apart from that, the drop severely affected the confidence of investors. Meanwhile, the growing negative atmosphere also dealt a blow to the industry. Confidence of individual investors faced a significant decline. Many customers on all centralized exchanges have started to move their funds to cold storage. These are just a few of the reasons why the bear market is going on longer than expected.
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