Since the FTX issue, the question of evidence of assets has gained popularity, and it appears that if companies refuse to produce it, Grayscale experts may move in.
An impartial analyst had spent days searching through the network to independently confirm Grayscale Bitcoin Fund’s (GBTC) assets since the virtual asset management company is refusing to give evidence of reserves.
By using on-chain forensic, our OXT Market analyst Ergo was able to determine that on 23rd Nov, the GBTC owned over 6.33k Bitcoin, which were kept by its custodians, Coinbase Custody.
Since FTX’s demise, other exchangers and virtual asset managers have been under growing pressure to demonstrate that they actually have the cash they purport to. A major black swans event could be the redemption of GBTC’s assets or its bankruptcy. Given that both Genesis Global Trading and Grayscale were affiliates of the troubled cryptocurrency lender Online Currency Group, there are further reasons to be concerned about their affiliation.
Independent Research Confirms Grayscale BTC’s 633K Bitcoin:
Following Coinbase’s earlier this week attestation of the assets, the corroboration of its assets will instill some amount of trust in buyers in the business and the industry in general.
After Grayscale withheld on-chain PoR on November 18 because to security issues, Ergo tweeted on November 20 that they were investigating GBTC’s holdings.
Ergo were able to utilize public information and chain forensic to trace a value of around 317,705 bitcoin in four thirty-two addresses to potential GBTC custodial activity by knowing that perhaps the majority of the funds had just been moved from Grayscale’s prior service software Xapo to Coinbase Custody.