EddieJayonCrypto
7 Feb 23
• DCG agrees to sell Genesis to major creditor group, including Gemini who will invest $100M in the deal• DCG also sells $22M in Grayscale shares• Binance is forced to temporarily halt US Dollar transfers beginning February 8th until they can identify new banking partners; we knew this was coming• S...
• DCG agrees to sell Genesis to major creditor group, including Gemini who will invest $100M in the deal• DCG also sells $22M in Grayscale shares• Binance is forced to temporarily halt US Dollar transfers beginning February 8th until they can identify new banking partners; we knew this was coming• South Korea defines security tokens, non-security tokens and exempts stablecoins in newly published regulations• AMC Theaters wants to implement a stadium seating pricing model; I'm doneWe finally have some big news in the DCG/Genesis/Gemini debacle. Here is what is on my mind today.1. You know things are bad when creditors start selling debt. There is one crypto mining executive that sold $4M worth of Genesis debt to investment bank Jeffries for $1M. That is a massive 75% realized loss. Sure it can turn into a tax write-off, but wow! Then you turn around and see DCG start selling assets just as I said they would. One of the latest transactions was to sell some Shares of Grayscale for about $22M. DCG says this is a part of their portfolio rebalancing, but it sure does smell like they need liquidity. In the biggest move, DCG agrees to sell Genesis as a part of a deal with major creditors. Reported by CoinDesk, another one of their holdings, the deal will see the sale of the lending and trading arms of Genesis. The group was owed about $2.4B in aggregate. Details of the deal are not known yet, but it is said that Gemini will be putting up about $100M for their Earn customers as a part of that deal. I am sure there will be more to come since the deal has to be finalized. 2. Binance will temporarily halt all bank transfers in US dollars starting February 8th. A lot of people are yapping about the downfall of the world's largest crypto exchange. They are factually wrong. I have been reporting for some time that certain banks have been decreasing their crypto exposure. This has affected US Dollar transfers. Once Binance is able to cut a deal with other banks USD transfers will resume. This issue dos not affect BinanceUs operations. 3. Whether you realize it or not other countries are far more advanced when it comes to crypto legislation. South Korea is one of them and they seem to be setting the example on how to bring crypto into the mainstream. The country's Financial Services Commission has published guidelines defining security tokens and how they will be brought into the regulated environment. Stablecoins are exempted and are not defined as security tokens. Hey also made it clear that tokens that meet a decentralization threshold are also outside the realm of the regulations. Clearly some serious thought has been given and they are taking a stance. This will wind up being an example for the rest of the world. 4. On a side note, I think management over at AMC Theaters are smoking too much. They have the same old theaters with maybe some chair upgrades. Just keep in mind the spaces are the same. Now they want to charge you based on where your seat is. I would rather wait for movies to come to streaming and watch in the comfort and hygienic safety of my own home. It is not like stadium seating. I think this is going to prove to be a major mistake.