Grayscale Could Be the Next BIG Bankrupt

It all started with a report on the CoinDesk website that revealed the presence of billions of dollars of illiquid FTT tokens on the balance sheet of Alameda, a fund that is closely associated with the FTX exchange.

The founder of Binance sold $500 million worth of FTT tokens and justified this decision with risk management reasons. At the time, it was not clear whether Alameda’s problems would affect FTX in any way, but investors immediately panicked about the stability of the exchange, which led to a liquidity crisis and the bankruptcy of FTX and Alameda.

Alameda Research was one of the biggest hedge funds. According to the bankruptcy filing, its assets at the end of September amounted to $13.46 billion. This is about the same as the assets managed by Bill Ackman, Paul Tudor Jones or Jeffrey Talpins.

It is known that the FTX crypto exchange owes more than $3 billion to the largest creditors.

Against the backdrop of the collapse of FTX, crypto exchanges rushed to prove their worth. Binance reported that its internal stabilization fund SAFU was increased to 1 billion.

Although according to Bank of America, evidence of reserves from crypto exchanges has too many flaws to inspire confidence.

But not all crypto giants are looking to prove their resilience. For example, the Grayscale fund (assets reached $50 billion in 2021) refuses to provide evidence of the presence of reserves, since, in its opinion, this harms the security of its clients.

As a result, rumors even spread that Grayscale may become the next bankrupt after FTX. Then BTCUSD broke through the support around $18k. It is reasonable to assume that the community is afraid of new drops in the price of bitcoin and therefore react with alarm to such news.

In the meantime, BTCUSD is dropping towards support at 15800. In the event of a bearish breakdown, it could start to act as resistance, as it did (1) at 18100.