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- š¦§ Winklevoss vs Barry = Market Capitulation?!
š¦§ Winklevoss vs Barry = Market Capitulation?!
plus FTX finds $5bn, DOGE is no longer a Twitter coin? and Gensler targets US Army
GMGM, Happy Thursday Frens!
Today is a big day and depending on when you read this the market will have reacted to the latest CPI numbers from the FED. Soft landing? Bear trap? or the start of a Q1 bull run into earnings season?!
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/a267f932-951b-4dfc-9abe-d790622e166f/88830721-d032-40a3-9480-9500625ca198_1218x678.jpg)
But before all that, letās take a look into The Winkles vs Barry and if this is going to be what capitulates the marketā¦ again?
If youāre new around here, then hit that subscribe button. Weāll keep you updated with Hot Crypto News // Project Reviews // Industry Secrets.
The TLDR of whatās inside
š„ The Big Topic: The Winkles vs Barry = Capitulation?š Hot Crypto News: Avalanche partner with Amazon Web Services, FTX (magically) find $5bn of liquid assets, is DOGE no longer the Twitter Coin? and Gensler tells US army NOT to FOMO in and MOREš Updates Across the Block: Dopex partner with Lido, dYdX token unlock, Gumball goes live on Arbitrum, PendleFi support Rocketpool and MORE.š” Chart of the day: $SOL, has it run out of steam or is this a retrace ready for $40?
š„ The Big Topic
The Winkles vs Barry = Capitulation?
Right, this is getting way out of hand now.
If youāre in discord with us youāll know Iāve been saying that this might be the next (hopefully final) leg of the capitulation cycle. The cycle that started with the Luna/UST collapse taking out 3AC, which then led to SBF pimping around the Bahamas in his Corolla, co-mingling funds with Alameda.
DCG is in a bit of a pickle and the Winkles want bloodā¦ Barryās blood.
This, IMO, could be that annoying capitulation event that ruins our up only momentum for a short period of time and hereās whyā¦
How did we get here?
Greedy plebs playing around with magical internet beans that were transacted in a flywheel of colours, ribbons and fairy dust.
Digital Currency Group (DCG) is an investment group that owns crypto lender Genesis. They lent a lot of money to a lot of the wrong people and got very, very rektā¦ including crypto exchange Gemini through the Genesis Earn Program.
Barry Silbert, CEO of DCG, first got rekt when 3AC (3 Arrows Capital) collapsed, wiping out over $1.2bn of their $2.6bn loan in the blink of an eye as Luna collapsed. Which DCG reportedly absorbed and claimed ābusiness as usual.ā This was clearly not the case as DCG entered into a 10-year āI promise to pay you by 2032ā promissory note with Genesis, obviously doing nothing for the current liquidity issue.
And then SBF and his goon squad happenedā¦
SBF, FTX and Alameda had used Genesis to take out billions of dollars worth of loans and when they all simultaneously imploded, the billions of dollars worth of magical internet beans vanished - poof!
Obviously, these large sums of money disappearing into thin air have exposed 2022ās best zero-sum trade as it begins to fully unravel itself in a whole world of pain that even the accountants are having a hard time hiding.
Fast forward to today
The Winkles love a good letter and call out Tweet. Itās mad to think that Twitter has become the official arena for billion-dollar businesses to duke it out! Anyway, this is what Cameron wrote to Barry:
Earn Update: An Open Letter to @BarrySilbert
ā Cameron Winklevoss (@cameron)
2:02 PM ā¢ Jan 2, 2023
TLDR: you stole a husband and wife's life savings, a familyās college education fund and a fatherās bar mitzvah money for his son. Can we please have our $900m back?
As of Tuesday, Jan 10th, the Winkles went after Barryās head in this letter addressed to the Board of DCG, which included a royal F-Bomb accusing him of āfraudā and not being āfit for service.ā
Earn Update: An Open Letter to the Board of @DCGco
ā Cameron Winklevoss (@cameron)
1:40 PM ā¢ Jan 10, 2023
TLDR: you publicly lied, you privately lied AND you committed accounting fraud so itās time to go, serrr!
EXCLUSIVE LIVE ACTION FOOTAGE: Cameron Winkle and Barry were spotted squaring off in the street.
"Winklevoss Demands Removal Of DCG CEO Barry Silbert"
Live view of the Winkelvii & Barry exchanging letters.
ā Hsaka (@HsakaTrades)
1:55 PM ā¢ Jan 10, 2023
Is Capitulation around the corner?
Ok so hear me out here. I could be wrong and I hope I am for the sake of all of our bags butā¦
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/c81e3aa2-4f83-4579-ac83-c8c046a1e866/11152685-9f7a-477d-801a-4064ff65ab09_1272x340.png)
So, Genesis lent money to 3AC. They then created GBTC shares to use as collateral to borrow more in order to gain a premium on the net asset value (NAV) as GBTC was trading at a premium. Once the premium was claimable after 6 months, 3AC was able to cash it in, thereby killing off the NAV and degrading the GBTC collateral position.
Kamikaze at its finest.
Sprinkle a whole lot of FTX fraud, scandal and collapse and itās no wonder DCG and Genesis are in such a sticky situation.
Tommy Shaughnessy from Delphi Digital breaks down the numbers along with plausible next steps to nuke town.
DCG Situation:
- DCG Owes $2.025B
- Genesis can call their $1.675B loan
- Genesis owes $900M to GeminiDCG Liq
- Grayscale $10B AUM x 2% = $200M x 3x multiple = $600M
- GBTC/ETHE Holdings = 9.7%/3.8% = $629M with discount, $1.17B at Par
- VC book = Firesale values in a bearā Tommy Shaughnessy (@Shaughnessy119)
7:46 PM ā¢ Jan 5, 2023
If it gets ugly then it gets real ugly real quick if DCG canāt raise the money needed to pay off creditors and they may need to nuke their GBTC/ETHE holdings.
Iād like to think that this is priced in due to it being a public story. But regardless, nuking a $600+m bag of anything will make number go down faster than last weekās NewYearNewYouInu rug pull.
Stink bids set at $8,000 BTC and $600 ETH, anyone?!
Whatās next for Genesis?
The Winkles have cancelled the Master Loan Agreement (MLA) with Genesis which may result in Genesis filing their Chapter 11, while their loan defaults lead to forced liquidation of assets.
AKA the NUKEing of that phat bag of Bitcoin and Ethereum.
So...um....Chapter 11?
ā CryptoCondom (@crypto_condom)
7:51 PM ā¢ Jan 10, 2023
Ohhh and we will probably see another tweet threadoooor from the Winkles.
LATEST DEVELOPMENT
Ok so during the final edit, this slipped into the DMs:
UPDATE: 70% via counter proposal from DCG yesterday?? Were all @GenesisTrading creditors offered the same deal?
** @bitvavocom releases a statement that theyāve rejected a 70% return of funds from DCG/Genesis. Developing.
ā Andrew (@AP_Abacus)
4:33 AM ā¢ Jan 11, 2023
Conclusion
At this point, it would start to make sense if Barry spoke to Larry at BlackRock to see if he wants to buy out the Grayscale trust at a fire price to merge into his Bitcoin bags.
Keep in mind this story evolves daily and the outcome of capitulation is purely speculative, but the case is valid and itās one Iām mentally preparing for.
and Remember frensā¦ youāre not going to make it back in one trade and telling pork pies leads to bad karma!
Oh, and I could have summed this whole thread up in this one Tweet:
How Grayscale, Genesis and DCG work
ā Pentoshi š§ (@Pentosh1)
6:29 PM ā¢ Jan 7, 2023
š Hot Crypto News
š® Bullish
FTX mysteriously finds $5bn in liquid assets (another down the side of the sofa find?!) adding to the $1bn found in December. How short they still are is unclear but $6bn + $425m held in the Bahamas might start to put a smile on creditorsā faces.
Ethereum Account Abstraction Upgrade could make it harder to lose your crypto as āaccounts could be programmed to include social recovery systems.ā
Binanceās bid for Voyager is a step closer as judge Michael Wiles āapproved disclosure statementsā with āanother confirmation hearing in March.ā Voyager creditors will also need to green-light the deal favourably. VGX pumps 40%.
AVAX š¤ AWS to bring wider adoption of blockchain technology by enterprises, institutions and governments, Amazon Web Services will support Avalancheās infrastructure and help developers launch and manage nodes.
Weāre joining forces with @amazon to help enterprises and governments build compliant blockchain solutions.
#AWS makes it easier to launch and manage #Avalanche nodes, giving the network more strength and flexibility for developers.
ā Ava Labs šŗ (@avalabsofficial)
7:12 PM ā¢ Jan 11, 2023
š» Bearish
Gensler targets the US Army calling crypto "the Wild West" and is heavily urging troops not to āget caught up in the FOMO.ā
Is DOGE down and out? As pictures of new āTwitter Coinsā and āCreator Rewardsā, the platformās digital currency get leaked. Whilst Dogeofficialceo Tweets āDonāt get disheartened if the āTwitter Coinā rumor comes to fruition and itās not #dogecoin.ā
CoinBase dumps another 950+ employees in an effort to reduce costs and battle the tightening crypto winter. But Cathie Wood did just buy another $1.45m in COIN shares.
GALA games dumps after Tweet announcing a partnership with former wrestling superstar turned Hollywood Actor, Dwanye āThe Rockā Johnson, is deleted.
$GALA, @GoGalaGames' native token, stumbles after the blockchain-based gaming platform deleted a tweet announcing a partnership with @TheRock and @markwahlberg.
Despite the pullback, the token is still up over 130% for the month.
bit.ly/3X2Kmp3ā CoinDesk (@CoinDesk)
3:59 PM ā¢ Jan 11, 2023
š Updates Across the Block
CONSENSYS, launch zkEVM private beta with more users being onboarded soon. Details in the thread.
DOPEX, launch stETH SSOV in partnership with Lido Finance generating over $2.4m in TVL in 24 hours.
DYDX, token unlock coming up on Jan 17th.
FRAX, governance proposals for $frxETH and $sfrxETH going multichain have been submitted including Arbitrum and Optimism.
GUMBALL, goes live on Arbitrum.
KUJIRA, governance proposal submitted to allow Luna to be used to mint USK. End Jan 13th.
SPICEFINANCE, partner with Abacus and to celebrate are giving away 5 Prologue NFT WL spots.
STFX, receives strategic investment from Avalanche with their token sale starting Jan 16th.
OPTIMISM, Goerli testnet upgrades to Bedrock starting Jan 12th at 6pm UTC.
PENDLEFI, will support the Aura rETH-WETH pool (Rocketpool) and this thread goes into detail on āThe Pendle ETH Maxi Arc.ā
VECTORFI, proposal passed to list VTX on TraderJoe. Participation in the governance vote qualifies for a limited edition POAP.
and finally, CPI numbers are announced today. Do you see the FED dropping to 25 BPS or keep 50BPS leading into Februaryās meeting? Send your thoughts in Discord General Chat
Yeahhh I don't see this happening as what JP is doing is working and too many "market experts" are calling for a soft landing.
IMO 50 bps until Q3 and then maybe...just maybe a Christmas rally off the back of 25 bps
ā Chadmandan (@byChadManDan)
6:44 AM ā¢ Jan 12, 2023
š” Chart of the day
$SOL, running out of steam?
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/d01eecd0-9bb2-4754-86db-5b697bc3267c/0f638fe7-6761-4bbc-a9d1-064d0d6dfdf6_2708x1430.jpg)
Oh Solana, you have BONKād your way to almost $20 and reinspired an ecosystem of builders and degens.
But is the journey over?
After any good run, there is always a pull back and the Daily RSI is beginning to lose some steam BUT can this be a sustained move to the upside with the likes of BONK and other major projects, like HXRO, continuing to build the Solana Defi Ecosystem?
Bull Case, short term pullback that sees us break up past the $18.31 mark into uncharted territory to reclaim the HUGE imbalance sitting as high as $37.50+
Bear Case, it was all a dream and SBF and his goon squad dump any remaining bags sending Solana back down into the lower $10 - $12 range.
A look at whatās to come for the rest of the week leading into more BIG market-moving news coming out of the US.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/a48b1230-f6d7-410f-8f1a-332e7cb9e763/afbf9fc9-7ca0-4568-a4c8-e504b0150aa7_2152x648.jpg)
Keep safe ANON, take profits and degen smart!
š¤ A Final Word
and a quick word from our super awesome sponsors who help us make this all possible
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