Why No One Talks About Anymore
Barry Silbert Promotes Positive Change for BTC
Barry Silbert is one of the most influential figures in the crypto world. He is the founder and CEO of Digital Currency Group (DCG), a conglomerate of five cryptocurrency-focused companies that have invested in more than 200 crypto startups.
Grayscale, a company that manages $28 billion worth of digital assets, is DCG’s main source of income. Grayscale allows investors to access cryptocurrencies without having to deal with buying or storing them themselves.
Other companies under DCG include Genesis Trading, a service for lending and trading cryptocurrencies; Foundry, a provider of mining and staking solutions for cryptocurrencies; CoinDesk, a top platform for news and events related to cryptocurrencies; and Luno, a global service for exchanging and storing cryptocurrencies.
In 2012, Silbert was an investment banker at Second Market, a platform for dealing with illiquid assets. He discovered Bitcoin from niche internet blogs and decided to buy about $175,000 worth of it at an average price of $11 per coin. This was the beginning of his path to becoming a crypto millionaire.
He rapidly gained an enthusiasm for Bitcoin and other cryptocurrencies as a means to change the global financial system. He established the Bitcoin Investment Trust (now called Grayscale Bitcoin Trust) in 2013 as the first public option for investing in Bitcoin.
Genesis suffered huge losses and liquidity problems. In November 2022, Genesis announced that it was halting client withdrawals from its lending unit due to “extreme market turmoil and loss of industry confidence” following the demise of FTX. FTX was one of the largest crypto exchanges in the world before it filed for bankruptcy on Nov. 15 after losing billions of dollars in leveraged bets on Bitcoin futures.
FTX’s bankruptcy had a ripple effect across the cryptocurrency industry, causing a sharp decline in Bitcoin prices and a loss of trust in crypto platforms. FTX was accused of engaging in risky trading practices, such as offering up to 100x leverage on Bitcoin futures contracts, which amplified its losses when the market turned against it. FTX was also alleged to have mismanaged customer funds and violated securities laws.
Silbert has rejected any misconduct and said he is cooperating with Gensis Trading and its creditors to reach a solution. He has also praised his other businesses, such as Grayscale and CoinDesk, which he said are doing well despite the market chaos.
Despite the setbacks, Silbert remains optimistic about the future of crypto and his role in it. He recently tweeted that he is “more bullish than ever” on Bitcoin and that he believes DCG will emerge stronger from the crisis.
Silbert’s story demonstrates how crypto can produce immense wealth but also entail significant risks for investors and entrepreneurs alike. He is an example of someone who identified the potential of crypto early on but also experienced the volatility and uncertainty of a budding industry.