Factbox: The many companies in Digital Currency Group's crypto ... - Reuters
Welcome to our AI Robot Trader website! Thank you for taking the time to read our collected news articles on bitcoin, crypto, and forex. We hope you have found the information on our site to be valuable and informative. At AI Robot Trader, we are dedicated to providing the latest news and insights on the world of automated trading and cryptocurrency. We believe that these technologies have the potential to revolutionize the way we do business and invest, and we are excited to share our knowledge and expertise with our readers. We are also pleased to announce that our website is for sale to the right person looking to partner with us. If you are interested in leveraging the power of AI and machine learning to revolutionize your trading and investing strategies, we would love to hear from you. Thank you again for visiting our website. We hope you will continue to follow us for the latest updates and insights in the world of AI robot trading and cryptocurrency.
Jan 12 (Reuters) - U.S. crypto company Digital Currency Group (DCG) is at the center of the industry's latest meltdown after one of its companies, Genesis, froze customer withdrawals in November.
Genesis said it is working to avoid a bankruptcy, but investors fear its collapse could bring down other connected companies and projects.
Here is what we know about the many companies Digital Currency Group owns:
COINDESK
DCG acquired crypto news website CoinDesk in 2016 after previously investing in the outlet. TechCrunch at the time pegged the deal as being worth about $500,000 to $600,000.
CoinDesk in November published a leaked balance sheet of Alameda Research, the crypto trading firm founded by Sam Bankman-Fried. Many industry observers cited the report as the catalyst for the downfall of Alameda and Bankman-Fried's crypto exchange FTX, which filed for bankruptcy less than two weeks later.
GENESIS
Genesis Trading was originally the bitcoin trading division at DCG Chief Executive Barry Silbert's SecondMarket, but relaunched with its new name as a subsidiary of DCG when Silbert started the venture firm in 2015.
Genesis' crypto lending arm, Genesis Global Capital, announced in November its crypto lending arm would stop making new loans and blocked customers from withdrawing funds, citing the market dislocation caused by the collapse of FTX.
Genesis Global Capital had partnered with a number of other crypto companies, including crypto exchange Gemini, to offer a crypto lending product. Gemini now says its customers are owed $900 million from Genesis.
Genesis owes more than $3 billion to its creditors including Gemini, according to a person familiar with the matter.
DCG itself owes $1.675 billion to Genesis' crypto lending arm, according to a November letter Silbert sent to shareholders. That includes a $1.1 billion promissory note that appears to be connected with liabilities DCG assumed from Genesis after it was hit hard by the collapse of Singapore-based crypto hedge fund Three Arrows Capital.
GRAYSCALE
Silbert started Grayscale Investments in 2013 after he stepped down as CEO of SecondMarket. After selling SecondMarket to Nasdaq Inc (NDAQ.O) in 2015, he launched DCG, with Grayscale as one of the firm's subsidiaries.
Grayscale's flagship Grayscale Bitcoin Trust (GBTC) is the world's largest bitcoin fund, one that the company hopes will someday be converted into an exchange-traded fund.
GBTC has not traded at a premium relative to the price of bitcoin, its underlying asset, since early 2021. DCG embarked on an effort to reduce the discount in 2021, announcing a plan to spend up to $1 billion to purchase GBTC shares.
Troubles at Genesis' lending business had no impact on DCG and its subsidiaries, DCG said in November, while Grayscale said its underlying assets were unaffected.
OTHER VENTURE CAPITAL INVESTMENTS
DCG is a prolific venture capital investor, listing more than 160 companies in its portfolio on its website, of which it has acquired 28, it says. Crypto exchange Luno and crypto mining and staking firm Foundry are listed as subsidiaries.
DCG is also an investor in U.S. crypto exchanges Coinbase (COIN.O) and Kraken, and its other holdings include the U.S. firm Circle, which runs the stablecoin USDC, and blockchain analytics companies Chainalysis, Dune Analytics, Elliptic and Etherscan.
Reporting by Elizabeth Howcroft in London and Hannah Lang in Washington; Editing by Lananh Nguyen and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.
Elizabeth Howcroft
Thomson Reuters
Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving "Web3".
AI robot trading is the use of artificial intelligence (AI) and machine learning algorithms to analyze financial markets and execute trades automatically. AI robots are able to analyze vast amounts of data and make decisions based on that analysis, allowing them to identify trading opportunities that might be missed by human traders. One key aspect of AI robot trading is machine learning, which is a type of AI that enables systems to learn and improve their performance over time. Machine learning algorithms are able to analyze data and use it to make predictions or decisions without being explicitly programmed to do so. This allows them to adapt and improve their performance as they are exposed to more data. There are several techniques that can be used in AI robot trading, including: Decision trees: These are algorithms that use a tree-like structure to make decisions based on multiple conditions. Neural networks: These are algorithms that are inspired by the structure and function of the human brain, and are capable of learning and adapting based on input data. Genetic algorithms: These are algorithms that use principles of genetics and natural selection to optimize and improve their performance over time. Reinforcement learning: This is a type of machine learning that involves an AI agent receiving rewards or punishments for certain actions, and using that feedback to learn and adapt its behavior. By using these and other techniques, AI robot traders are able to analyze financial data and make informed decisions about when to buy and sell assets. This can help them achieve better returns and outperform human traders in some cases.