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Popular Youtuber and digital currency influencer Chico Crypto recently posted a video explaining his thoughts on the Digital Currency Group’s (DCG) ties to the so-called “deep state” and the hostile takeover of Bitcoin.
An overview of Digital Currency Group and the company’s takeover of Bitcoin
Chico Crypto begins with a summary of the current situation; FTX imploded, there are rumors that Binance is on the brink, and Barry Silbert’s DCG is in financial trouble. He points out that if DCG goes down, it will be a crash on another level, and regulators will immediately target the digital currency markets.
Who is Digital Currency Group? It is a huge company that has stakes in many key companies in the digital currency industry. Grayscale Bitcoin Trust (GBTC) is one of them. Chico notes that the price per share of the trust is down 85%, and that there is a huge discount in the price per share (50%), the largest in history, and a clear indicator that things are not going.
DCG also owns Genesis Global Capital. Its lending platform recently interrupted withdrawals with over $2.8 billion in total active loans at the end of Q3 2022. This primarily serves institutional clients, so if it drops there will be trouble ahead. The fact that she recently applied for a billion dollar loan suggests that the problems could become a reality sooner rather than later.
“DCG has major issues,” Chico points out, going on to list some of his other interests in the industry. These include holdings in Blockstream, Chainalysis, Circle, Coinbase (NASDAQ: PIECE OF MONEY), Etherscan, Kraken, Paxos, Ledger, Ripple, Silvergate Bank and many more. A DCG collapse would almost certainly drag down the industry as we know it for good.
Is this a deliberate attack on the digital currency industry?
Chico is known for looking at things from all angles, including potentially conspiratorial ones. He recently explained how the founder of FTX Sam Bankman Fried and his family had ties to Senator Elizabeth Warren, Securities and Exchange Commission Chairman Gary Gensler, and the broader Democratic Party.
“It’s even worse with DCG,” Chico says, pointing out how Lawrence Summers and Glenn Hutchins were listed as either board members or advisors before DCG cleaned up this page on its website.
Hutchins is a major contributor to the Democratic Party, particularly Hillary Clinton, served in various roles in Bill Clinton’s campaign, and served on the board of directors of the Federal Reserve Bank of New York.
Summers is a former Treasury secretary under Bill Clinton and served as director of the White House National Economic Council under Barack Obama. He was also Chief Economist at the World Bank.
Chico plays a short clip outlining Mrs. Clinton’s views on digital currencies, which are not positive, and then draws the connection between these two and a potential attack on the industry.
The Scaling Wars and Attacks on the Bitcoin Protocol
However, the players involved are not the only ones concerned.
“DCG itself has proven time and time again that it doesn’t have the market’s best interests at heart,” says Chico.
He points to the scaling wars that saw Bitcoin branch off into BTC and BCH. He notes that DCG was a strong supporter of SegWitwhich fundamentally changed the Bitcoin Protocol. He points the finger squarely at DCG for starting these wars, pointing to a 2017 blog post where they agree to support SegWit and indicate that they will support increasing the block size to 2MB within six months.
Chico also points out that DCG was one of the first investors in Blockstream and exerts influence on company decisions. “Blockstream has been trying to support BTC development for a long time,” he says, pointing out a Reddit thread which details Blockstreams aggressive takeover attempts over the years.
“DCG has proven that they want to take over Bitcoin, and if they can’t, they will try to destroy it,” he says. He notes that FTX has seriously hurt retail speculators, and if DCG goes down and hurts institutional investors, it would be akin to a 1-2 punch that would give regulators the ammunition they need to act in a way aggressive against the industry.
A well-researched video that misses a key point
Chico Crypto did some solid research for this video, and that’s commendable. However, he is clearly a “crypto” fan and has yet to put the final pieces of the puzzle together – BTC itself is an attack on Bitcoin, and the entire digital currency industry has to die before anything good can happen. Regulators stepping in and crushing the criminal actors who have dominated the industry for too long is a good thing and should not be resisted.
bitcoin, like Satoshi Nakamoto designed it, exists today under the name of BSV. It’s the original protocol restored, representing the truth: we’ve only ever needed one blockchain, and all the others are either useless or outright scams.
Chico is almost there. It is only a few steps away from realizing what we at CoinGeek have been saying for years; “crypto” is disappearing, few blockchains will be left standing, and the original Bitcoin, Satoshi’s peer-to-peer electronic payment system, which is all we ever needed, will be the one that will flourish. Obviously people are starting to wake up and pick up the pieces. This will only accelerate in the months and years to come.
To followThe CoinGeek Crypto Crime Cartelseries, which plunges into the flow of groups – ofBitMEXtoBinance,bitcoin.com,Blockstream,Metamorphose,Coinbase,Ripple,
Ethereum,FTXandAttached– who co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) market players.
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