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FTX crash has been disastrous for each and every person involved in the crypto space, FTX users got impacted directly and others felt the heat indirectly as it pulled the entire crypto space down, and created a fearful sentiment among retail as well as institutional investors. But on the way to justice, SBF the former CEO and founder of FTX and its sister company Alameda Research got arrested and then got bail for $250 Million. And now the further process has begun. And the Grayscale Ethereum Trust, one of the largest in the crypto space which lets institutional investors a way to in-directly invest in Ethereum without considering the legal aspects, is on hot sale! We will check these two pieces of news in today’s Crypto Bulletin.
1. SBF Pleads NOT GUILTY for Fraud
Sam Bankman-Fried, the former CEO pleads ‘not guilty’ for the fraud charges he is facing. Some of the main charges on him are wire fraud, money laundering, defrauding investors, and transferring FTX’s user funds to Alameda Research without their consent and using them for personal leisure. The interesting part is, previously SBF admitted his mistake publicly on Twitter but he does not think he is liable for the criminal charges. I am not completely aware of the works of the judicial system, especially in the US but even ‘mistakes’ at this large scale should be punishable, but we never know what judicial loophole comes into the picture and helps in getting out of this.
Another important thing to take into consideration is that the other two people Caroline Ellison (CEO of Alameda Research) and Gary Wang (co-founder of FTX) already pleaded guilty and are cooperating in the investigation. It will be interesting to see what happens to SBF if they testify against him in the hearing. The court announced the probable hearing date in October, so long time to change the statements and shift things upside down. But if SBF loses this case then according to the legal experts he could face over 100 years in prison. Share your opinion/view on the SBF in the comments.
2. Grayscale Ethereum at a 60% Discount Rate!
Grayscale is one of the largest trust funds for various cryptocurrencies which lets institutional investors invest in cryptocurrencies without looking into legal aspects of the crypto space. Initially, it was supposed that there will be huge demand from institutional investors but since its inception, almost each and every fund is trading at a record discounted rate. A grayscale trust fund has blue chip cryptos like Bitcoin and Ethereum as well as some major altcoins like BitcoinCash and Filecoin.
ycharts/Grayscale EthereumAs you can see in the above chart, currently Ethereum Fund is currently trading at ~60% discounted rate. The discounted rate means that the fund is trading 60% lower than what Ethereum is actually trading in the open market. For example, if a thing is trading at $100 in the open market, with the 60% discount rate, you can buy it at $40 in the trust fund, isn’t that awesome?
Hope you found this article informative and get updated about what’s going on in the crypto space, if yes then do follow me at PUBLISH0X @CryptoManthan for more content.
Thanks for reading!
