DCG CEO Barry Silbert Believes Most Altcoins ‘Will Go to Zero’

Siamak Masnavi

On Wednesday (February 13th), Barry Silbert, the founder and CEO of incubator and crypto-focused venture capital firm Digital Currency Group (DCG) said in a phone interview with CNBC that he believed that most "digital tokens" would "go to zero".

Former investment banker Silbert is one of the earliest and most active investors in the crypto space. DCG, the company he founded in 2015, says that it is "building and supporting the largest early stage investment portfolio in the digital currency and blockchain ecosystem," backing 110 crypto-related businesses in 30 countries. Its portfolio includes some of the biggest names in the crypto space, including Abra, BitPay, BitPesa, Blockchain, Blockstream, Brave, Chainalysis, Circle, Coinbase, Kraken, Ledger, Ripple, and Xapo. 

Silbert's latest comments regarding cryptoassets came during a phone interview with CNBC:

"I'm not a believer in the vast majority of digital tokens and believe most will go to zero... Almost every ICO was just an attempt to raise money but there was no use for the underlying token. The vast majority of what's out there will be eliminated."

Although Bitcoin (BTC) has fallen over 81% since reaching its all-time high in December 2017, Silbert, who started investing in Bitcoin in 2012, says he remains "as bullish as he has ever been" on Bitcoin, feeling confident that it has "won the race to be digital gold." He believes that millennials do not share their parents' faith in gold, and a lot of the gold they inherit will get converted to Bitcoin as a hedge:

"I'm convinced that whatever money is in gold is not going to stay in gold. That gets handed down to millennials -- I'm highly confident a lot of that will go into bitcoin."

He also thinks now that the infrastructure needed by institutional investors is being built, it is likely that more of them will consider investing in Bitcoin, and that if/when they do, the Bitcoin price will "snap back hard."

On 18 July 2018, the DCG CEO said in an interview with CNBC's "Fast Money" that DCG had invested money in only five cryptocurrencies, and that he thought 99% of cryptocurrencies would eventually go to zero:

"I am hoping that the movement of Wall Street into this asset class, which will bring a more fundamental valuation approach to this asset class... There's thousands of them out there. There's only five that we like. There's only five that we have money in. The other 99%, I think, are going to zero."

So, what were these five cryptocurrencies that DCG likes so much?

"So, we have 50% in Bitcoin, 25% in Ethereum Classic, 15% in Zcash, 5% in Decentraland, and our newest one is 5% in ZenCash.

 

Featured Image Credit: Photo via Pexels.com

Hacked Exchange Cryptopia Enables Trading in 40 Different Currency Pairs

New Zealand-based digital asset exchange, Cryptopia has reportedly resumed trading on its exchange as it is now allowing 40 different trading pairs. This, after Cryptopia recently experienced from several different security breaches.

Support For Bitcoin, Litecoin, Dogecoin Pairs Added

Cryptopia’s management announced (via Twitter on March 18th) that it is planning to expand its list of coins which will again be supported on its trading platform. As noted on Cryptopia’s official support website, the exchange has enabled several different trading pairs (as of March 19th, 2019) with major cryptocurrencies. These include bitcoin (BTC), litecoin (LTC), and dogecoin (DOGE).

In response to Cryptopia’s announcement, Twitter user @dgb-chilling, a supporter of DigiByte (DGB), a cryptocurrency that uses five different mining algorithms, said that he had emailed the exchange’s support team to inform them regarding the coin’s latest update (version 6.17.2). He added that “an upgrade was recommended but not mandatory.”

Meanwhile, Chuck Norris (@CryptoTweet6) remarked: 

Now this is good news! Let’s hope the rest of the coins will be released for trading swiftly.

Other users also considered it “good news” that the compromised cryptoasset exchange was gradually resuming its operations. However, one social media user asked when Cryptopia would start enabling deposits while another inquired about why his ARK coins were still not recoverable from the trading platform. He claimed that he had deposited 1,000 ARK, currently valued at around $628, (a popular proof-of-stake based coin) on Cryptopia. The user also complained that his coins were missing “missing because [the exchange] did not update the ARK wallet."

Tens Of Millions Of Dollars Stolen In Hack

On February 27th, 2019, Cryptopia’s management announced that it was “assessing the impact incurred as a result of the hack” which led to the theft of tens of millions of dollars in cryptocurrency. Last month, Cryptopia’s support team had also estimated that the total loss incurred due to the security breaches was of around 10% of its total holdings (in the worst-case scenario).

Notably, the exchange’s official Twitter account had been silent for several weeks (since Feburary 14th). However, it released several announcements, starting in late February, in which it revealed that its staff members were working on securing each customer’s account individually. Cryptopia’s management also noted that it was taking the appropriate measures to ensure that its trading platform is secure when it is officially back online.