Summary: Coinbase’s custodial department supported Grayscale’s attention to digital assets. The crypto exchange did not release each product’s associated wallet addresses. The Bitcoin trust wallet addresses and other products that were published after Genesis revealed FTX exposure. Coinbase Custody supported Grayscale’s product breakdown over the weekend to answer questions about the firm’s digital asset offerings. The company has now released a product breakdown that Coinbase Custody has confirmed.

  

Summary:
Coinbase’s custodial department supported Grayscale’s digital asset product focus. However, the crypto exchange didn’t release the associated wallet addresses for any product. The crypto community wallet addresses of Genesis’ Bitcoin trust and other products revealed FTX exposure. Coinbase Custody supported Grayscale’s product breakdown over the weekend, amid user questions about the firm’s digital asset offerings.
The company released a product breakdown, which Coinbase Custody confirmed. However, wallet addresses were withheld due to security concerns. Instead, the entity assured users their assets were safe and said that Coinbase conducts regular checks on the chain to protect the underlying cryptocurrency of each product offering.

7) While we know that the above point will disappoint some, panic caused by others is not enough to bypass complex security arrangements that have protected our investors’ assets for years.
Both Grayscale and Coinbase issued statements that received mixed reactions. This was due to skepticism because multiple centralized entities such as FTX, Terra and Three Arrows Capital have taken billions out of crypto portfolios.
Participants also pointed out that Grayscale controls 3.3% of Bitcoin’s market capital, which is roughly 635,235 BTC, or more than $10 billion at today’s price. The Luna Foundation Guard (LFG), which held approximately 80,000 BTC, was responsible for Terra’s implosion.
Grayscale Hold 635K Bitcoin Trust Discount eyes 50%
Grayscale’s Bitcoin Trust offering was discounted further amid the unravelling FTX contagion. According to TradingView data, the GBTC discount was close at 50% at press time and Bitcoin (BTC spot price traded at around $16,000).
Participants also pointed out that the trust holds 3.3% of Bitcoin’s market capital, which is roughly 635,235 BTC, or over $10 billion at today’s price. The Luna Foundation Guard (LFG), which held approximately 80,000 BTC, was in place prior to Terra’s implosion.
Analysts expect a 46% drop in the company’s value to $8,900 if it is forced to sell its BTC holdings like the LFG did to defend TerraUSD.