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Grayscale Trust Falls Victim to Phishing Scam, Crypto Investors Beware

News
Wed, 06/24/2020 - 10:35
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Vladislav Sopov
Typically, every overhyped blockchain-related product draws the attention of blatant scammers. Investors have unveiled a phishing attempt by Grayscale impersonators
Grayscale Trust Falls Victim to Phishing Scam, Crypto Investors Beware
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Seasoned cryptocurrencies investor Ryan Sean Adams, founder of the Mythos Capital investment fund, announced that he received a very strange letter. It turns, he is not the only one.

Suspicious exception for fat cats

According to a screenshot of a letter shared by Mr. Adams in a tweet, fraudsters are impersonating Michael Sonnenshein, managing director of Grayscale Investments. The fake 'Sonnenshein' is asking for feedback on Grayscale's products and offering two programs.

Ryan Sean Adams reveals scammers' letter
Image via Twitter

This scam can hardly be called well-designed. First of all, the impersonators use a 'Graysceal' domain instead of 'Grayscale', which is a very old strategy. Secondly, the letter is full of grammatical errors and looks like it was written in a rush.

Furthermore, the logic of the letter is broken: the author offers two of the most popular Grayscale products after asking whether they are 'useful'.

Finally, the scammers try to lure in gullible addressees claiming that Grayscale can raise funds even from unqualified investors 'on an exceptional basis', hinting at the large investments required for this shady 'exception'.

The letter contains two backlinks and asks for an answer so it is highly likely that it may steal personal financial information.

Controversial newsmaker

The activity of Grayscale Investments which offers benefits from cryptocurrency market volatility without owning crypto tokens raised many concerns among investor and analytic communities.

Their most popular product, Grayscale Investments Ethereum Trust (ETHE), sells stocks of an Ether-pegged trust with an enormous premium. As highlighted by ex-Messari analyst Qiao Wang, this method has no benefits in terms of liquidity influx or taxation regime.

Also, he unveiled that the Grayscale Bitcoin Trust (GBTC) lacks a redemption function, which is very suspicious. Without a prominent redemption instrument, the investors of GBTC are just sponsors of the Grayscale team, Mr. Wang concluded.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Contents

Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)