Posted on

Grayscale Adds Zcash Offshoot ZenCash to Crypto Investment List

Grayscale Investments has invested in ZenCash, a little-known, privacy-focused cryptocurrency.

Speaking at the Stocktoberfest East conference in New York City, Grayscale founder Barry Silbert – who also founded Grayscale’s parent company, Digital Currency Group – asked audience members to raise their hands if they owned offshore bank accounts.

“There is approximately 10 percent of the world’s wealth held in offshore bank accounts,” he said after some of the audience members raised their hands, adding:

“I believe that financial privacy is going to become a really, really important thing not just in emerging markets, but in the U.S. as well.”

For this reason, Silbert said, privacy coins were one of Grayscale’s primary focuses. That category includes zcash, a prominent privacy coin that Grayscale has previously revealed a stake in, as well the lesser-known ZenCash, which is a fork of a fork – via ZClassic – of zcash.

“I love the team,” Silbert said of ZenCash Wednesday, “I love the vision, and the community that we’ve gotten to know is incredibly passionate.”

He explained that the privacy coin is “broader” than its grandparent zcash, referring to its support for messaging and media applications.

Silbert said that ZenCash formed part of Grayscale’s “conviction list,” meaning that the firm has “meaningful dollars in a token.”

Despite his enthusiasm for certain digital assets, however, Silbert made it clear that the space as a whole is rife with soon-to-be flops.

“Most of the tokens are going to zero,” he said.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group.

Lotus image via Shutterstock.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

Digital Currency Group Adds Zcash Offshoot ZenCash to Crypto Investment List

Digital Currency Group has added ZenCash, a little-known, privacy-focused coin, to its “conviction list” of cryptocurrencies. The other coins on the list are bitcoin, ethereum classic, zcash and Decentraland.

Speaking at the Stocktoberfest East conference in New York City, Digital Currency Group founder and CEO Barry Silbert asked audience members to raise their hands if they owned offshore bank accounts.

“There is approximately 10 percent of the world’s wealth held in offshore bank accounts,” he said after some of the audience members raised their hands, adding:

“I believe that financial privacy is going to become a really, really important thing not just in emerging markets, but in the U.S. as well.”

For this reason, Silbert said, privacy coins were one of Digital Currency Group’s primary focuses. That category includes the relatively prominent zcash, of which the lesser-known ZenCash is a fork of a fork – via ZClassic.

“I love the team,” Silbert said of ZenCash Wednesday, “I love the vision, and the community that we’ve gotten to know is incredibly passionate.”

He explained that the privacy coin is “broader” than its grandparent zcash, referring to its support for messaging and media applications.

Silbert said that ZenCash formed part of Digital Currency Group’s “conviction list,” meaning that the firm has “meaningful dollars in a token.”

Despite his enthusiasm for certain digital assets, however, Silbert made it clear that the space as a whole is rife with soon-to-be flops.

“Most of the tokens are going to zero,” he said.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group.

Lotus image via Shutterstock.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

Digital Currency Group Invests in Bitcoin-Friendly Silvergate Bank

Cryptocurrency venture capital firm Digital Currency Group (DCG) has confirmed an investment in Silvergate Capital Corporation, the holding company of the bitcoin startup-friendly Silvergate Bank.

According to an announcement from Silvergate, the firm said Monday that it sold 9.5 million shares through a private placement generating $114 million in total – funds that will be used to further support the bank’s fintech deposit initiatives.

Although the announcement did not disclosed any investors, Barry Silbert, founder of DCG, confirmed the firm’s participation in the sale via an email to CoinDesk, following an official tweet.

While the amount of investment remains unknown, the move by DCG is notable given Silvergate’s known stance in supporting cryptocurrency startups.

As early as in 2014, the cryptocurrency industry has encountered challenges in receiving banking services from traditional financial institutions, with many banks refusing to open accounts for crypto firms, or abruptly closing accounts without explanation.

Silvergate Bank, however, offered bank accounts to bitcoin startups, even while others shied away from bitcoin-related clients due to risk concerns.

According to a previous CoinDesk article, Silvergate Bank was supporting 15 cryptocurrency startups as of May 2016.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Silvergate Bank.

Dollars image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.