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Odaily Translator | Nian Yin Si Tang
Summary:
Summary:
- DCG invested in Decentraland, while its leaders lent money to DCG subsidiary Genesis Global, which filed for bankruptcy protection this week.
- Genesis appears to owe Decentraland founders and a key executive tens of millions of dollars.
In the case of Decentraland, its relationship with lead investor Digital Currency Group (DCG) became more complicated this week — as previously reportedsaysay
, Decentraland leadership appears to have lent tens of millions of dollars to Genesis Global, a cryptocurrency lender owned by DCG.
DCG, which is run by CEO Barry Silbert and owns Genesis, not only invested in Decentraland, but also became one of the largest virtual landowners in Decentraland. Additionally, Grayscale, also owned by DCG, has simultaneously raised funds for an investment vehicle called the Decentraland Trust, which allows investors to passively invest in the Metaverse platform’s native digital currency, MANA.
While none of this necessarily constitutes malfeasance, and could boil down to a simple case of entrepreneurs seeking a lucrative financial return, Genesis’ bankruptcy filing discloses that Decentraland’s founders lent funds to DCG-owned lending firms, which in turn At the time, the crypto world was plagued by a near-constant stream of negative news, filled with stories of corruption and mixed interests.
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Genesis bankruptcy reveals connection to Decentraland
Genesis Global filed for Chapter 11 bankruptcy on Thursday and released a list of the 50 largest non-internal entities with unsecured claims. Among the 50 creditors listed are companies linked to Decentraland co-founders Esteban Ordano and Ari Meilich, as well as chief financial officer Santiago Esponda.
Esponda’s name emerged because his Decentraland email address was listed in court filings as a contact for Heliva International, a Panama-based company to which Genesis owes $55 million. Ordano, who is now an advisor to Decentraland, was listed as an associate in Genesis’ bankruptcy filing for an entity called Winah Securities. Genesis owes Winah Securities about $27 million.
Winah and Heliva are located on the same floor in the same building in Panama.
Ordano told The Block that Winah has nothing to do with Decentraland. Meilich declined to comment. Esponda did not immediately respond to a request for comment for this story.
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In late 2021, as New Year's Eve festivities approach, DCGAnnounceAnnounce
Plan to create a "One Time Square" in Decentraland. DCG said it plans to host a metaverse party at the new space located in the virtual world, "featuring music and entertainment, a rooftop VIP lounge, CryptoArt gallery, and immersive games." In the same statement, DCG also claimed to be "One of the largest owners of digital real estate" inside Decentraland.
Manu Araoz first created Decentraland in 2017. Afterwards, Araoz and co-founders Ordano and Meilich helped build the virtual world's first outpost, which they named Genesis City.Along with The Sandbox, Decentraland is considered one of the higher-profile platforms in the emerging metaverse. JPMorgan Chase even rode the craze, last year in Decentraland。
Decentraland was valued at more than $1 billion at the end of last year despite reports of low usage and a protracted crypto bear market that sent digital asset prices tumbling.
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Grayscale’s interest in DecentralandSilbert has been publicly promoting Decentraland online since 2018. May 2020, Silbert and Genesis CEO Michael MoroTake a video tour of the virtual world
Then in February 2021, DCG subsidiary Grayscaleroll outroll out
The so-called Decentraland Trust. The intention, Grayscale said, is for the trust to “invest only passively in MANA.”
Grayscale said doing so would allow investors to “gain investment exposure to MANA in the form of a security while avoiding the challenges of purchasing, storing and hosting MANA directly.”
MANA is an "ERC-20 token that acts as Decentraland's native cryptocurrency and acts as a unit of account for users to pay for goods, services, and LAND (lots of land)," Grayscale said in a 14-page investor note in March 2021. demoAnnounce。
The presentation also included some artwork, including a screenshot showing six colorful avatars standing in a virtual world with the caption: "This is a photo of the DCG team listening to music in Decentraland."
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Screenshot from Grayscale presentation
