{"id":528533,"date":"2022-12-17T12:51:00","date_gmt":"2022-12-17T09:51:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitvavo-to-prefund-locked-dcg-assets-worth-296-7m-amid-liquidity-crisis\/"},"modified":"2022-12-17T12:51:00","modified_gmt":"2022-12-17T09:51:00","slug":"bitvavo-to-prefund-locked-dcg-assets-worth-296-7m-amid-liquidity-crisis","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitvavo-to-prefund-locked-dcg-assets-worth-296-7m-amid-liquidity-crisis\/","title":{"rendered":"# Bitvavo to prefund locked DCG assets worth $296.7M amid liquidity crisis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a407e3447f76\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a407e3447f76\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitvavo-to-prefund-locked-dcg-assets-worth-296-7m-amid-liquidity-crisis\/#%E2%80%9D_Bitvavo_to_prefund_locked_DCG_assets_worth_2967M_amid_liquidity_crisis_%E2%80%9C\" >&#8221; Bitvavo to prefund locked DCG assets worth $296.7M amid liquidity crisis &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitvavo_to_prefund_locked_DCG_assets_worth_2967M_amid_liquidity_crisis_%E2%80%9C\"><\/span>&#8221; Bitvavo to prefund locked DCG assets worth $296.7M amid liquidity crisis &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvOWE3NDRjZjQtN2UzZi00ZTgyLTkwNzgtNGRhMTZjZTllMzNiLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-30a6cf80>The Digital Currency Group and its affiliates (DCG), which manages $296.7 million (280 million euros) in deposits and digital assets of crypto exchange Bitvavo for off-chain staking services, suspended repayments citing liquidity problems amid the bear market. However, Bitvavo announced to prefund the locked assets, preventing DCG-induced service disruption for users.<\/p>\n<p>With users proactively exploring self-custody options as a means to safeguard their funds, an acute liquidity crisis is expected to loom over exchanges. DCG cited liquidity problems as it suspended repayments, temporarily halting users from withdrawing their funds. Bitvavo, on the other hand, decided to prefund the locked assets to ensure that none of its users are exposed to DCG liquidity issues.<\/p>\n<p>\u201cThe current situation at DCG does not have any impact on the Bitvavo platform,\u201d read the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.bitvavo.com\/response-bitvavo-to-situation-dcg\/\" data-amp=\"https:\/\/blog-bitvavo-com.cdn.ampproject.org\/c\/s\/blog.bitvavo.com\/response-bitvavo-to-situation-dcg\/amp\/\">announcement<\/a> as the company guaranteed no service disruption to its users. According to Bitvavo, DCG intends to share a plan for reimbursing the outstanding deposits over time. <\/p>\n<p>Moreover, Bitvavo maintains that DCG\u2019s debt will have no negative impact on its day-to-day operations as the company \u201chas been making a profit since its inception and is in a financially solid position.\u201d The company further reassured the status quo even if DCG failed to keep their end of the bargain up.<\/p>\n<p>Bitvavo manages nearly $1.7 billion (1.6 billion euros) in deposits and digital assets, which are held 1:1 and fully redeemable by the users.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin takes liquidity near $17K as US dollar shows weakness pre-CPI<\/em><\/strong><\/p>\n<p>Owing to the massive outflow of funds from exchanges, Binance \u2014 the crypto exchange with the highest trading volume \u2014 suffered from a decline in liquidity. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Binance Netflow 7D ($) -3,660,311,347<\/p>\n<p>8,783,380,428 &#8211; Outflow<br \/>5,123,069,081 &#8211; Inflow<\/p>\n<p>Exchange Flows dashboard \u2935\ufe0f<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CYrBQLryQ0\">https:\/\/t.co\/CYrBQLryQ0<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/vV6vcqoWKK\">pic.twitter.com\/vV6vcqoWKK<\/a><\/p>\n<p>\u2014 Nansen  (@nansen_ai) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nansen_ai\/status\/1602677725218492416?ref_src=twsrc%5Etfw\">December 13, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Nansen technician Andrew Thurman, the drop in liquidity may have been partially caused by large market makers exiting the exchange.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitvavo-to-prefund-locked-dcg-assets-worth-296-7m-amid-liquidity-crisis\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitvavo to prefund locked DCG assets worth $296.7M amid liquidity crisis &#8220; The Digital Currency Group and its affiliates (DCG), which manages $296.7 million (280 million euros) in deposits and digital assets of crypto exchange Bitvavo for off-chain staking services, suspended repayments citing liquidity problems amid the bear market. However, Bitvavo announced to prefund&#8230;<\/p>\n","protected":false},"author":1,"featured_media":528534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/9a744cf4-7e3f-4e82-9078-4da16ce9e33b.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75719,107545,117,73711],"class_list":["post-528533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-funding","tag-liquidity","tag-business","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/528533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=528533"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/528533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/528534"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=528533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=528533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=528533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}