Billionaire shows $1 million bet on Dogecoin’s downfall
Barry Silbert, the CEO of Digital Currency Group, a multinational company that owns Grayscale – the world’s largest bitcoin manager – is betting $1 million on Dogecoin’s downfall.
“Okay $DOGE peeps, it’s been fun. Welcome to crypto!
But the time has come for you to convert your DOGE to BTC”, tweeted Barry Silbert on Saturday (8).
Okay $DOGE peeps, it's been fun. Welcome to crypto!
But the time has come for you to convert your DOGE to BTC
[disclosure: we've gone short DOGE via https://t.co/s8Qde2Ub4Z]
— Barry Silbert (@BarrySilbert) May 8, 2021
The businessman said he opened a $1 million short position through the DOGEBEAR2021 token, listed on the FTX derivatives exchange.
According to the platform description, this leveraged ERC-20 token “seeks a return that corresponds to -3 times Dogecoin’s daily return”. That is, if the DOGE drops 5%, that token goes up 15%. Through this option, the trader can short without using perpetual contracts or margin trading.
Although this type of negotiation is not allowed for US users, Silbert explained that the position was opened by entities in his conglomerate that are outside the USA.
On the other hand, if it is wrong and the asset reaches $1 by May 31, he will donate $1 million to a charity selected by the DOGE community.
Barry Silbert is part of a group of experts who believe that Dogecoin will fall and bring down the market, impacting even on the price of bitcoin.
With a fortune valued at $1.6 billion, Silbert is on Forbes’ list of the richest men in the industry.