What you need to know
Why is there a backlash against DATs in the community?
Some members are frightened by their alleged oversupply and VC connections.
What next for DATs
Mid-January’s MSCI Review could determine whether the sector survives.
The digital asset treasuries, or DATs, are once again in the spotlight following MSCI’s threat to exclude them from the index and the current market decline.
SharpLink in particular, one of DATs that focuses on ETH, sold $33.5 Million worth of ETH. This added pressure to an already fragile marketplace.
You can also make another dump DATs have been criticized as being a negative trend since November. “terrible, VC scams with overhangs.”
Hasseb Qureshi is a Dragonfly Partner and he discredited that generalization. DATs, he said, aren’t “net selling pressure” The following are some examples of how to get started: added,
“So DATs may have ran up too large, but the idea that when it’s all said and done, DATs were net bad for crypto prices is obviously wrong.”
Source:
He noted that the DATs would probably begin buying again after improving the mNAVs above 1.
Who’s selling?
Haseeb discusses the SharpLink sell-off and possible pressures from other companies whose mNAVs (crypto holdings values) have fallen below 1. retorted,
“Markets are not moving because of DAT selling. Almost no DATs have sold anything. The ones that have are tiny.”
Forward Industries was formed by some of the most prominent treasury firms in Solana, including MultiCoin Capital.
Some smaller players received support from VCs or the chain foundation or through individual capital raising.
You can read about the history of “VC tokens” VCs are known to lead DATs that have a high level of suspicion.
Crypto-treasuries lose $45 billion
It is worth noting that the DAT’s top leaders include Ethereum [ETH]At least at the time this article was written, BitMine Immersion, Strategy, SOL’s Forward Industries, did not have any record of their selling holdings.
The planned reclassification by the DAT of DATs is also a concern. MSCI index Some analysts believe that the crypto-market and its space may be under more pressure.
In fact, David Bailey referred DAT is a threat to exclusion “Operation ChokePoint 3.0,” Parallels can be drawn with restrictions on banking services imposed by Biden’s administration.
“For a systemically important equity index to single out Bitcoin and digital asset companies for deindexing and ineligibility after years of actively blessing their inclusion is discriminatory and capricious. We should call it what it is: Operation Choke Point 3.0.”
In the fourth quarter, DATs holdings fell from $140 to $97 Billion.
Source: The Block
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Source: ambcrypto.com
