Tide is receding? Filecoin (FIL) plunges over 30% in a single day, rumors circulating about DCG portfolio selling off.

The largest decentralized storage project Filecoin (FIL) experienced a drop of over 30% on the 17th, falling from $4 to $2 at one point, and was at $3 at the time of writing. The Twitter community has various speculations about the reason for the drop, with some attributing it to "everyone finally realizing they can use Google Cloud," but the most noteworthy reason is likely "DCG Group's investment portfolio across the board decline," adding another wave of insecurity towards the DCG Group.

Market Stays Flat, DCG Investment Portfolio Plummets

According to the DCG Group investment portfolio compiled by Messari, on December 17th, apart from FIL plummeting, all other currencies also experienced a decline. Out of a total of 18 entries, only BTC and HNS maintained a decrease of less than 1%.

Continuous Panic News from DCG

Due to the FTX incident, DCG's lending company Genesis has been continuously questioned, with rumors even circulating about DCG shouldering $2.1 billion in bad debts.

Some believe that the decline in this investment portfolio is DCG's way of liquidating its investments, but this cannot be confirmed.

Grayscale FIL Fund Plummets

Looking at Grayscale, a subsidiary of DCG, and their Filecoin Trust product, it has shrunk by 93.07% since its inception, leaving only $419,000 in assets under management.

However, this product is only a commodity of a DCG subsidiary and has a very small scale. The figures displayed only reflect the market interest in the product, and should not affect DCG's operational status or the short-term market price of FIL as a whole.

Actual Usage of Filecoin

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