The VC firm has come under fire lately for alleged conflicts of interest among its various investments. Digital Currency Group (DCG), a venture capital firm focused on the cryptocurrency market, is facing growing scrutiny from the cryptocurrency community.
Just last week, Ethereum founder Vitalik Buterin blasted CoinDesk, a subsidiary of DCG, for improper journalistic practice. In the blast, Buterin scolded CoinDesk for being complicit in cryptocurrency scams, practicing sensational and gotcha journalism and for overcharging for admission to its annual event, Consensus.
More recently, Steffen Vogt of The Tangler, a popular publication that is independent of the IOTA Foundation, has called for a boycott of DCG for what he deems to be a coordinated misinformation campaign against IOTA. In a series of Tweets, Vogt states that Zooko Wilcox, CEO of Zcash, a notable holding of DCG, has actively worked to spread ‘FUD’ by Tweeting what he calls a “negative yellow press article.” In the article, the author sheds light on the reasoning behind the Centre for Blockchain Technologies (CBT) at University College London (UCL) announcing that it is no longer associated with the IOTA Foundation.
Further adding fuel to the fire is the fact that Grayscale, an investment subsidiary of DCG with a Zcash investment product, liked the Tweet. Controversy has been growing ever since an investigation by researchers from MIT’s Digital Currency Initiative (DCI) found what they believed to be a vulnerability in the project’s code.
“We have found serious cryptographic weaknesses in the cryptographic hash function used by IOTA, Curl. These weaknesses threaten the security of signatures and PoW in IOTA as PoW and Signatures rely on Curl to be pseudo-random and collision resistant.” However, months later, emails between IOTA and DCI were leaked, seemingly showing that DCI’s findings are not as crucial as the research group had first emphasized. Read more from sludgefeed.com…
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