![]() The exchange’s spot trading volume over the past 24 hours was just $32.8 million. Gemini’s main business, its crypto exchange, is meanwhile in danger of fading into irrelevance. The Commodity Futures Trading Commission (CFTC) also filed a suit against the twins for misrepresenting the way their exchange and futures contracts operated back in 2017 when they sought regulatory approval. Now, Gemini’s Earn users are suing Silbert and the Winklevoss twins, alleging that Silbert breached his contract by pausing redemptions, and the Winklevii sold interest-bearing accounts without properly registering them as securities. Winklevoss went on to ask if Silbert would commit to refunding $1.1 billion of what he owes by Jan. “Stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. And just months later, reports surfaced that the firm would need to raise at least $1 billion to stave off bankruptcy for its Gemini Earn platform. ![]() ![]() By June, Gemini was forced to slash 10% of its workforce. In September 2021, during the height of the crypto boom, Cameron Winklevoss even told Fortune that he believed Bitcoin would end the year at $100,000 (it was less than $47,000).īut when prices for cryptocurrencies tanked in 2022, it was a whole new world for Gemini and the Winklevii, and Gemini Earn users were particularly at risk. The Winklevii were confident that cryptocurrency prices would continue to rise, which would enable them to offer high yields to customers consistently through this plan. Gemini lent users’ funds to Genesis, which in turn loaned them out to institutional borrowers. One of the ways Gemini created these returns was through Genesis Global Capital, the lending arm of crypto investment firm Genesis Global Trading, which is owned by Silbert’s Digital Currency Group. ![]() That’s not so difficult in a bull market, but when prices begin to fall, finding a stable return can be a challenge. The only problem for Gemini was that in order to offer high returns to investors, the company needed to make relatively (or definitely) risky bets with their customers’ crypto. “We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade.” Another victim of the Crypto Winter? “Today’s investors know that a smart, diverse portfolio includes crypto-it’s an investment in their future selves,” Tyler Winklevoss said in a press release at the launch. In September 2021, Cameron Winklevoss also told Fortune about one-let’s call it, unique-investment into a startup that was attempting to revive woolly mammoths to combat climate change, saying that he saw the endeavor making money via television ads or “even parks for extinct animals, like Jurassic Park.”Įarlier that year, the Winklevii had launched their most important business yet, Gemini’s Earn platform. The crypto lending service offered juicy returns of “up to 7.4%” for depositing crypto, promising that customers could redeem their funds “at any time.” By comparison, the average savings account in the U.S. Gemini started NFT marketplace Nifty Gateway in 2018, but the platform quickly experienced security issues and was surpassed by the competition before being integrated into Samsung’s NFT platform. The Winklevii became some of the first Bitcoin billionaires during Gemini’s rise.īut as the pair raked in a fortune while crypto fervor grew, they also began leaning into riskier investments. The exchange grew quickly, barring a brief period of turbulence in the 2018 bear market, and developed a reputation as a secure U.S.-based option for crypto investors. “Wall Street’s not in Bitcoin yet, and part of Gemini and the licensing is to get them there,” he explained.
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