dollars held at a bank in the United States, and the system is insured with pass-through FDIC deposit insurance as a preventative measure against money laundering, theft, and other illicit activities. The number of Gemini dollar tokens in circulation is equal to the number of U.S. The Gemini Dollar is fully backed at a one-to-one ratio with the U.S. Notably, Gemini was the first exchange to apply for and be designated as a New York Trust Company. Gemini has proactively developed its relationship with legal and regulatory bodies in order to foster trust between the traditional financial system and blockchain community. It is subject to New York banking laws and the regulatory authority of the New York State Department of Financial Services (NYDFS). The exchange added that returning its users’ funds is currently the highest priority while also reminding that Genesis was responsible for repaying all assets to users.Gemini secured a New York state charter in 2015 and was one of the first cryptocurrency exchanges to become fully regulated in the United States. The problem remained unsolved, and Gemini announced that it is officially discontinuing its Earn program on Jan. 4, Genesis CEO released a statement saying that the firm is focused on solving the problem, but it needs more time. 3, claiming that Genesis breached its agreement with Gemini Earn users. Gemini Earn users filed a class arbitration suit against Genesis and DCG on Jan. Silbert responded to the open letter soon after it was published, saying that neither he nor DCG has any debt to Genesis. 8 to make up for his debt and therefore resolve Gemini’s liquidity crisis. Cameron Winklevoss gave Silbert time until Jan. 2, Cameron Winklevoss wrote an open letter addressed to Silbert and claimed that Gemini Earn’s liquidity crisis is caused by Genesis, and Genesis is having problems because Sibert owes his subsidiary $1.675 billion. 5, Gemini formed an ad-hoc committee to come up with a solution to the liquidity crisis. The discussions between DCG, Genesis, and Gemini, including DCG’s CEO Barry Silbert and Gemini CEOs Cameron and Tyler Winklevoss, have been continuing since then, and the tension has been climbing daily. It also added that its parent company, Digital Currency Group (DCG), is also doing everything in its power to smooth out the situation. Genesis said it is experiencing abnormal amounts of withdrawal requests which exceed the company’s liquidity. To facilitate these services, Gemini partnered with third-party crypto lenders, including Genesis, which suspended withdrawals for its own customers on Nov. Gemini Earn is a program that allows individual investors to lend their crypto assets to institutional borrowers in exchange for a certain amount of interest. Addressing the users, the exchange said it would try to meet customers’ withdrawal requests as soon as possible. 16, 2022, when Gemini’s Earn program halted withdrawals due to market turmoil. The real chain of events that hurt the community’s trust in Gemini started on Nov. At the time, however, most crypto companies were laying off staff, so Gemini didn’t really stick out. In both decisions, the exchange pointed at the market turmoil and repeated that it had to manage costs. In July 2022, Gemini went for the second round of layoffs and let 15% of its staff go. As soon as the winter market started, Gemini laid off 10% of its staff in June 2022, which marked the exchange’s first layoff decision. The name Gemini has been on the headlines since the Terra-Luna collapse. However, the BUSD volume started to record ups and downs after the FTX disaster and finally recorded a 96% decrease in January 2023, falling from around 260 million to just above 10 million. The BUSD volume on exchanges started to grow exponentially in July 2021 and breached 300 million in May 2022, just before the FTX collapse. The chart below demonstrates the BUSD balance held on exchanges since the beginning of 2019. Since then, active addresses that hold GUSD fell by 91.6% and retreated back to 100 in January 2023.īUSD balance on exchanges also recorded a significant decrease. The number of wallets started to increase at the end of 2020 and reached almost 1200 towards the end of 2021. The chart below represents the active wallet number since the beginning of the year 2019. The number of active addresses that hold GUSD has slumped back to its 2020 levels. Glassnode data analyzed by CryptoSlate shows that the U.S.-based crypto exchange Gemini and its stablecoin Gemini Dollar ( GUSD) are starting to lose followers and the community’s trust as metrics fall to all-time lows.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |