Gemini Earn’s funds are stuck up with Genesis since November 16, when the leading lending platform halted the customer withdrawals
After Genesis Global files for bankruptcy, the next move put forth by Gemini would be more eccentric
Gemini, world one of the largest crypto exchanges and the brainchild of the Winklevoss twins is now in deep liquidity trouble. The founders are fighting to get back the customer’s funds held on Genesis, but the recent filing of bankruptcy may make bitter things worse.
However, the founders of Gemini are pretty confident in recovering their stuck-up funds. But, the 2022 history says, the platforms which received more than 60% exposure also filed for bankruptcy in the next few days.
After Terra’s collapse, Celsius Network & 3 Arrow Capital filed for bankruptcy, while BlockFi filed after the collapse of the FTX exchange. So will Gemini move ahead and also file for bankruptcy Or do they have any backup plan?- Let’s have a glance at their reserve!
- Gemini Bitcoin, Ethereum, and stablecoin reserves have declined considerably during 2022. Bitcoin reserves have depleted from 312.6K to 135.9K while Ethereum dropped from 4.12 million to 917.9K and stablecoin reserves slashed from 626.2 million to 64.06 million.
- The ETH reserves dried up mostly due to one of Gemini’s biggest clients moving their ETH into a custody service and stablecoins dropped as Gemini moved most of its GUSD reserves into MakerDAO.
- The on-chain data of Bitcoin flows between exchanges indicated that the Gemini exchange has stopped receiving BTC from other exchanges. This suggests that traders and investors consider Gemini as a less desirable platform to hold their assets
- Besides, the Gemini spot trading volume has been falling since mid of 2021 which peaked at 3.5K just before the market collapsed in May 2021 and reached 0.6K in December 2022.
- Moreover, the BTC/USD pair was also down by more than 58% in December 2022 in annual terms.
Liquidity issues have become pretty common in the crypto space but Gemini users can still withdraw their money from the same Earn program, while it has to be noted that some large users have sued Gemini demanding their money back.
The founder, Cameron Winklevoss in a recent tweet revealed the next course of action to take legal action against DCG (parent company of Genesis) and its CEO Barry Sibert. He also assures his 320K+ Earn users to recover their stuck-up funds and the bankruptcy may make the process a little simpler.
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