- Gemini had to deal with a number of setbacks and regulatory obstacles last year.
- The exchange made many tries, but the investors still couldn’t come to terms.
Now that Gemini Trust Co.’s wealthy founders, Tyler and Cameron Winklevoss, have invested their own money in the struggling cryptocurrency exchange, users have reason to be optimistic. As a result of the year-long bear market for cryptocurrencies, Gemini has had to deal with a number of setbacks and regulatory obstacles.
Bloomberg cites anonymous sources in reporting that the twins, who became well known due to the controversial Facebook litigation, recently loaned $100 million to Gemini.
In the months before, Gemini reportedly made many informal approaches to outside investors in an attempt to raise financing. The exchange made many tries, but the participants still couldn’t come to terms.
FTX After Effect
Notwithstanding the exchange’s struggles, Gemini has revealed intentions to build a global crypto derivatives exchange that would focus on offering perpetual futures. Due to the substantial risk posed by the lack of an expiry date and the possibility of trading with considerable leverage, this form of a derivative is prohibited in the United States for retail consumers.
In essence, the victims of the tragic fallout of the FTX are the consumers of Gemini Earn, a yield-generating product of the exchange. Genesis Global was just one of several famous crypto firms hit hard by the fallout from FTX’s collapse.
When it came to the Earn lending program, Genesis Global was Gemini’s lone partner. Genesis stopped client withdrawals in November due to the FTX issue, turning what had been a fruitful collaboration sour. As a result, Gemini had to stop allowing withdrawals from Earn accounts, which upset many users.
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