Gemini Earn is another major blow in the crypto CEX.
The announcement was made this early morning about the withdrawal halt on the Gemini Earn program.
https://twitter.com/lawmaster/status/1592870524941922305
Gemini is one of the early crypto venture businesses that had large sums of Bitcoin in the early days.
It got a reputation because it provided services to institutional investors rather than retail investors at the beginning of the early days of the crypto business.
The Earn program halt of withdrawal is a major blow of their reputation because not only will people leave the app and remove all their crypto whether they will back out of service or not.
https://twitter.com/JasonYanowitz/status/1592917789898989568
Part of the problem of Earn program is from Genesis Trading Firm. They are focusing on institutional investors. How come such a professional firm goes down quickly? Because of the failure investments on both 3AC and FTX.
https://twitter.com/GenesisTrading/status/1592867198900768769
But more importantly, they are owned by DCG or Digital Currency Group which is also owned the Grayscale.
https://twitter.com/lookonchain/status/1592945259314819072
https://twitter.com/Grayscale/status/1592882142169944065
They had 6 ETFs: the Bitcoin Cash, the Grayscale Bitcoin Trust, the Grayscale Ethereum Trust, the Grayscale Ethereum Classic Trust, the Grayscale Digital Large Cap Fund, and the Grayscale Litecoin Trust.
If they are going down, everything is down and will drag institutional investors and the traditional market.
The question is not if they would fail but what will be the consequence of failing.
Unlike the traditional market with the Fed backup to prevent failure, the crypto market is due to free fall.
Crypto lending is a scam after all and CEX lending just exposes its weakness.
If FTX blow is a major blow, Genesis insolvency will be bigger than FTX. It pretty much can end the CEX in the US.
Regulations and licensing are nothing to prevent the fall of these companies and their greed from attracting more customers' funds and wasting on unsuccessful investments like 3AC and FTX.
It will mark the end of the crypto adoption and institutional investments in the crypto space.
https://twitter.com/concodanomics/status/1592945547425378304
At the end, we are all part of their yield!
If you think FTX collapse is an earthquake, wait until the collapse of DCG...
https://twitter.com/adamscochran/status/1593020859156865026
And more interestingly, you may not able to find any insight stories about DCG because the majority of publications of crypto is owned by ... DCG...
FTX failure is because of their PR ...
https://twitter.com/Tree_of_Alpha/status/1592865447640453122
Wink wink...
