Winklevosses' Gemini Delays Withdrawals on Lending Program (bloomberg.com) 28
Gemini Trust, the cryptocurrency platform run by Tyler and Cameron Winklevoss, said redemptions by customers for its Earn program are being delayed after its partner in the product, Genesis Global, paused withdrawals on its borrowing platform amid a liquidity crunch. From a report: Genesis is one of the main borrowers of Gemini Earn, a product used to generate yields for its customers, according to Gemini Earn's website. Gemini is working with Genesis to allow users to redeem funds as 'quickly as possible.' The delay doesn't impact any other Gemini products and services, the New York-based firm said in a statement.
"The past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the Earn program SLA will not be met, but we are encouraged by Genesis' and its parent company Digital Currency Group's commitment to doing everything in their power to fulfill their obligations to customers under the Earn program," the statement said. Genesis suspended lending withdrawals, as the spectacular collapse of crypto exchange FTX shocked the digital-asset industry. The firm said it has hired advisers to explore all possible options, including new funding, and will deliver a plan for its lending business next week. Genesis' lending business had previously been affected by its exposure to bankrupt crypto hedge fund Three Arrows Capital. Trading and other services at Genesis remain operational.
"The past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the Earn program SLA will not be met, but we are encouraged by Genesis' and its parent company Digital Currency Group's commitment to doing everything in their power to fulfill their obligations to customers under the Earn program," the statement said. Genesis suspended lending withdrawals, as the spectacular collapse of crypto exchange FTX shocked the digital-asset industry. The firm said it has hired advisers to explore all possible options, including new funding, and will deliver a plan for its lending business next week. Genesis' lending business had previously been affected by its exposure to bankrupt crypto hedge fund Three Arrows Capital. Trading and other services at Genesis remain operational.
Yup (Score:5, Interesting)
Re: Yup (Score:2)
Re:Yup (Score:5, Insightful)
With any luck, the "something new" is an orange jumpsuit behind bars.
But hey, our new bankrupt bro was able to slide in tens of millions in political contributions just under the wire before FTX imploded. Pardons aren't free, dontcha know.
Re: (Score:2)
Yeah looks like SBF made $37 million in contributions, mostly to Democratic candidates. Aside from the partisan snark, what is interesting to me is:
1.) A good chunk of the money went to losing candidates, so he judgment in politics was nearly as bad as that of business acumen
and more importantly
2.) His $37 million dollars made him the second highest donor to the democratic party ** It's insane to me the leveraging of political money. For an economy of $23 trillion dollars, including over $6 trillion in g
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I am not going to be surprised if I see this morph into something else to keep people buying in the dip. Either e-dollars get pushed on us and a cashless society (which is of course coupled with a negative interest rate, so people get a 1-2 punch of inflation and money going from their accounts), or we see countries using cryptocurrency as an end-run around sanctions with many countries that are playing both sides doing the "wink, wink, nudge, nudge" game and quietly exchanging cryptocurrencies for goods o
Re: (Score:2)
I hope by this point, everyone understands that "pausing withdrawals" means, "The money is gone and you'll never get it back."
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It's insane. Until I searched, I didn't realize just how many of these stories there'd b
Re: (Score:2)
t's insane. Until I searched, I didn't realize just how many of these stories there'd been. Every time they say they're "pausing withdrawals", as if it were just temporary and everything would be back to normal in a few days. Do they seriously expect anyone to still believe that?
This bears some similarity to the Bank Runs that occurred at the beginning of the Great Depression. Fortunately this mostly affects the marks of the grift.
Greed. Plain and simple greed. Humans have a remarkable ability to suspend disbelief and enter a credulous state. It can be innocent and fun when say watching a movie. But it can be destructive when grifters take advantage of it, targeting greed.
This is a personal experience coming just as an analysis and comparison:
Back in the 1980's a co worker'
Bitlicense (Score:5, Insightful)
Remember when the State of New York chased out all the crypto startups that couldn't afford a hundred grand for a Bitlicense?
The NY Superintendent's job was to ensure these businesses had fiscal integrity, which was the explicit reason for the Bitlicense. So customers couldn't get screwed by scams and Ponzi schemes.
Re: (Score:2, Interesting)
Remember when the State of New York chased out all the crypto startups that couldn't afford a hundred grand for a Bitlicense?
The NY Superintendent's job was to ensure these businesses had fiscal integrity, which was the explicit reason for the Bitlicense. So customers couldn't get screwed by scams and Ponzi schemes.
LOL, no. It being NY, the stuperintendent's job was to shake down emerging new businesses, in typical NY fashion. They could lack integrity all they wanted to, so long as the state got their cut.
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LOL, no. It being NY, the stuperintendent's job was to shake down emerging new businesses, in typical NY fashion. They could lack integrity all they wanted to, so long as the state got their cut.
Yeah. NY State produced 2 Trillion with a T in q2 of 2022. It is nigh impossible to make money here.
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They gave one to FTX so it seems it was more a shakedown than an actual attempt at fiscal integrity.
https://cointelegraph.com/news... [cointelegraph.com]
... stressful time for our industry (Score:4, Insightful)
Re: (Score:2)
Nothing of value is created
That's not true - we're creating plenty of CO2 in the mining process
Why wont someone think of (Score:1)
At least video cards can be had again (Score:5, Funny)
The best thing about the Crypto collapse, aside from a bunch of fools being parted from their money, is that I can actually buy a video card again.
Re: (Score:3)
And you can get used ones for cheap. Used ones that you can actually buy sensibly since most miners didn't over- but underclock their gear because it gets them more coins for the W/h.
Re:At least video cards can be had again (Score:4, Interesting)
Is there a specific marketplace or place to look for these? I keep seeing people talking about super cheap used cards but looking at the traditional places like eBay, CL, FB Marketplace, etc don't really seem to have any especially good deals on anything other than the lower-end cards. Or whole mining rigs, which I certainly don't need. Or were those cards what the miners mostly used? I haven't kept up with mining since things like ASIC and large scale.
Re: (Score:2)
The mining bros seem to be trying to sell their mining crap en bloc, which means the cards will eventually end up with the scalpers again.
But at least it will give us cheaper cards in the long run. No luck so far, though.
Algorithm vs. Paper (Score:3)
I bet (Score:1)
Wonder Twin Powers... deactivated (Score:2)
Next step (Score:1)
Dammit... (Score:2)
I still need crypto.com for my crypto exchange failure BINGO card. Maybe next time.
Not liquidity. Itâ(TM)s insolvency. (Score:3)
All these guys having âoeliquidityâ issues are using the wrong word.
A liquidity crisis is one where theyâ(TM)ve got good assets, but no cash, or some bonafide crypto to pay out. They just need some way to turn their long assets into short term ones to meet demand.
Iâ(TM)m betting that the market value of whatever theyâ(TM)ve got long on their balance sheet (if they have such a thing) is 0, or pretty close to it.
Thatâ(TM)s not illiquidity. Thatâ(TM)s insolvency. Bankrupt. kaput. Someone turn the lights out on the way out the door.
The deception is interesting (Score:2)
redemptions are delayed, it says, by a "a liquidity crunch." This seems designed to continue to encourage the individual victims to think these entities are like banks, when they are decidedly NOT. Here's what I mean:
Traditional banks accept deposits from account holders and agree to provide certain things, like interest payments and check processing. They then take SOME PORTION of the money and lend it out to other people at a higher interest rate with the bank living off of the margins. With this model, a
What now? (Score:2)
I realise I'm not the sharpest tool in the shed, but I'm not the dullest, either. Coming in from an outsider's perspective, I didn't understand a single word that was written in TFS.
That is how I know it's a scam.
Prove me wrong.