The anonymous sources revealed that the loan came after Gemini failed to collect external financial support.
The Winklevoss twins, Tyler and Cameron, have offered to help cryptocurrency exchange Gemini by lending the company $100 million as the market continues to slump. The growing uncertainty in the cryptocurrency industry is no longer news, with many losing their investments. Apart from investors, a lot of traders and cryptocurrency companies also recorded heavy losses amid the market downturn. The unexpected fall of some cryptocurrencies also sparked more concerns among members of the cryptocurrency community, leading to further declines.
Like many other cryptocurrency exchanges, Gemini has suffered setbacks as the digital asset market plunged. The company has to shed 10% of its workforce in January, which marks the third round of layoffs in eight months. At the time, the founders cited “turbulent market conditions” as the reason for firing employees. The first round of job cuts was in June 2022, when Gemini laid off about 1,100 employees. Soon after, the company reduced its headcount by another 7%.
Tyler and Cameron Winklevoss borrow $100 million from Gemini
However, the owners of the company decided to step in by dipping into their own pockets. according to People are aware of the issueThe Winklevoss twins loan Gemini $100 million. The anonymous sources revealed that the loan came after the company failed to collect external financial support. The stock exchange has tried to seek financial investments from outside individuals during the past months. However, all efforts were in vain.
Crypto startups have had a hard time finding funds since the dramatic collapse of FTX. Investors are keeping their money out of the declining cryptocurrency industry, which has seen consistent big losses in the past year. Data from research firm PitchBook shows that venture funding for crypto startups fell 80% year-on-year to $2.4 billion in the first quarter of 2023.
The demise of FTX bankrupted Genesis Global, which also hit Gemini as Genesis and Gemini were partners. Genesis Global was Gemini’s sole partner in its Earn lending product, which affected Gemini Earn accounts. When Genesis had to freeze withdrawals in November 2022, Gemini also had to halt refunds on Earn accounts. This caused the customers’ $900 million in funds to stall, leading to a heated argument between the Winklevoss brothers and Barry Silbert, CEO of Genesis’s Digital Currency Group.
The whole thing got worse when the Gemini and Genesis were sued by the US Securities and Exchange Commission. The watchdog alleged that Earn’s product violated securities laws. The Commodity Futures Trading Commission (CFTC) also alleged that the exchange has named a derivatives regulator to launch the first US-regulated Bitcoin futures contract.
the next
Ibukun is a crypto/financial writer interested in passing on relevant information, using uncomplicated words to reach all types of audiences. Apart from writing, she loves watching movies, cooking, and exploring restaurants in the city of Lagos where she is staying.