Gemini fails to obtain outside investments, turns to its owners for a $100m loan ByAli RazaPRO INVESTOR Updated: 11 April 2023 DisclosureWe sometimes use affiliate links in our content, when clicking on those we might receive a commission – at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy. Join Our Telegram channel to stay up to date on breaking news coverage Like Coinbase, Gemini is one of the largest regulated, centralized crypto exchanges in the United States. The platform is owned by Tyler and Cameron Winklevoss, and the twins recently had to lend $100 million to their own crypto exchange to make sure it would manage to survive the market downturn. Gemini has yet to give $100 million to Earn users The exchange previously attempted to get outside funding, according to an anonymous source familiar with the matter. Unfortunately, the twins were unable to secure support from the outside. Given that the collapse of FTX is still fresh in everyone’s memory, it is easy to understand why people might hesitate to support a crypto exchange, especially since the crypto industry is only beginning its recovery. So far, however, Gemini did not address the matter, and neither did the Winklevoss twins. However, the figure in question stands out, partially because this is the same amount that Gemini agreed to provide to some of its customers as part of the Genesis bankruptcy case. Genesis is owned by DCG (Digital Currency Group), and the platform announced that it would freeze withdrawals in the aftermath of last November’s FTX collapse. The collapse had a massive impact on numerous businesses in the crypto industry. Most companies that were closely tied to FTX suffered a collapse of their own, but in total, it is estimated that dozens of businesses were affected in one way or another. Genesis’ decision to freeze withdrawals resulted in a lot of money becoming locked up and inaccessible, including the money belonging to Gemini’s Earn yield product customers. DCG then managed to reach a settlement with creditors earlier this year, in February 2023. As part of this deal, Gemini said it would provide Earn users with $100 million to make up for some of the money they can no longer access. Of course, it was not confirmed that the $100 million loan provided by the Winklevoss twins would be used to pay the creditors, but the fact that it is the same figure certainly makes it a valid possibility. $100 MM is the amount Gemini has proposed to Gemini Earn as a sweetener to waive liability. It looks like the Winklevoss will advance a loan to Gemini and then Gemini will disburse to Earn as part of Ch 11 process. It also looks like the deal is going thru if this is… — Ram Ahluwalia, higher for longer crypto CFA (@ramahluwalia) April 10, 2023 The Consequences of the crypto winter Of course, while Gemini managed to survive the crypto winter, it did not go through it without being impacted. The fact that it failed to secure an outside investment at all is in sharp contrast to the situation in November 2021 when it managed to raise $400 million. At the time, its estimated value was $7.1 billion. Genesis’ bankruptcy bruised Gemini as well, given that it was its sole partner on the Gemini Earn lending product. Also, while Gemini offered to give $100 million back to the users, it is estimated that $900 million were initially locked up when Genesis filed for bankruptcy, which means that Gemini’s generous proposal is still only a small portion of the money that users expect to get back. I am not sure that $100m will be enough for all Earn users. — Biser (@biserdimitrov) April 10, 2023 Related Gemini Review 2023 – READ THIS Before Investing Genesis and Gemini Get Sued By The SEC- Find Out More Gemini co-founder says that the next crypto bull run will come from Asia Wall Street Memes - Next Big Crypto Rating Early Access Presale Live Now Established Community of Stocks & Crypto Traders Featured on BeInCrypto, Bitcoinist, Yahoo Finance Rated Best Crypto to Buy Now In Meme Coin Sector Team Behind OpenSea NFT Collection - Wall St Bulls Tweets Replied to by Elon Musk Learn More Join Our Telegram channel to stay up to date on breaking news coverage