Gemini, a cryptocurrency exchange based in New York, just opened its doors to the public. As of this writing, they are holding $30 billion worth of cryptocurrency under custody. The cryptocurrency that Gemini is holding under custody is Ethereum. Gemini was one of the few cryptocurrency exchanges that was publicly traded. They were listed on the Nasdaq under the ticker symbol “GEMZ.”
The New York State Department of Financial Services (NYSDFS) has officially seized $30 billion worth of cryptocurrency from its parent company, Gemini. The $30 billion is the largest cryptocurrency seizure of its kind and comes on the heels of a warning from the NYSDFS on Monday stating that investors should be wary of investing in cryptocurrency exchanges.
According to a report from The Wall Street Journal published Wednesday, the Gemini cryptocurrency exchange—which launched in December and is owned by the New York State’s financial services regulator—has seized $30 million worth of cryptocurrency that was reportedly tied to the collapse of the Japanese exchange Coincheck.
- Gemini, a cryptocurrency exchange, currently has $30 billion in cryptocurrency.
- The Winklevoss Twins want to float Gemini on Nasdaq, similar to Coinbase.
- Other exchange listings may have a major effect on Coinbase’s pricing share.
As competition among major US exchanges grew, Gemini, the Winklevoss Twins’ crypto exchange, currently has $30 billion in cryptocurrencies under custody.
According to a Gemini blog post, the exchange has seen significant growth this year, thanks to high demand from institutional customers.
According to the blog article,
“We have more than quadrupled our crypto under custody since the beginning of 2021, tracking with the remarkable rise of the crypto sector this year and increasing involvement from institutional investors.”
Gemini collaborates with major asset managers. BlockFi, Blockchange, CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors, and WealthSimple are among of the companies involved.
Furthermore, Gemini is a New York-based firm established by Tyler and Cameron Winklevoss in 2014. The twins, however, told Bloomberg that they are considering a Nasdaq public offering for Gemini, similar to Coinbase.
Other exchanges’ listings, in particular, may have a major effect on Coinbase’s pricing. Coinbase’s price, for example, has fallen from $328.28 on its first day of trade to $288.46.
The value of Coinbase’s stock is expected to plummet by more than $100.
New Constructs’ CEO, David Trainer, is also an analyst at Veteran Wall Street. Due to increased competition, the trainer predicts that Coinbase’s share price will drop to above $100. Trainer believes Coinbase is now overpriced. Furthermore, based on its current value, it is expected to surpass the combined yearly revenue of the Intercontinental Exchange and Nasdaq.
Coinbase is anticipated to announce Q1 profits of $3.07 per share on sales of $1.82 billion on Thursday. Furthermore, Trainer said that if it meets or surpasses expectations, it would draw more rivals, lowering future revenues.
Trainer cautioned in April that Coinbase’s new $100 value was much too high owing to significant competition from Gemini, Bitstamp, Kraken, and Binance. According to a study published in March, Coinbase Custody will have over $90 billion in assets under custody by the end of 2020.
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