I tried logging into my Gemini account, and it is "temporarily grounded" at the moment... Looks like it has been down for about an hour so far, so it is not anything to get overly worried about, yet... Hopefully, Gemini has NOT overly gambled with their client's funds too.....even if they may well have lost a lot of funds that were in such "earn" product. So many folks believe that they need to "earn yield" on their coins.. which seems to be a slippery slope into shenanigans.. even tough we likely know that there should also be legitimate ways to "earn" so long as the "earning" is actually put into some product that is actually something other than a ponzi scheme and has actual collateral backing it up.
I think this is where a LOT of the "space" has underestimated the fallout from this thing. It is going to hurt every exchange that was stupid enough to send money over to FTX for some reason.
I read even Coinbase is stuck double digit millions (can't currently find the source) because of this. Now Coinbase can probably actually absorb that shock. But depending on the exposure and the size of the victim? There is no doubt we will see fallout?
Was Gemini dumb enough to have funds over there. Honestly, probably. Lots? Hopefully not. Or is it just that they are having the unfreeze some cold storage? Well for several reasons I hope that is the case.
No matter what, we are really only dipping under the surface of the water to BEGIN to get an idea of the size of this iceberg. I think we should see much more fallout.
Honestly i HOPE we do. I do not want people to get hurt... but i DO want to see the exodus of coins off exchanges not only continue, but accelerate.