Quote from: dragonvslinux on November 16, 2022, 07:31:11 PM

Quote from: JayJuanGee on November 16, 2022, 05:30:58 PM

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.

On paper, Gemini Earn appears to be a relatively simplistic lending program:

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Gemini Earn is a lending program through which you may choose to lend your crypto to certain institutional borrowers and earn interest on your crypto.

At least based on the APYs (for example BTC 2.5%), it's not screaming ponzi, but ultimately how it actually functions under the hood is a different story... This probably isn't the real issue right now though.

The real question will be whether Gemini itself can deal with the withdrawal demand that comes it's way, this is what I'd trust a lot less right now. Given Gemini considered Genesis "trustworthy" and "audited" when they filed a claim against 3AC for $1.2B for loan defaulting months ago, should have screamed red flags. The fact they had $175 million effectively lost in FTX becomes much less relevant given that since July it looks like they had a big hole in their balance sheet - at least that's how it looks at a glance. Gemini not considering this an issue to terminate their partnership with them shows real poor oversight. So while there's apparently going to be 5 day delay for the Earn-based withdrawals - which I can actually believe as you can't just liquidate institutional borrowers overnight, but otherwise the loans could well be collateralised - the real question remains whether Gemini itself has the liquidity to deal with the bank run coming it's way. While everyone was looking at Kucoin and Crypto.com, it seems obvious now why Gemini could soon fall.

PS - Bare in mind FTX.US was also "completely unaffected" by FTX Int. going bankrupt, for about 24 hours at least Roll Eyes

I would think that Gemini would be a bit better at keeping the funding or their various products separate, even if they had that "Earn Product" that was likely having some funds held in ways that the funds were "earning" greater interest somewhere else in order that Gemini could pay the relatively modest rates of 2.5% APY on BTC in that program.

I personally never used that product, even though I do have some funds on their exchange.

Quote from: xhomerx10 on November 16, 2022, 07:32:12 PM

Quote from: Hueristic on November 16, 2022, 07:20:05 PM

Quote from: jojo69 on November 16, 2022, 02:38:15 PM

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Chief Executive Officer Derar Islim admitted that withdrawal requests exceeded current liquidity at Genesis Global Capital, the lending arm; but made it clear that Genesis's spot and derivatives trading and custody businesses remain fully operational.

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The contagion of Genesis lending issues has already hit one large firm, as Gemini Trust Co., the cryptocurrency platform run by the Winklevoss brothers, has halted withdrawals from its Earn program:

Nice word selection there.
Doesn't say anything about being solvent.

If you don't let customers make withdrawals you can't be insolvent.gif

Exchanges have tried those kinds of things historically, including their websites completely disappearing.. The BIGGER (and maybe well established in physical space) the harder it is for them to disappear like that. hahahahaha

But they could have one person "supposedly" hold all the private keys to all the stash, go on an orphan saving trip to India and then end up dying.. which might be almost the same as disappearing from the web.

Quote from: cAPSLOCK on November 16, 2022, 08:30:15 PM

A LOT of people are getting hurt by this damn thing. And almost none of them deserve it. certainly no one I know here...

I can think of a few.. but maybe I should not make a list?

How about eXPHorizon? He surely deserves it, no?

or

How about Billy_No_Coiner? He surely deserves it, no?

Ok...

no reason to get personal or into elaborate lists...

I suppose.

Quote from: Popkon6 on Today at 04:18:44 AM

Which direction will Bitcoin take? SELL OR BUY

Don't do anything. Just wait it out.

This is professional financial advice. from a nonprofessional.