What! The Winklevoss Exchange is out of money, uh-oh!

[wry]

All right, now this one really surprised me today.  It's one thing when some obscure Canadian exchange CEO dies without leaving anyone the password for the site's wallet, but the Winklevoss's Gemini Exchange I always figured was rock solid.  Yet today an article popped up that the Gemini Exchange was closing accounts rather than meeting their stable coin withdrawal demands.

While this is just an early report, I found it very disconcerting.  It appears the Gemini Exchange issues their stable coins at a 1% discount in order to encourage adoption, this should not be that big of a deal, the exchange should have been able to make some interest on the money they collected in the meantime, but if they went all in on BTC, well... that is not up.  Anyway, it Gemini really is not fully solvent, that would be a huge blow.  Plus if stablecoins cannot be redeemed, they're really not stablecoins.  Interestingly, the company notes that over half of their stablecoins issued have already been redeemed which is also interesting but seems to suggest this coin was flpped for the 1% discount or not really needed.

Anyway, it was an interesting news story, if a bit disconcerting.

Check out the article for yourself at:  https://www.coindesk.com/winklevoss-crypto-gemini-gusd-stablecoin-redemption

[Kate]

Well that sucks . This is a very clear sign to deinvest and reinvest some place else or some other coin. This clearly shows the exchange is in big financial problems. Hope they do recover. 

[polor12]

Wow..but in a way is kinda funny...he passes away but he is the only one that knows the password.. could only imagine his partners saying to each other "Do you know the pw?" each person that was asked shaking their head replying "No, you?" Every CEO in any company has a plan ready in case for any unfortunate event that might occur..

[Kate]

7 minutes ago, polor12 said:

Wow..but in a way is kinda funny...he passes away but he is the only one that knows the password.. could only imagine his partners saying to each other "Do you know the pw?" each person that was asked shaking their head replying "No, you?" Every CEO in any company has a plan ready in case for any unfortunate event that might occur..

That was the old news he was just referring to it as an unexpected and surprise event. In this hd talks about an exchange having problems in general. 

[barbaris]

On 2/6/2019 at 3:51 PM, polor12 said:

Wow..but in a way is kinda funny...he passes away but he is the only one that knows the password.. could only imagine his partners saying to each other "Do you know the pw?" each person that was asked shaking their head replying "No, you?" Every CEO in any company has a plan ready in case for any unfortunate event that might occur..

It is sad. I think that they could have done this on purpose to compensate for their losses at the expense of users, but this is my opinion.

[blueprints]

Oh hey i hard about this! I only read the titles and wondered what all the detail was but never got around to looking into it myself. So thanks for summarizing for us! I also learned a new word, disconcerting XD. 

I would expect such businesses to be more prepared especially when dealing with so much money. I guess gamblers arent the only careless ones in the crypto world.

[KiXxnTRiXx]

Ouch! Havent heard of tbem before but still, that is terrible! It is always sad to hear when a business have to shutdown for not having/making enough money! unfortunately that is the reality for some businesses as people really cant or wont support every business out there.

[nuuuitsjdragon]

On 2/6/2019 at 8:21 PM, wry said:

All right, now this one really surprised me today.  It's one thing when some obscure Canadian exchange CEO dies without leaving anyone the password for the site's wallet, but the Winklevoss's Gemini Exchange I always figured was rock solid.  Yet today an article popped up that the Gemini Exchange was closing accounts rather than meeting their stable coin withdrawal demands.

While this is just an early report, I found it very disconcerting.  It appears the Gemini Exchange issues their stable coins at a 1% discount in order to encourage adoption, this should not be that big of a deal, the exchange should have been able to make some interest on the money they collected in the meantime, but if they went all in on BTC, well... that is not up.  Anyway, it Gemini really is not fully solvent, that would be a huge blow.  Plus if stablecoins cannot be redeemed, they're really not stablecoins.  Interestingly, the company notes that over half of their stablecoins issued have already been redeemed which is also interesting but seems to suggest this coin was flpped for the 1% discount or not really needed.

Anyway, it was an interesting news story, if a bit disconcerting.

Check out the article for yourself at:  https://www.coindesk.com/winklevoss-crypto-gemini-gusd-stablecoin-redemption

What a surprise. I did not expect the Winklevosses’ to have such issues or even any financial difficulties that were trust-related.

I mean, their celebrity statuses should make it incredibly hard or even near-impossible for them to pull any fast stunts right!

Hopefully this is resolved and doesn’t blow up into a bigger problem... the crypto-scene has enough problems as it is. 

[williamshennie9]

An exchange not being able to allow users to withdraw is like my bank not giving me my money when I want it. Extremely concerning for the state of the company, and will most probably hurt their reputation in the long run.

[barbaris]

14 hours ago, williamshennie9 said:

An exchange not being able to allow users to withdraw is like my bank not giving me my money when I want it. Extremely concerning for the state of the company, and will most probably hurt their reputation in the long run.

Such banks or companies that admit this, do not worry about their reputation, knowing that everything is lost trying to squeeze as much as possible from their customers.