Billionaire Winklevoss Twins in Crisis Mode as Gemini Crypto Exchange Faces Setbacks – What's Going On?
Tyler and Cameron Winklevoss, the billionaire twins behind crypto exchange Gemini, are facing a series of setbacks as issues surrounding their exchange have reached new heights in recent times.
The crypto company is struggling with a shrinking market share, regulatory issues, a lawsuit by the SEC, a possible breakup with a banking partner, and a crucial due date on a loan.
The loan, if repaid by the lending partner's parent company, could help recoup some of the $900 million worth of crypto deposits trapped in its defunct Earn product, according to a Bloomberg report.
While trading activity has modestly recovered as of late, the growing regulatory pressure as well as the exchange's small market share makes it difficult for Gemini to get back on its feet.
“Their small market share and raft of regulatory troubles portend a bleak future for Gemini,” said Eswar Prasad, a professor at Cornell University and author of The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance.
That, and the skepticism of retail investors who lost money during the recent market meltdown, could “make it difficult for an exchange like Gemini to find a suitable niche.”
Last week, the founders were spotted in London following other US crypto executives who have recently gone on charm offensives abroad in part to counter the US crackdown.
There, they met with regulators and talked up a possible second headquarters in the UK.
On Thursday, the twins announced that Dublin would become Gemini’s new European base.
The firm has recently launched a derivatives exchange, Gemini Foundation, in a number of jurisdictions outside of the US, UK, and European Union. It also announced plans to set up an engineering hub in India.
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