Cryptocurrency exchange Gemini temporarily lost access to cryptocurrencies the other day. The exchange had first announced that it had temporarily stopped the “Earn” product. Then, the cryptocurrencies that came out of the stock market increased. Here are the details…
Cryptocurrencies leave Gemini
Founded by the Winklevoss twins who are known to be crypto millionaires, Gemini has experienced a surge of withdrawals. Gemini appears to have been negatively impacted by the collapse of crypto companies FTX and Alameda. According to blockchain analyst platform Nansen, Gemini netted $485 million in 24 hours. The total debuts totaled $563 million. On the other hand, there were only $78 million in entries.
Over the past seven days, Gemini has had a total net outflow of $682 million. According to the data, the difference between the $ 866 billion inflow and the $1.55 billion outflow shows this. Most of these withdrawals took place on Wednesday. According to blockchain data platform Arkham Intelligence, Gemini’s balances in crypto wallets fell to $1.7 billion from about $2.2 billion a day ago.
Suspension of transactions caused an increase in withdrawals
The rush to withdraw came as Gemini paused withdrawals from Wednesday’s yielding Earn program. The lending unit of Genesis Global Trading, the crypto investment bank powering the Gemini program, made the statement. It announced that it is suspending client redemptions due to “excessive market drift” and “loss of industry confidence caused by the FTX boom.” As we have reported as Kriptokoin.com, Genesis has announced that it has suspended its operations.
The stock market, on the other hand, suffered an outage that soon resolved but exacerbated fears over its stability. Immediately after the announcement of the pause in the Earn service, users around the world pointed out that they were logged out of their accounts and some were unable to access different parts of the app. So it’s likely that investors panicked over Gemini’s liquidation operations as they were exposed to both Genesis and FTX.
But Gemini later tweeted that it was just an “Amazon Web Services outage.” Gemini told users that their funds are safe. He assured them that they could withdraw money as all services were backed up and up and running.
Gemini exchange fully back online; all customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time.
— Gemini (@Gemini) November 16, 2022
Fear of collapse spreads
With the bankruptcy of FTX and Alameda, the pressure on crypto exchanges and loan firms has increased, as we reported on Kriptokoin.com. Delphi Digital wrote that cautious investors are struggling to move crypto assets from centralized exchanges. Binance, Coinbase, and KuCoin have experienced massive deposit drops recently. Some smaller platforms, such as AAX, Liquid, and loan platform Salt, have stopped withdrawals. Multiple exchanges have tried to alleviate the widespread fear by sharing or promising to publish their crypto holdings.
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