Famous Bitcoin and altcoin exchange Gemini came to the fore with negative developments after the FTX collapse. In addition to closing staking transactions, the stock market saw a large amount of fund outflow. Here are the details…
Bitcoin exchange Gemini hits by FTX crash
Gemini, which is mostly applied by institutional investors, has disabled its staking service. As a result of this development, many customers leave the stock market. Gemini is part of the Digital Currency Group ecosystem. Just like Grayscale behind Bitcoin trust funds like GBTC, which institutional investors apply. As we have reported as Kriptokoin.com, the crypto loan platform Genesis Trading, which is under the Digital Currency Group, has also stopped its withdrawals.
Digital Currency Group was previously negatively impacted by the bankruptcy of Three Arrows Capital. Genesis, which made a loan to Three Arrows Capital, was unable to recover its funds. On the other hand, Gemini has $175 million left in FTX. This indicates a minus $175 million in the financial statement. As a result, the financial outlook for Gemini is deteriorating.
What had happened?
FTX was one of the most popular crypto asset exchanges, but it exploded last week. He lost billions of dollars in cash from investors. The stock market and its associated institutions collapsed as FTX used money from the stock market to place bets through Alameda Research, the trading company also founded by the stock market’s CEO, Sam Bankman-Fried. After a leaked document revealed that Alameda’s assets are primarily in FTX-issued token FTT and other highly illiquid assets, rival exchange Binance has announced that it will sell its entire FTT stash.
The stock market crash sent shock waves throughout the crypto market, causing the prices of major coins and tokens to plummet. Bitcoin, the largest cryptocurrency by market cap, hit its lowest level in two years after the crash. Now, the operations of platforms such as Gemini and Genesis have been affected.
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