Gemini Gives Good News: 97% of Earned User Assets Returned!

Bittime - Gemini crypto exchangepreviously frozen Earn product user assetsEven though most assets are back, the potential for heavy selling pressure from users raises concerns of an overall decline in crypto prices.

Threat of Crypto Selling Pressure: Will Bitcoin and Ethereum Prices Be Pressured?

The Gemini crypto exchange has just returned the assets of users of its closed Earn product. In an official announcement on May 29, 2024, Gemini stated that it had returned crypto assets worth $2.18 billion US dollars to users.

Also read: Mastercard Makes Crypto Transactions Easier with New Alias ​​System

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The returned assets represent 97% of the total digital assets owned by Earn users. This is a sign of significant recovery for users, considering the delay in withdrawing funds that occurred in November 2022 due to the bankruptcy of crypto lending company, Genesis. The Genesis collapse caused concern among Earn users.

Gemini's "In-Kind" Scheme Brings Profits

In this return process, Gemini uses the "in-kind" method. This means that users receive back the same amount of crypto assets as they invested in the Earn program. For example, if a user lends 1 Bitcoin to Earn, they will receive 1 BTC back.

Also Read How to Buy Crypto:

This "in-kind" scheme has the potential to benefit Earn users. The reason is, the value of several crypto assets has increased significantly in the last two years. With this scheme, Earn users have the potential to gain profits of up to 232%.

Gemini Founder Optimistic and Accuses of "Ancient Financial Fraud"

Gemini founders Cameron and Tyler Winklevoss emphasized the importance of this recovery. They stated:

"This is an extraordinary recovery in the history of bankruptcy in the crypto space, one could even say bankruptcy in general. This recovery follows the initial agreement we reached with Genesis and other creditors in their bankruptcy process. This agreement guarantees the return of 100% of Earn users' crypto assets in full 'in-kind'."

Interestingly, Gemini blamed “antiquated financial fraud exacerbated by a lack of regulatory clarity” in the United States for Genesis' bankruptcy, rather than problems within the crypto industry itself.

Therefore, Gemini confirms their commitment to fighting for better regulations to support the crypto industry. They stated:

"We will continue to fight for clear rules and guidance for our industry, that encourage innovation and protect consumers. We are confident we will win this fight. The future of the crypto industry is bright."

Threat of Crypto Selling Pressure

Although the news of this recovery is welcomed, industry analysts are worried about the potential for large crypto selling pressure. It is feared that Earn users who are now holding back their crypto assets will sell large amounts.

Evan Cohen, a thesis investor, observes:

"Many 'sellers' are now preparing to release their crypto assets that have been locked for 2 years."

It is feared that this increased trading activity could put pressure on Bitcoin and Ethereum prices. Data from CryptoSlate shows a modest decline of 0.73% in the overall crypto market in the last 24 hours. Currently, the prices of BTC and ETH are around $67,640 and $3,761 respectively.

Industry observers are closely monitoring the situation to see if the feared selling pressure is real and how it will impact crypto prices as a whole.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.