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Gemini earn gusd11/16/2023 ![]() ![]() The initiative has propped up the market cap of GUSD amid customer outflows. Approximately 84% of all Gemini Dollars–some $590 million worth–are now held in the MakerDao protocol. One wallet then moved $460 million of GUSD into the MakerDao pool in return for Dai, then swapped those Dai for another stablecoin, then converted those tokens into dollars, according to the wallet’s transactions on Etherscan. Holders of GUSD could put up their Gemini Dollars as collateral in exchange for an equal number of Dai, the native stablecoin of MakerDao which also holds a $1 peg.Ī few weeks later, MakerDao increased the number of Gemini Dollars that could be exchanged for Dai–from $60 million to $500 million. In late September, Tyler announced a new partnership with MakerDao, a popular decentralized finance application. The terms of service’s section on Gemini Dollar states: “If you are a not a Gemini Customer, by obtaining or using the Gemini Dollar, you agree and understand that obtaining or using the Gemini Dollar does not create or represent any relationship between you and us.”Ĭameron and Tyler Winklevoss, the twins who founded Gemini in 2014 after pouring millions of dollars from their Facebook legal settlement into bitcoin, were seeking to draw more investment into GUSD in the weeks leading up to Gemini Earn’s freezing of withdrawals. Rather, “I was reading the large print that they were marketing heavily everywhere,” she says. Sarah acknowledges, as did others who spoke to Forbes, that she “did not necessarily read the fine print” of Gemini Earn’s terms and conditions, which had explained that her Gemini Dollars, and other tokens lent to Genesis, were not insured or protected. 14 email as of press time.Ī screenshot of the email Gemini and Gemini Earn investors received on November 14, less than 48 hours before Gemini announced all Earn funds were frozen. ![]() Gemini could not be reached for comment on the Nov. “They must have known something was going on, and they totally misled us by saying everything was fine,” she says. I was literally about to take it off,” says Sarah, who does not have any funds in Gemini’s non-Earn exchange, whose crypto deposits Gemini was seemingly referring to. “I saw that email and I changed my mind about withdrawing funds. The company reassured her and other customers in a November 14 email: “Gemini has no exposure to FTT tokens or Alameda and no material exposure to FTX.” The email’s subject line read: “Gemini is Built on Trust, Safety, and Compliance.” Two days later, Gemini announced that all Gemini Earn funds were frozen. In November, as FTX began to quickly unravel, Sarah contemplated yanking her GUSD from Gemini and converting it back to dollars–until Gemini persuaded her not to. (That very month, Genesis filed a $1.2 billion claim after losing that money to crypto hedge fund Three Arrows Capital.) That number grew to 8.05% in September, where it stayed until this April, before going down.to 6.9% and then, somewhat inexplicably, back up to 7.15% in July. Gemini appears to have launched GUSD on its Earn product in June 2021, beginning with an annual return of 7.4%, the highest of any coins. The rate of return available on Gemini Dollars was often the highest available for the dozens of tokens available for lending through Gemini Earn, as seen in archived links to Gemini Earn’s webpage. “I was seeing the yield that they were offering for some of their coins, specifically for the GUSD coin,” explains Sarah, who requested that Forbes use a pseudonym for fear of blowback from her employer. “Everything was so marketed as GUSD being this safe, stable asset that had one to one backing,” says Sarah, a Brooklyn-based investor who lent out $20,000 of GUSD through Gemini Earn beginning in January, when Gemini advertised the annual return on Gemini Dollar at over 8%. ![]() Since November 9, around the time of FTX’s collapse, GUSD holders have exchanged some $250 million worth of their Gemini Dollars back into dollars or other cryptocurrencies, according to data from CoinMarketCap. Previous filings will not be affected.ĭemand for Gemini Dollars has fallen off a cliff. Last evening, on December 15, Gemini emailed its customers to announce an update to the dispute resolution clause of its terms of service, to move future disputes to a separate arbitration forum. Gemini insists it has no obligations to those investors who bought Gemini Dollars and lend them out through Genesis. ![]()
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