- Gemini Earn users receive significant crypto payments after a long wait.
- The amount repaid has increased by $1 billion compared to when Genesis halted withdrawals.
- According to Gemini, 97% of the missing crypto assets have been returned, boosted by a $50 million contribution from the company.
Gemini Earn users finally receive a payout of $2.18 billion worth of crypto assets, marking a crucial milestone in their recovery process.
Gemini Distributes $2.18 Billion in Crypto to Earn Users
In a significant development for Gemini Earn users, the cryptocurrency exchange Gemini, owned by tech billionaires Cameron and Tyler Winklevoss, announced on May 29 that users of its Earn program have received a total of $2.18 billion worth of crypto assets. This marks a substantial increase of $1 billion from the amount recorded when Genesis halted withdrawals.
Genesis Global Capital Collaboration
Gemini’s recovery strategy involved close cooperation with Genesis Global Capital to ensure users recovered their investments. The company highlighted that the assets returned to users have recovered to 232% of their value since Genesis’s withdrawal halt. This recovery effort was further bolstered by a $50 million contribution from Gemini to support the affected users. The initial distributions represent approximately 97% of the digital assets in the Earn program, with the remaining assets expected to be paid out over the next 12 months.
Potential Market Impact and Investor Reactions
As Genesis halted withdrawals on November 16, 2022, Bitcoin’s price was hovering around $16,624. With the current price at approximately $70,000, there are concerns that the substantial payouts may lead to selling pressure among investors. However, despite the news flow, Bitcoin has maintained its support level at $67,000, and the anxiety over selling pressure is somewhat alleviated due to the relatively moderate payment amounts. Analysts suggest that the more significant impact might be observed during the repayment process of MT.Gox.
Conclusion
The $2.18 billion payout to Gemini Earn users signifies a pivotal recovery milestone for the company and its clients. With 97% of the lost crypto assets already returned and the remainder expected within a year, the collaborative effort between Gemini and Genesis Global Capital showcases a significant recovery process. While market reactions remain mixed, the careful management of these repayments has helped stabilize the current crypto market to some extent. The future repayments and their market impact will be closely scrutinized as the industry moves forward.
