As more and more crypto companies face scrutiny – and some throw in the towel after a rough bear market – questions are being raised as to whether this could be a good thing for crypto.
The latest among crypto entrepreneurs who are now facing scrutiny are Cameron and Taylor Winklevoss, who founded Gemini exchange. The twins have been in the limelight recently as a feud between them and fellow crypto entrepreneur Barry Silbert surfaced over Gemini’s interest-paying “earnings” program.
The partner Gemini worked with for its Earn program was Genesis Global Capital, a subsidiary of Silbert’s Digital Currency Group (DCG). But when Genesis last November Redemption withheld for your customersGemini customers were also unable to withdraw funds held on Gemini Earn.
according to bloomberg Article From Tuesday, the twins – who previously wrote an open letter to the DCG’s board in January where they called on the board Dismiss Barry Silbert as CEO of the company – is as much to blame for this situation as Silbert.
According to the article, Gemini employees had expressed concerns about the exchange’s reliance on Silbert’s peers from 2021, but were unable to find another company to work with. It added that Gemini had tried to “move forward” with Genesis as its partner, even as other crypto lenders collapsed, and Silbert’s exposure to bankrupt crypto hedge funds three arrows capital was made public.
At the same time, the subsidiary of both Gemini and DCG has been Genesis Global Capital. accused of violating securities laws made the situation even more dire for both, by the Securities and Exchange Commission (SEC).
“The [SEC] The SEC charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offering and sale of securities to retail investors through the Gemini Earn Crypto Asset Lending Program, the SEC wrote in a press release on January 12.
CZ vs SBF
Perhaps the Highest Profile Decline in Crypto Last Year the war of words that broke out Between Binance CEO changpeng zhao (CZ) and disgraced FTX founder Sam Bankman-Fried (SBF).
The feud between the two started after CZ announced on Twitter that he wanted to sell his Binance holding FTX Token (FTT)resulted in the fall of FTX and the arrest of SBF.
And with FTX and its founder now out of the picture, the crypto landscape is wide open for Binance to increase its dominance – if it can survive Current crypto winter.
Not surprisingly, Bankman-Fried has continued Blame Binance and CZ for the Fall of FTXeven after his downfall.
,[…] Bankman-Fried wrote in a blog post in early January that “an extreme, quick, targeted crash generated by the CEO of Binance left Alameda bankrupt.” He added that the infection from Alameda then spread to FTX and other companies, bringing them down as well.
“Crypto Isn’t Going Away,” Says Novogratz
Finally, well-known former Wall Street banker turned crypto entrepreneur Mike Novogratz has also made headlines in recent days after announcing that The main focus for this year will be on “survival”.
Speaking on CNBC earlier this month, Novogratz called 2022 “a grand washout” for crypto. He added that with regulatory headwinds and a lack of a compelling narrative around crypto, 2023 should be viewed as a “transition period” that companies need to try to survive.
However, with all the cleanup of bad actors in crypto already, it is now a “very clean market,” according to Novogratz, who also added that “crypto is not going away.”
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