- Cryptocurrency exchange Gemini observes withdrawals worth $570 million.
- Gemini is suffering repercussions of the FTX collapse as fears cloud the crypto industry.
- Gemini’s digital asset balances dropped from $2.2 billion to $1.7 billion in 24 hours.
Winklevoss Brother’s cryptocurrency exchange Gemini is currently suffering from repercussions of Sam Bankman-Fried’s FTX bankruptcy, alongside all the crypto firms in the industry. In the last 24 hours, Gemini has seen withdrawal outflows totalling $570 million.
According to crypto and blockchain intelligence platform Nansen’s Twitter post, Gemini has observed $494.6 million precisely in net outflow, while Binance, Coinbase, and Kraken have suffered outflows worth $437.2 million, $57.1 million, and $38.1 million, respectively.
Moreover, Gemini outflows gathered to be a total of $563 million while being offset by a mere $78 million in inflows. In addition, Gemini’s net outflows have compounded to $682 million in the last seven days, the difference of $866 billion of inflows and $1.55 billion of inflows reported by Nansen, indicating that Wednesday was most eventful in terms of outflows.
According to the blockchain data platform, Arkham Intelligence, digital asset balances on Gemini’s crypto wallets dropped from $2.2 billion to $1.7 billion in just 24 hours. However, this data may not include all of Gemini’s wallets since Nansen and Arkham don’t recognize Bitcoin blockchain data.
On November 16, Gemini paused its yield-generating Earn program that drove the sudden rush of withdrawals on the exchange. Due to “extreme market dislocation” and “loss of industry confidence caused by the FTX implosion,” Genesis Global Trading which powers Gemini’s yield-earn program, announced it is halting customer withdrawals.
Meanwhile, Gemini shared in a statement,
“We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible. We are disappointed that the Earn program [service agreement] will not be met, but we are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfil their obligations to customers under the Earn program.”
Meanwhile, the Gemini platform experienced an Amazon Web Services EBS outage with one of our primary databases. However, it was soon resolved and the exchange was restored.
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