- Crypto influencer claims Gemini has below $100 million worth of stablecoins left.
- The poster quoted no reliable data, but the crypto community found them believable.
- FUD mongers previously claimed KuCoin had a $300 million hole in its balance.
A popular crypto influencer account on Twitter, @WhaleChart, is propagating messages of fear, uncertainty, and doubt (FUD) in the community about the Uk-based crypto exchange, Gemini.
Yesterday, WhaleChart posted a warning message on Twitter, claiming the Gemini crypto exchange has below $100 million worth of stablecoins left in its coffers as outflows continue.
Although the poster did not quote any authentic source to back the claim, the crypto community nonetheless found the argument plausible. A Twitter user commented that given the leading US financial institution, Silvergate Capital Bank, sponsors the exchange, its fallout would be catastrophic to the crypto industry.
Notably, since the bankruptcy of the FTX exchange, crypto enthusiasts have been looking for possible red flags in the activities of significant crypto asset managers. Early last month, there were FUD panic calls against the KuCoin crypto exchange, which speculated that the business was short of funds.
A crypto fan group on, Lookonchain partly confirmed this suspicion based on available data from crypto analytic firm Nansen. Lookonchain noted that KuCoin witnessed an excessive stablecoin outflow of over $235 million within seven days. Nansen’s data further proved that KuCoin appears to be the most withdrawn exchange, even more than the embattled FTX.
However, upon further inspection of on-chain data, it became clear that the exchange only moved $300 million worth of USDT from the Ethereum network to the Tron blockchain.
Interestingly, the largest crypto exchange, Binance, faces continuous FUD calls daily despite publishing an audited financial proof-of-reserve and having the best market ranking. Notably, Gemini is among the many businesses yet to publish details of its reserve.