• Gemini is facing regulatory and financial challenges, resulting in a decrease of its global trading volume to 0.12%.
• In November 2022, the Earn Program partner Genesis failed to pay $765 million, leading Gemini to discontinue the program.
• JPMorgan sought to end its partnership with Gemini due to unprofitability, however this was denied by Charles Harder, Gemini Trust Lawyer.
Gemini is fighting to reverse its market share decline amid regulatory and financial challenges. In November 2022, the now-bankrupt Genesis failed to pay $765 million owed on the Earn Program partnership, causing Gemini to discontinue the program on Jan. 10th. The U.S. Securities and Exchange Commission (SEC) then slapped both firms with a lawsuit alleging the Earn Program constituted the sale of unregistered securities which they have since filed for dismissal for because it isn’t a security offering. Last month, Winklevoss twins lent Gemini $100 million indicating that market downturns are weighing heavily on their bottom line while an unnamed source told Bloomberg that JPMorgan sought to end its partnership with them due to lack of profitability though this was denied by Charles Harder from their legal team.
Market Share Decline
As a result of these troubles, Gemini’s global trading volume has sunk from 0.90% in October 2020 down to 0.12% in May 2021 according to CryptoCompare data – seeing key rivals continue market share expansion instead at their expense. This puts them well behind Coinbase Pro (9%) and Binance (6%) as well as Huobi Global (4%), Kraken (3%), OKEx (1%), Bitstamp (1%) and Liquid (0.4%).
Earn Program Dismissal
Gemini has filed for dismissal of SEC’s case against them claiming that the Earn Program does not constitute a security offering but rather is an investment platform under Regulation D 506(c). They argue that this renders it exempt from registration requirements under Title IV of the federal securities laws as SEC had claimed previously when they alleged violations in Section 5(a) & 5(c) of those laws by both firms involved in running it – namely themselves and Genesis who was supposed to be paying out $765 million but couldn’t manage so at the time leading up until now when they are seeking dismissal based on these exemptions being put into place before even launching back in 2019 thus protecting them legally if it were deemed an actual security offering at any point afterwards or not .
With Winklevoss twins having loaned out $100 million last month due presumably due in part from all these events transpiring coming together creating pressures on their balance sheets it seems likely other financial troubles may be brewing underneath too despite Charles Harder denying reports about JPMorgan wanting out after finding unprofitability within their relationship together still remaining intact for now .
Despite all these issues happening back-to-back seemingly one after another putting strain upon every aspect of what would otherwise be considered normal operations for most exchanges today , Gemini is still pushing forward despite being pushed back continuously each step along way . Whether or not they will eventually make a comeback remains yet seen , only time will tell .