Winklevoss crypto firm customers will get back triple the value of their frozen assets
New York CNN — Customers of the crypto platform Gemini can expect to recover more than three times the value of their digital assets that were ensnared in the fallout of FTX — a rare outcome for creditors involved in a bankruptcy.
Gemini, the exchange founded by Cameron and Tyler Winklevoss, said Wednesday that it has secured a 232% recovery for customers who participated in its lending program, Earn, a partnership with a third party that halted withdrawals as turmoil gripped crypto markets in November 2022.
More than 230,000 Gemini customers lost access to approximately $940 million worth of digital assets. In the year and a half since then, crypto has staged a comeback, bringing the value of the frozen funds to $2.18 billion.
“We are thrilled that we have been able to achieve this recovery for our customers. We recognize the hardship caused by this lengthy process and appreciate our customers’ continued support and patience throughout,” Cameron Winklevoss, Gemini’s president, said in a statement.
Gemini agreed in February to return at least $1.1 billion to customers of the lending program and pay a $37 million fine for unsafe and unsound practices as part of a settlement with the New York Department of Financial Services.
Wednesday’s announcement accounts for the appreciation of value in crypto, adding more than $1 billion to the total.
If, for example, a customer had lent one bitcoin in the Earn program, they can now expect to receive one bitcoin back.
At the time FTX imploded, causing chaos in crypto markets, bitcoin sank precipitously to around $17,500. A year and a half later, one bitcoin fetches just under $70,000.
Earn customers can expect to receive their remaining asset balance within the next 12 months, Gemini said.
Customers of FTX, once the second-largest crypto exchange on the planet, are also expected to be made whole, with interest, thanks in part to the rising value of FTX’s crypto holdings and smart bets on artificial intelligence that it was able to liquidate.
PayPal says its stablecoin — PayPal USD (PYUSD) — is now available on the Solana blockchain. The move is designed to make the stablecoin faster and cheaper to use, giving users the choice of multiple blockchains for more flexibility and control, according to a Wednesday (May 29) news release. “The Solana blockchain is known for processing massive amounts of transactions at high speeds with extremely low costs, providing significant benefits for commerce use cases,” PayPal said in the release. It’s also the most used blockchain for stablecoin transfers, according to data from blockchain analytics platform Artemis, making it ideal for PYUSD’s use in payments, per the release. “PayPal USD was created with the intent to revolutionize commerce again by providing a fast, easy, and inexpensive payment method for the next evolution of the digital economy,” PayPal Senior Vice President of Blockchain, Cryptocurrency and Digital Currency Jose Fernandez da Ponte said in the announcement. “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.” PayPal introduced PYUSD last August and began offering it to users of its Venmo payments platform weeks later. And last month, the company teamed with cross-border money transfer service Xoom partnered to let users make international transactions using PYUSD. Meanwhile, PYMNTS spoke recently with Sheraz Shere, head of payments at Solana Foundation, about the company’s push to make crypto payments more mainstream. “It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Shere said “Blockchains are really alternative rails for payments and financial assets.” Still, he added, there is an ongoing obstacle to accelerating cryptocurrency adoption — a lack of awareness especially among the upper reaches of financial services. “If you think about the mainstream, we are very early, even on the awareness side of things,” Shere said. That’s because although crypto advocates have deep insights into the technology, executives still need more education for them to truly embrace exploring the practical applications and potential of cryptocurrency within payments. “As an example, people are super excited about all these new [real-time payments] systems,” Shere said. “Imagine a global [real-time payments] system that just runs with no central authority. Well, we have that with stablecoins running on a network like Solana — fully permissionless, decentralized instant settlement.” “Don’t get distracted by the noise,” he added. “There is a lot of noise, but there are some interesting underlying technologies that are important for financial services leaders to understand.”
Bitcoin Pizza Day is held annually on May 22nd to commemorate the first real-world transaction of Bitcoin that occurred on May 22, 2010.
On this day, Florida programmer Laszlo Hanyecz purchased two pizzas for 10,000 Bitcoins. This transaction is considered to be the first time Bitcoin has been used as a currency in the real world.
The significance of the Bitcoin Pizza Festival is that it marks the beginning of Bitcoin's move from a virtual digital currency to the real world, and its gradual acceptance and recognition by people.
Bitcoin Pizza Festival is not only a monumental festival, but also an event of great significance. It demonstrates the potential and value of Bitcoin and also inspires people to explore and innovate in cryptocurrency.
$BTC What is the current development status of Bitcoin?
As of May 21, 2024, Bitcoin is still a relatively young and evolving technology, and its development is constantly progressing. Here are some of the key areas of development that are currently being focused on:
Scalability: Bitcoin's current transaction throughput is limited, which can lead to congestion and high fees. Developers are working on solutions to increase the scalability of the Bitcoin network, such as the Lightning Network and other second-layer protocols. Privacy: Bitcoin transactions are publicly viewable on the blockchain, which can raise privacy concerns. Developers are working on solutions to improve the privacy of Bitcoin transactions, such as Confidential Transactions and CoinJoin. Security: Bitcoin is a secure system, but there is always a risk of security vulnerabilities. Developers are working on ways to improve the security of Bitcoin, such as implementing new cryptographic algorithms and hardening the software against attacks. Adoption: Bitcoin is still not widely adopted, but there is a growing movement to accept it as payment for goods and services. Developers are working on ways to make Bitcoin more user-friendly and accessible to a wider audience. In addition to these technical developments, there is also a lot of work being done on the social and economic aspects of Bitcoin. This includes developing new business models, creating educational resources, and advocating for policies that support Bitcoin.
Here are some of the specific projects that are currently underway to improve Bitcoin:
The Lightning Network: The Lightning Network is a second-layer protocol that allows for faster and cheaper Bitcoin transactions. It is currently in beta testing, but it is expected to be fully deployed in the near future. Taproot: Taproot is a new upgrade to the Bitcoin protocol that improves privacy and security. It was activated in April 2021, and it is still being adopted by users and businesses.
$ADA is a proof-of-stake (PoS) blockchain platform that aims to be scalable, secure, and sustainable. It is often referred to as the "first scientifically sound blockchain" due to its rigorous development process, which involves formal verification and peer review. ADA is the native cryptocurrency of the Cardano blockchain and is used to pay transaction fees, stake on the network, and vote on governance proposals.
Potential benefits of Cardano:
Scalability: Cardano is designed to be highly scalable, meaning it can handle a large volume of transactions without sacrificing speed or security. This is achieved through its unique Ouroboros consensus mechanism, which is more energy-efficient than traditional PoW consensus mechanisms like Bitcoin's. Security: Cardano is built on a foundation of strong peer-reviewed cryptography and has been formally verified to identify and mitigate potential security risks. This makes it a secure platform for building decentralized applications (dApps) and storing sensitive data. Sustainability: Cardano is committed to sustainability and has implemented a number of features to minimize its environmental impact. For example, the Ouroboros consensus mechanism consumes significantly less energy than PoW consensus mechanisms. Active community: Cardano has a large and active community of developers and users who are passionate about the project. This community is essential for the ongoing development and adoption of the Cardano platform.
Potential risks of Cardano:
Technical complexity: Cardano is a complex technology, and it can be difficult for non-technical users to understand. This could hinder adoption. Regulation: The cryptocurrency industry is still largely unregulated, and there is a risk that governments could take action that could harm the price of ADA. Competition: There are a number of other PoS blockchain platforms that are competing with Cardano, and it is possible that one of these will be more successful in the long run. Volatility: ADA is a volatile asset, and its price can fluctuate wildly in a short period of time.
$DOGE is a decentralized peer-to-peer digital currency, favored by Shiba Inus worldwide. It is an open-source software that uses cryptography for secure transactions and to control the creation of new units. Dogecoin is often referred to as an "internet meme" cryptocurrency because of its origins as a joke on social media. However, it has gained a significant following and market capitalization in recent years.
Potential benefits of Dogecoin:
Low transaction fees: Dogecoin transactions are typically very inexpensive, making it a good option for small transactions or tipping. Large and active community: Dogecoin has a large and active community of users who are passionate about the cryptocurrency. This community has been instrumental in promoting and supporting Dogecoin. Strong brand recognition: Dogecoin has a strong brand recognition due to its association with the popular Shiba Inu meme. This brand recognition has helped to attract new users to the cryptocurrency.
Potential risks of Dogecoin:
Volatility: Dogecoin is a highly volatile cryptocurrency, and its price can fluctuate wildly in a short period of time. This makes it a risky investment. Lack of fundamental value: Dogecoin does not have any underlying assets or real-world use cases. This means that its value is largely based on speculation and sentiment. Regulatory uncertainty: The cryptocurrency industry is still largely unregulated, and there is a risk that governments could take action that could harm the price of Dogecoin.
Overall, Dogecoin is a speculative cryptocurrency with a number of potential risks and rewards. It is important to do your own research before investing in Dogecoin or any other cryptocurrency.