Gemini’s Bitcoin Inflows From Other Exchanges Dropped to Roughly Six-Year Low, CryptoQuant Data Shows

Executives at Gemini, the crypto exchange led by Cameron and Tyler Winklevoss, have insisted in a blog post that the halt in customer withdrawals on the company’s $900 million Earn program “does not impact any other Gemini products and services.”

Make your SeatExecutives safe with Gemini, crypto trading conducted by Cameron and Tyler Winklevoss, have insisted in a blog post that stopping client withdrawals on the company's $900 million Earn program "has no bearing on other Gemini products and services."

But a careful review of blockchain data shows a recent slowdown in Bitcoin incoming transfers (BTC) to Gemini from accounts to other exchanges, that analysts see as a potential sign some crypto traders have become more reluctant to send their assets to the primary platform.

Bitcoin holders may not distinguish that the return focused on the Win program is distinct from the exchange. Average has fallen to 106.5 btc on Jan. 8, the lowest in almost six years.

“Declining BTC inflows from other exchanges to any particular exchange could suggest investors/traders see that particular exchange as less desirable to have their coins on,” said CryptoQuant in a report on Jan. 3.

"The decline in BTC entries from other exchanges to a particular stock exchange may suggest to investors/traders that this stock exchange should be considered a particular stock exchange as less desirable to have their parts over," says CryptoQuant in a report about Jan. 3.(CoinDesk and CryptoQuant)

For example, the current 30-day Kraken and COINBASE values for their BTC entries are not approaching their lowest level in six years. In 2023, Kraken inbound BTC transfers were in the range of approximately 700 BTC to 1030 BTC, while coinbase's varied from approximately 2,800 btc to 3,700 btc. kraken and coinbase btc entries increased 42.5% and 30.5, respectively, this month, cipher-wise.

Controversy over Gemini’s Earn program

Gemini executives have blamed the withdrawal halt at the Earn program on a separate withdrawal halt at the crypto trading and lending firm Genesis, a unit of the blockchain conglomerate Digital Currency Group (which also owns CoinDesk). Depending on the winning terms, clients would receive a return on their deposits. Gemini, in turn, moved the deposits to Genesis, who promised to invest these deposits for interest.

But when Genesis stumbled upon the financial difficulties, he stopped withdrawing, forcing gemini to force the arrest on his own customers.

Not only has the matter erupted into a feud on Twitter between Cameron Winklevoss and Barry Silbert, the DCG CEO, but the failed business arrangement also has now prompted a lawsuit by the U.S. Securities and Exchange Commission.

Walter Teng, vice president of digital asset strategy at Fundstrat Global Advisors, said the inability for users to withdraw from Gemini’s Earn program has “negatively” affected people’s perception about Gemini.

“The failed business arrangement also led to a lawsuit by the U.S. Securities and Exchange Commission. Walter Teng, VP of Digital Asset Strategy at Fundstrat Global Advisors, said the inability of users to opt out of the Gemini Earn program has "negatively" affected people's perception of Gemini."

In response to a request for comment from CoinDesk, Gemini’s head of communication, Natalie Rix, highlighted the website for the Gemini Trust Center, which states that “Gemini is a full-reserve exchange and custodian. "if clients have already loaned gemini 10%, which subsequently lent to this conglomerate, which subsequently loaned to degenerate commercial companies, In response to a request from Coindesk to provide feedback, Chief Communications Officer of Gemini, natalie rix, has highlighted the Gemini Trust Centre website, which stipulates that "gemini is an exchange of reservations and a depositary.”

Gemini did not respond to a follow-up question that focused on the decline of BTC inflows from accounts on other exchanges.