Gemini (digital currency exchange)

Gemini
Type of site
 Private
Key people Cameron Winklevoss (Co-founder), Tyler Winklevoss (Co-founder)
Industry Cryptocurrency
Products Bitcoin, Ether, Zcash, Gemini dollar Exchange
Employees 100+ (May 2018)[1]
Website www.gemini.com
Alexa rank Increase 3433 (As of 23 February 2018)[2]
Current status Active

Gemini Trust Company, LLC (Gemini) is a digital currency exchange and custodian that allows customers to buy, sell, and store digital assets. Gemini is a New York trust company that is regulated by the New York State Department of Financial Services. Gemini was founded in 2014, by Cameron and Tyler Winklevoss.[3][4][5]

In June 2016, according to CNBC report, Gemini became the world's first licensed ether exchange. In May 2018, it was announced that Gemini had become the world's first Zcash exchange. Currently, it operates in the United States, Canada, the United Kingdom, South Korea, Hong Kong, and Singapore.[6] In May 2018, it was announced that Gemini had become the world’s first licensed Zcash exchange.[7] Primary competitors include Coinbase, Binance, Bitstamp, and Kraken. All users are able to trade cryptocurrency and fiat currency on an open market. Users are able to transfer USD to and from their bank accounts.[8]

Gemini began in order to facilitate the purchase and storage Bitcoin through a complex system of private keys and password protected environments. Only a small percentage of the total bitcoin on the exchange is held online to minimize the risk of loss from hacking.[9] As pointed out by the site Profit Confidential regarding compromised exchanges:

To be perfectly honest, there is no yes or no answer to the “Are Ethereum exchanges safe” question. Going purely on past records, they are safe though exchanges like Poloniex have been hacked. This does not make Poloniex any less safe than the others. People who hack exchanges are constantly upgrading their methods, and likewise, the exchanges are trying to stay a step ahead. The best bet is to use offline storage of ETHs once the transaction is complete.[8]

The New York Times has reported that Gemini is trusted by Ari Paul, of the hedge fund BlockTower Capital, who deals in virtual currency.[10] According to reports by both Bloomberg News and Fortune Magazine, Gemini was the first exchange to launch bitcoin futures contracts in December 2017. Fortune Magazine reported that Cboe uses Gemini "as the basis for the daily settlement for the bitcoin futures".[11]

History

Tyler and Cameron Winklevoss announced Gemini in January 2014 and the company went live on October 25, 2015. Gemini began adding to the financial services it offers thereafter, some of which include FIX and API support. On May 5, 2016 Governor Andrew M. Cuomo of New York State announced the approval of Gemini as the first licensed Ethereum exchange based in the United States.[12] Additionally, in 2016, Gemini announced it would allow users to withdraw Ethereum Classic (ETC) from the exchange, following a hard fork in Ethereum's code.[13]

In October 2017, Gemini announced that it was allowing registered users to withdraw Bitcoin Cash from the exchange provided they had a balance available on the exchange prior to the Bitcoin hard fork in August 2017.[14]

Fortune Magazine reported that Cboe uses Gemini to settle its Bitcoin futures contracts, "XBT", in December 2017.[15] Cboe partnered with Gemini so as to use Gemini's dollar denominated auction price for these contracts.

According to Bloomberg News, Gemini began offering "Block Trading" in April 2018. Block Trading enables Gemini users to buy and sell large quantities of digital assets outside of Gemini's continuous order books, creating an additional liquidity mechanism when trading in greater size.[16]

The Winklevoss twins said that their main goal in 2018 was to add Bitcoin Cash and Litecoin.[17][18]

In March 2018, Gemini added a number of partnerships and products to its portfolio and network. It announced a partnership with Caspian, the full-stack cryptocurrency trading and risk management platform for institutional and complex investors.[19]

In April 2018, it was reported by Reuters that Gemini would be utilizing NASDAQ's SMARTS technology to monitor trades and combat fraudulent activity and price manipulation on its exchange.[20]

On May 14, 2018, the New York Department of Financial Services announced it had approved Gemini to offer Zcash (ZEC) on their platform. The NYDFS commented that its decision was a "continuation of New York's longstanding commitment to innovation and leadership in the marketplace." Gemini's CEO, Tyler Winklevoss, was quoted in the same press-release saying that Gemini "is proud to be the first licensed exchange in the world to offer Zcash trading and custody services."[21]

On September 10th, 2018, Bloomberg News reported that Gemini had received regulatory approval for a new product, the Gemini dollar (GUSD) from the NYDFS and would launch trading of the coin that same day. Gemini described the product as a so-called “Stablecoin” which maintains a 1-to-1 peg with the American dollar.[22][23]

Service disruptions

The site's primary challenge has been remaining online at times of excessively high volumes, a relatively common occurrence for any website receiving an unusual amount of traffic.[24][25] On November 28, 2017, for example, both Gemini and Coinbase crashed for several hours. Gemini was showing a "504 gateway time-out" message, and the status page showed "Systems are currently experiencing degraded performance."[26] Subsequently, the Gemini Blog offered this comment. "This is not the first scaling challenge we’ve encountered, and it won’t be the last. We’re continuing to improve our performance and infrastructure monitoring so we can anticipate potential problems more quickly in the future."[27]

References

  1. ↑ "LinkedIn employees".
  2. ↑ "gemini.com Site Info". Alexa Internet. Retrieved 2018-02-23.
  3. ↑ "With Winklevoss Bitcoin Exchange, Digital Currency Grows Up". Retrieved 2016-01-08.
  4. ↑ Daniel Roberts (5 October 2015). "Winklevoss Brothers Get License for Gemini Bitcoin Exchange – Fortune". Fortune. Retrieved 8 January 2016.
  5. ↑ Paul Vigna. "Winklevoss Twins' Gemini Exchange Gets Trust License – BitBeat". WSJ blog. Retrieved 8 January 2016.
  6. ↑ Hungerford, Arjun Kharpal, Nancy (2016-06-21). "The Winklevoss twins are launching their bitcoin exchange outside of the US". CNBC. Retrieved 2017-10-19.
  7. ↑ Kharif, Olga (2018-05-14). "'Privacy Coin' ZCash Lands on Winklevoss's Gemini Exchange". Bloomberg L.P. Retrieved 2018-05-25.
  8. 1 2 "Top 5 Best Exchanges to Buy ETH (2017-2018)". 22 December 2017.
  9. ↑ https://www.consumerreports.org/cryptocurrency/how-safe-is-bitcoin-really/
  10. ↑ Popper, Nathaniel (19 December 2017). "How the Winklevoss Twins Found Vindication in a Bitcoin Fortune" – via NYTimes.com.
  11. ↑ "Winklevoss Twins Say Futures Are Just the Beginning for Bitcoin".
  12. ↑ "Governor Cuomo Announces Approval of First U.S.-Based Ethereum Exchange, Created and Operated In New York". Governor Andrew M. Cuomo. 2016-05-05. Retrieved 2018-06-06.
  13. ↑ Winklevoss, Cameron (2016-08-12). "UPDATE #2: Ether Classic Withdrawals". Gemini. Retrieved 2018-06-06.
  14. ↑ "Bitcoin Cash (BCH) Withdrawals". Article. Gemini Exchange. 2017-10-07.
  15. ↑ "Bitcoin Futures Trading Brings Crypto Into Mainstream". Article. Bloomberg. 2017-12-09.
  16. ↑ "Winklevosses' Gemini to Offer Cryptocurrency Block Trading". Article. Bloomberg. 2018-04-09.
  17. ↑ "Winklevoss Twins Say Crypto Exchange May Offer More Coins". Article. Bloomberg. 2018-03-08.
  18. ↑ "Adding Bitcoin Cash and Litecoin Is Main Goal of 2018 for Gemini Exchange". News Article. Bitcoin.com News. 2018-03-11.
  19. ↑ "Eddie Murphy-Inspired Fintech Firm Signs With Winklevoss Crypto Exchange". Article. Bloomberg. 2018-03-21.
  20. ↑ "Winklevoss Twins Hire Nasdaq to Watch for Crypto Cheaters". Article. Bloomberg. 2018-04-25.
  21. ↑ "Press Release - May 14, 2018:". www.dfs.ny.gov. Retrieved 2018-06-06.
  22. ↑ "Terms of Service Violation". www.bloomberg.com. Retrieved 2018-09-26.
  23. ↑ "September 10, 2018: DFS Continues to Foster Responsible Growth in New York's". www.dfs.ny.gov. Retrieved 2018-09-26.
  24. ↑ Irrera, Jemima Kelly & Anna (25 December 2017). "Bitcoin fever exposes crypto-market frailties" – via Business Standard.
  25. ↑ Detrixhe, John. "Bitcoin is going bananas and exchanges are struggling to keep up".
  26. ↑ "Bitcoin's price is collapsing and people can't trade because 2 big exchanges have crashed".
  27. ↑ "Gemini, the crypto exchange founded by the Winklevoss twins, extends maintenance after massive bitcoin sell-off".
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