- Gemini tried to raise money in an informal fundraising campaign but failed to do so.
- Tyler and Cameron Winklevoss then invested their own money into the exchange.
- Crypto venture capital activity has been low in the past year.
The current crypto winter has been one of the harshest in the industry’s history. Multiple companies and protocols have imploded, and many more are approaching extinction.
One such crypto company seems to be Gemini.
Winklevoss Twins to the Rescue?
Centralized crypto exchange Gemini appears to be struggling. According to Bloomberg, the exchange’s founders, Tyler and Cameron Winklevoss, have injected $100 million into it.
The exchange earlier tried to attract venture capital money in an informal fundraising round but failed to do so, Bloomberg reported.
Gemini’s troubles come amid a prolonged crypto winter. Asset prices have stayed 70-90% down from their all-time highs for most of the last year, and numerous companies have gone bust.
Gemini has had multiple problems, including a feud with Barry Silbert’s Digital Currency Group and over $900 million belonging to Gemini Earn users stuck with the bankrupt lender Genesis.
But it would be hard to raise money for Gemini without the said issues. According to Galaxy, venture capital activity has been very low for the past half a year.
For example, in the first quarter of 2023, deal sizes and pre-money valuations for crypto venture capital rounds were at their lowest point since the beginning of 2021. Last quarter, the median crypto venture capital deal was $2.5 million on an $18.8 million pre-money valuation.
The first quarter of 2023 also saw the lowest number of new funds launched (14) and the lowest amount of money allocated ($2.23 billion) since the beginning of 2021 and the end of 2022, respectively.
On the Flipside
- There’s no information about the terms of the loan. Gemini has also given no official comment.
Why You Should Care
Gemini is one of the leading crypto exchanges in the industry. If it’s having financial problems, as it seems, it would be another blow to the already struggling crypto industry.
Read more about an active investigation Gemini is facing:
Read more about ETH price action a day before staking withdrawals: