Gemini Earn program clients now find themselves in an unforeseen beneficial situation after a advertisement which promises to reimburse 100% of your digital assets “in kind.”
Gemini Earn program clients now find themselves in an unforeseen beneficial situation after a advertisement which promises to reimburse 100% of your digital assets “in kind.”
The involvement of Genesis with Gemini
The Genesis Bankruptcy saga has been a thorn in the side of many of its creditors and cryptocurrency enthusiasts since its inception. For those participating in Gemini’s Earn program, which allowed users to lend their digital assets in exchange for interest, the interruption of withdrawals in November 2022 due to the bankruptcy of Genesis was a blow.
Many users found themselves in limbo, not knowing if they would see their assets again.
However, the recent Gemini announcement has brought a ray of hope to those affected. The company stated that if the agreement in principle is approved by the bankruptcy court, Earn users will receive 100% of their digital assets in kind.
This means that if a user has lent a Bitcoin, they will receive a Bitcoin back, along with any appreciation in value since entering the Earn program.
Implications amid the Bitcoin boom
The timing of this announcement couldn’t be more ideal, especially considering the current rise in Bitcoin value. As Bloomberg analyst James Seyffart says, he pointedThe difference in value between when withdrawals stopped in 2022 and now is staggering.
For example, the price of Bitcoin has skyrocketed from $20,000 to $61,000, while Ethereum has jumped from $1,500 to $3,500. This means that users will receive more than they initially lent, potentially making substantial profits in the process.
The promise of a coin-by-coin recovery is a ray of hope for Earn users who have been patiently waiting for a resolution. Gemini’s commitment to ensuring that users receive their assets back in full, although born from a settlement with the New York Department of Financial Services (NYDFS), is commendable and speaks volumes about the company’s integrity in dealing with challenging situations.
While the announcement is certainly cause for celebration, it is essential to temper expectations with a dose of reality. Gemini has advised that the agreement in principle is subject to final documentation and approval by the bankruptcy court.
Additionally, the process could take up to two months to complete, with users expected to receive approximately 97% of their assets in kind within that time frame. The remaining balance will arrive within the next 12 months.
