Gemini announced yesterday the upcoming arrival of a new platform focused on derivatives: Gemini Foundation. Furthermore, it has been clearly stated that this platform will not be accessible to customers based in the United States.
Gemini unveils its new derivatives platform
Gemini, the exchange founded by the Winklevoss twins yesterday presented a new derivatives platform: Gemini Foundation. One of the notable facts of this announcement is that this product will be closed to US users.
The reasons for this choice are not clear, but the regulatory vagueness in the United States may be a food for thought, as well as the possible obligations that this would imply with the Commodity Futures Trading Commission (CFTC).
Besides, if it is clearly indicated that Gemini Foundation will not be available in the United States, we can also notice that the countries of the European Union do not appear in the list of geographical areas where this platform will be accessible, without the same precision as for the United States being mentioned. This could therefore hypothetically testify to a desire to comply with the MiCA regulation pending compliance.
👉 To go further — Trade in a decentralized way thanks to the dYdX platform
Trade on the leading DEX
⛓️ A platform at the heart of DeFi
🎧 Listen to this article and all other crypto news on Spotify
A platform focused on derivatives
Gemini Foundation’s core business will be cryptocurrency derivatives.
During the launch, for which no date has yet been revealed, only a perpetual contract on Bitcoin (BTC) will be accessible with a leverage that can be set up to a multiple of 100. Another ETH-based contract will arrive in a second step.
Quotes will be expressed in GUSD, Gemini’s dollar-pegged stablecoin, along with profit and loss and fee billing. On the other hand, investors’ accounts can be topped up in dollars or with the USDC stablecoin for conversion into GUSD at a one-to-one ratio.
For some time, Gemini has been struggling to cross the bear market. Indeed, we have been able to come back in the past to the waves of layoffs, the dispute with Genesis, or more recently to the loan of 100 million dollars which would have been contracted with the founders themselves. Thus, this new product could be a means for the company to move forward and stimulate its growth.
👉 Also in the news — Fundraising in Web3: the 1st quarter sees funding decrease by 82%
Our service dedicated to cryptocurrency investors. Get real-time analytics and optimize your crypto portfolio.
Source: Gemini
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.