Gemini crypto exchange falls prey to FTX contagion
FTX’s decline has rattled the crypto market. Digital asset lending firms and exchanges are at the receiving end and falling like houses of cards. The Gemini crypto exchange of the Winklevoss twins has also become one of the victims of FTX contagion.
On 16 November, Gemini's Earn product experienced delays in withdrawals due to an outage. Curiously, the outage occurred just after its partner, Genesis Global, suspended withdrawals on its platform. Genesis took the step in the wake of the fall of the Sam Bankman-Fried corporation.
Earlier, the firm acknowledged its partner’s suspension of withdrawals in a Twitter thread. It also announced that its team is working with the crypto lender to ensure quick recovery of funds of the Earn program.
It assured its clients that these events would not affect the activities on the Gemini platform. However, a couple of hours later, it experienced an outage that shook investors' trust.
Gemini crypto exchange outage caused $485m outflows
The server outage on the platform halted the operations affecting the withdrawals and deposits. However, it has only been down for about an hour. Per its official statement on Twitter, the disruption occurred at its primary databases due to the Amazon Web Services EBS.
The exchange's team swiftly recovered it and announced it was "fully back online".
Moreover, it reassured its users about the safety of their funds. Nonetheless, the disruption created panic among the users, which resulted in mass outflows.
According to Nansen, the blockchain insights firm, more than $485 million has been withdrawn from the exchange in the past 24 hours. This is the highest outflow for any exchange in the same period. On the other hand, the inflows for the platform were only $78 million.
The unstoppable FTX contagion
Gemini and Genesis Global are just some digital asset service providers that suffered after the FTX collapse. Various other firms are moving towards insolvency. Crypto lenders BlockFi and SALT are recognised names among them. This collapse may affect many other significant firms in the future as investors' confidence seems to be shaken.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.
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