A crypto phenomenon has claimed that a famous Bitcoin exchange has under $100 million in reserves. His Twitter posts spread FUD against the central stock market.
This Bitcoin exchange is building up reserves
Twitter crypto phenomenon WhaleChart made frightening claims about the UK-based crypto exchange Gemini. On December 10, he posted a warning on Twitter that Gemini had less than $100 million in stablecoins left in their wallets. The tweet received over a thousand likes and countless comments in a short time.
🚨 WARNING: Crypto exchange #Gemini almost has less than $100m worth of Stablecoins left on their exchange. Outflow continues.
— Mr. Whale 🐳 whalechart.org (@WhaleChart) December 9, 2022
WhaleChart did not back up its claims with any real sources. Still, his warning was enough to draw attention on social media. A Twitter user commented that its bankruptcy would be disastrous for the crypto market, given that Silvergate Capital Bank, the leading US financial institution, is sponsoring the exchange.
In particular, since the FTX bankruptcy, crypto investors have been looking for possible red flags in the activities of major companies. Earlier last month, there was speculation that KuCoin was short of funds.
Speculations spread about KuCoin and Gemini
On-chain researcher Lookonchain partially confirms these suspicions, based on available data from crypto analytics firm Nansen. Lookonchain noted that KuCoin witnessed an extreme stablecoin outflow of over $235 million in seven days. Nansen’s data also proves that KuCoin is the stock market that has pulled back even more than the embattled FTX.
Some of our fans in the telegram group are worried about #Kucoin's shortage of funds.
We analyzed the stablecoins hold by #Kucoin and found that in the past 7 days, there were not too many stablecoins flowing out from #Kucoin.
1.
A short thread.🧵
— Lookonchain (@lookonchain) November 9, 2022
However, on-chain data revealed that KuCoin only moved $300 million worth of USDT from the Ethereum network to the Tron network. Interestingly, the largest crypto exchange Binance is constantly encountering FUD searches every day, despite publishing an audited proof of financial reserve and having the best market rankings. In particular, Gemini is among many businesses that have yet to release details of its reserve. The exchange also has close ties to Genesis, which is on the verge of bankruptcy.
Gemini chases $900 million from Genesis
cryptocoin.com We have included what happened between the two in this article. Gemini is now trying to recover $900 million in loans to crypto platform Genesis and its parent company Digital Currency Group (DCG). The Bitcoin exchange remained in credit after Genesis fell into trouble due to Sam Bankman-Fried’s FTX bankruptcy.
Following the collapse of FTX, Genesis announced that it was temporarily suspending withdrawals. In a statement on Twitter, he said “abnormal withdrawal requests” exceeded his “available liquidity”. The company also hired investment bank Moelis & Company to explore options, including a potential bankruptcy. Meanwhile, just like Gemini, Grayscale refuses to share its reserves due to “security concerns”. This leads to speculation about the financial health of companies.
