Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’
The post Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’ appeared first on Coinpedia Fintech News
The unfolding drama in the cryptocurrency world sees Gemini Earn creditors in a state of turmoil. These individuals are up in arms against a reorganization plan proposed by Gemini Trust, which suggests a significant cut in their Bitcoin payouts. The contentious plan, revealed in a detailed email from Gemini Trust on December 13 and currently up for a vote, offers a grim recovery scenario for the creditors.
At the heart of the dispute is the proposal’s terms, which state that creditors would receive payouts based on their Earn crypto balances as of January 19, 2023. This date is notable when Genesis Global Capital, Gemini’s cryptocurrency lending partner, filed for bankruptcy. According to Bloomberg ETF analyst James Seyffart, the proposal is “brutal” considering the disparity between cryptocurrency values then and now.
For instance, Bitcoin and Ether were valued at $20,940 and $1,545, respectively, on January 19. However, their prices have surged since then, reaching $42,750 and $2,250, respectively. In a worst-case scenario, creditors could receive only about 30% of the current market value of their assets.
Public Backlash on Social Media
Gemini’s public post on X (formerly Twitter) about this proposal was met with strong opposition. Users like Andrew Aleid and Leslie voiced their dissatisfaction, with Leslie accusing Gemini Trust of deceit and demanding full repayment. Their sentiments reflect a broader dissatisfaction among the creditor community.
Gemini Earn was a unique program allowing users to earn interest on their cryptocurrency holdings. Before Genesis Global Capital’s bankruptcy, Gemini had withdrawn substantial funds from Genesis to support this program. The current plan aims to recover around $1.6 billion from Genesis for Earn users.
The Voting Process and Future Outlook
Creditors have until January 10, 2024, to cast their votes on this plan. If accepted, the bankruptcy court will have the final say on February 14, 2024. The plan’s acceptance or rejection will significantly impact the creditors, determining their recovery percentage and the timing of any potential distributions.
To assist creditors in making an informed decision, Gemini Trust has released a comprehensive set of FAQs. These include insights into the plan’s implications, the voting process, and the potential outcomes of the bankruptcy proceedings. The FAQs emphasize that the proposal’s acceptance could result in a range of recovery for creditors, estimated between 61% and 100% of the value of their Earn balance as of January 19, 2023.
As the February 14, 2024, court date approaches, all eyes will be on the outcome of this vote and its implications for the future of cryptocurrency lending and investment.
Read More
Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’
The post Gemini Earn’s Proposed Bitcoin Repayment Plan is ‘Brutal’ appeared first on Coinpedia Fintech News
The unfolding drama in the cryptocurrency world sees Gemini Earn creditors in a state of turmoil. These individuals are up in arms against a reorganization plan proposed by Gemini Trust, which suggests a significant cut in their Bitcoin payouts. The contentious plan, revealed in a detailed email from Gemini Trust on December 13 and currently up for a vote, offers a grim recovery scenario for the creditors.
At the heart of the dispute is the proposal’s terms, which state that creditors would receive payouts based on their Earn crypto balances as of January 19, 2023. This date is notable when Genesis Global Capital, Gemini’s cryptocurrency lending partner, filed for bankruptcy. According to Bloomberg ETF analyst James Seyffart, the proposal is “brutal” considering the disparity between cryptocurrency values then and now.
For instance, Bitcoin and Ether were valued at $20,940 and $1,545, respectively, on January 19. However, their prices have surged since then, reaching $42,750 and $2,250, respectively. In a worst-case scenario, creditors could receive only about 30% of the current market value of their assets.
Public Backlash on Social Media
Gemini’s public post on X (formerly Twitter) about this proposal was met with strong opposition. Users like Andrew Aleid and Leslie voiced their dissatisfaction, with Leslie accusing Gemini Trust of deceit and demanding full repayment. Their sentiments reflect a broader dissatisfaction among the creditor community.
Gemini Earn was a unique program allowing users to earn interest on their cryptocurrency holdings. Before Genesis Global Capital’s bankruptcy, Gemini had withdrawn substantial funds from Genesis to support this program. The current plan aims to recover around $1.6 billion from Genesis for Earn users.
The Voting Process and Future Outlook
Creditors have until January 10, 2024, to cast their votes on this plan. If accepted, the bankruptcy court will have the final say on February 14, 2024. The plan’s acceptance or rejection will significantly impact the creditors, determining their recovery percentage and the timing of any potential distributions.
To assist creditors in making an informed decision, Gemini Trust has released a comprehensive set of FAQs. These include insights into the plan’s implications, the voting process, and the potential outcomes of the bankruptcy proceedings. The FAQs emphasize that the proposal’s acceptance could result in a range of recovery for creditors, estimated between 61% and 100% of the value of their Earn balance as of January 19, 2023.
As the February 14, 2024, court date approaches, all eyes will be on the outcome of this vote and its implications for the future of cryptocurrency lending and investment.
Read More