BCGAME - Free 5BTC Daily Bonus!Bitcoin's epic rise and fall of 2018 showed just how volatile cryptocurrencies can be. This triggered a flurry of news articles questioning whether Bitcoin could survive such a crash. And if so, would anyone invest in it again?
The biggest players in this space know that the way to restore legitimacy and gain wider adoption is to attract more traditional institutions.
But these institutions have two main concerns: regulation and management. They want investments to be compatible with the federal government and treated in a transparent manner.
That's where Gemini comes in. It is a US dollar-backed cryptocurrency overseen by the New York State Department of Financial Services, adding legitimacy and making it attractive to traditional financial institutions.
In this article, we will discuss:
What is Gemini (GUSD) token?
Gemini is an Exchange where customers can trade US dollars for cryptocurrencies – including bitcoin , Litecoin , Ether and Zcash . It is also a licensed custodian, which means it can store digital assets on behalf of clients.
Who created it?
Gemini is the brainchild of the Winklevoss twins — yes, the ones who famously got $65 million from Mark Zuckerberg for stealing the idea for Facebook.
The billionaire twins invested part of that payment in bitcoin, got even richer, and created their own purse. They realized in 2014 that US institutions wanted to invest in bitcoin but were blocked because of US law. So they worked to gain regulatory approval and became a New York trust company – a business governed by New York Banking Law.
They said their ability to adopt cryptocurrency with regulatory financial compliance was a "bridge between the old world of money and the new world of money."
a short story
- 2014 – Gemini platform announced
- January 2015 – released in the United States
- October 2015 - New York State Department of Financial Services Trust Letter issued
- October 2016 – Expanded to Asia
- September 2018 – launch of the Gemini Dollar (GUSD)
What's so special about that?
traditional institutions – although Gemini is often compared to competing exchanges like Coinbase and Kraken, it has found a niche in large financial institutions and high volume traders. This is due to their relatively low fees and the fact that trading larger amounts means even lower fees.
Compliance and Regulation – is also attractive due to built-in compliance and regulation. The client's trust funds are held in a bank and insured by the US government, and Gemini is legally obligated as a trustee and trustee. This means that it must meet compliance, anti-money laundering and cyber security regulations as dictated by the state of New York.
Licensed Escrow Agent – Gemini continues to attract institutions because it is a licensed custodian of digital assets. Many US institutions are legally required to hold digital assets with a licensed custodian, so Gemini is an obvious choice for a secure investment in cryptocurrency.
One downside is the relatively small list of supported countries. Gemini is currently only available in the US, Canada, Hong Kong, Singapore, South Korea and the UK. It is also limited to trading the main cryptocurrencies (Bitcoin, Ethereum, Zcash, Litecoin and Gemini dollar).
How does Gemini work?
Gemini is seen as a gateway to the cryptocurrency trade. Using a bank transfer (US) or wire transfer (international), customers exchange US dollars for cryptocurrencies. This is unlike some other platforms that require you to already have cryptocurrency to trade.
Customers can also convert cryptocurrency into US Dollars.
What is Gemini Dollar?
In the fall of 2018, the Winklevoss twins announced the symbol of Gemini itself: the Gemini Dollar (GUSD). Its value is “linked” to the value of the US dollar, so a Gemini dollar is equal to a US dollar.
It is a type of cryptocurrency known as 'stablecoin'. . The idea of a stablecoin is that it is less volatile than a currency like bitcoin because it is directly linked to a stable asset – in this case, the US dollar. Gemini says the Gemini Dollar is 'the world's first regulated stablecoin.' Its exclusive formula leads to dollar stability, adds blockchain and includes US regulation.
The regulation includes frequent audits to make sure it actually maintains that 1:1 value. This solves one of the main pitfalls of Tether, a competing currency that is also pegged to the dollar but lacks transparency. Regular auditing helps build legitimacy and trust in Gemini.
The Gemini dollar also meets the ERC-20 standard, meaning it can be stored and exchanged for other tokens on the Ethereum network or held in a cryptocurrency wallet.
The future
The Winklevoss twins show no signs of slowing down in their quest to bridge the gap between old money and new. The recent inclusion of Litecoin on the exchange shows that Gemini wants to expand options for customers. Bitcoin Cash will likely be added in the near future as well.
Gemini's highly regulated approach may draw criticism from cryptopurists, but it remains highly attractive to customers who crave security and compliance.
