Should i use gemini earn full#

Stocks and commodities are more normally bought and held for longer.

In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.ĬFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities.

Should i use gemini earn full#

But with traditional trading, you buy the assets for the full amount. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.ĬFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. Genesis argued the transactions were essentially loans and requested the court to dismiss the complaint or, alternatively, strike the SEC’s requests for a permanent injunction and disgorgement. You can still benefit if the market moves in your favour, or make a loss if it moves against you. The companies’ legal filings contend that Gemini Earn should not be classified as a security. The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD. Use common sense.The difference between trading assets and CFDs I know everyone is angry but you guys are blaming and focusing on the wrong companies. I generally understand that the coins are being borrowed, which can involve potential default. Depositing DAI into Gemini Earn at 7.4 interest seems like a good idea, especially if you want to avoid volatility in non-stable coins. Plain and simple.įTX is a different story, they legit lied and committed fraud. Gemini Earn Pros/Cons I’m a crypto newbie. They protected themselves pretty well with disclosing the risks and what we, the consumers, we're getting into. Now if Gemini lied, committed fraud, promoted false advertising, THEN YES, SUE THE HELL OUT OF THEM. That's like saying, you buy cigarettes at a store, get cancer, then blame the store for selling you said cigarettes- you should be blaming the cigarette companies for making them in the first place! Even then, you can't blame the cigarette companies because they listed on the box that it can cause cancer! No one forced you to buy the cigarettes, just like no one forced you to use Earn. Gemini never hid behind anything! It was all present and available information for everyone to read and see! It's up to the consumers to do your own DD. I'm not defending Gemini, I'm just speaking logic. If earn gets redeemed next week it would be a miracle and I would go by myself a lotto ticket immediately. Then I later learned they also engaged restructuring counsel and advisor. I want my earn back as much as anyone but after I heard Genesis tried to get $1B loan and couldn’t last weekend I just knew it’s way more serious than they’ve been letting on Twitter. Your funds may be more secure when you lend them out with BlockFi.

However, they may lend out your funds via unsecured loans, while BlockFi overcollateralizes your loans. Genesis lending is a separate entity so they can kill that without affecting their OTC business. Gemini Earn allows you to earn interest on a larger number of cryptocurrencies compared to BlockFi. The cash flow off it is probably less than $300M a year now? So how are they gonna afford another $1B of liabilities? And if they can’t afford it, who is going to lend them in this market after FTX with $300M cash flow and a preexisting $1B liability from 3AC? It would be over $2B of liabilities for a company whose sole asset is crypto in a macro bear mkt with just $300M cash flow at best.Īlso, Genesis OTC business is Genesis trading. They don’t own all $10B, that’s trust money for their own clients. Their entire asset holding is basically GBTC which is losing value as we speak and valued at $10B. How will the parent company afford it? They already handed over $1B to Genesis for 3AC.