Bitcoin trading volume at the newest Bitcoin exchange, the Winklevoss twin’s Gemini, has surged 40,000% in the three weeks since its opening. Despite these numbers, the overall volume at the exchange remains trumped by that of other exchanges.
Targeting the stock market investor, Gemini commands considerable per transaction volumes. A high percentage of transactions on the website are comprised of 50 bitcoins or more.
The makeup of the Gemini customer is unknown. While some believe certain investors were waiting for a fully-regulated and insured exchange to operate in Bitcoin, others point out that Coinbase has played that role for sometime now. While Coinbase’s marketing has been targeted largely at the Bitcoiner, Gemini appears to have focused more-so on market investors.
Gemini remains available in limited US states, having suffered long delays obtaining BitLicense in New York. As Cameron Winklevoss told Vice:
“We just don’t feel comfortable launching and don’t feel it’s right to our customer base without meeting whatever bar is set by regulators. We just don’t think it’s fair to bring people onto a platform before we’ve gone through that process. I think that process exists for a reason, to protect consumers and our future customers, and make sure best practice and policies are involved. So that’s our philosophy. That’s sort of what we’re doing, and that doesn’t change based on other people’s actions or behaviors. That’s been our plan and mission.”
The two Harvard grads became famous after suing Mark Zuckerberg in 2004 claiming they stole his idea. They’ve become big Bitcoin proponents since. Tyler Winklevoss told Vice:
“I think we loved the elegance of it, the simplicity of it. It’s obviously a complex idea, and it’s hard to wrap your head around it, but this idea that you can send a (monetary) value like you send an email seemed right. It seemed like something that should have existed a long time ago, and it hadn’t until this point. So obviously you first hear about something, and you should be a little skeptical and you start digging in and you realize this is phenomenal, I can send some value anywhere in the world right now at any time and it would get to them fairly instantly and for free. And if I tried to send them money, it would be a horrendous experience…
It wasn’t immediately day one our whole lives revolved around Bitcoin, but today, the most important things in our lives right now are Bitcoin related — it’s Gemini and COIN. So it crept up on us pretty quickly, and now it consumes us.”
The parent company of Gemini, Gemini Trust Company, LLC, is regulated as a fiduciary, meaning they can service both individuals and institutions. Compliance has been one of the company’s main principles, likely making it more attractive to certain investors.
Read More: Gemini Bitcoin Exchange Launches
“[W]e take licensing and compliance very seriously and think that asking for permission, rather than forgiveness is the right approach in this case — and we think our customers will agree,” the company states.
Gemini is available to clients in 26 states.
Featured image from Shutterstock.
Last modified: May 21, 2020 10:59 AM UTC