Gemini Earn users have recently been hit with disheartening news about the value of their crypto holdings. According to a reorganization plan proposed by defunct crypto lender Genesis, these users might only recover 61% of their pending Earn balance as of January 19, 2023. In this article, we will delve into the details of this plan and explore the concerns raised by Gemini Earn users.
The disclosed plan has sparked outrage among Gemini Earn users, who argue that it falls short of their expectations. Some users have pointed out that the promised 61% recovery rate could be misleading. Upon careful analysis, calculations suggest that users may receive an actual return of only 30.5% of their assets, taking into account previous aspects of the plan and the designated petition date. This discrepancy is a significant blow for users who were hoping to regain a larger portion of their crypto holdings.
Another concern raised by Gemini Earn users is the complexity of the 374-page document detailing the reorganization plan. Many users have expressed their difficulty in comprehending the plan and feel that they may require assistance to fully understand its implications. The sheer length and technical language of the document make it an arduous task for most users.
The plan put forward by Genesis has been labeled as “brutal” by Bloomberg ETF analyst James Seyffart. He highlights the potential impact on Gemini Earn users, stating that even in the best-case scenario of 100% recovery, it is still a significant loss considering the current prices of Bitcoin and Ethereum. With the value of these flagship assets skyrocketing in recent times, users were hopeful for a more favorable outcome.
One aspect that further complicates the situation is the possibility of redemptions being paid in fiat currency. If this were the case, users could receive significantly less than the current dollar value of their assets. This could lead to further discontentment among Gemini Earn users, as they were anticipating recovering a greater portion of their crypto holdings.
Gemini’s website update has clarified that the recoveries for Earn users will be in the form of the digital assets they loaned to Genesis to the greatest extent possible. This indicates that users will not receive a conversion to fiat currency but will instead receive the same digital assets they had initially loaned. While this may bring some relief to users, it still falls short of their expectations given the depreciation in the value of these assets over time.
Gemini has outlined that Earn users must vote on the reorganization plan before January 10, 2024. If the plan is approved, there will be an initial distribution of Genesis’ assets to Earn users. Simultaneously, Gemini will continue to pursue legal actions against Genesis in an attempt to recover $1.6 billion for the benefit of its users. However, if the plan is rejected, Genesis will be forced to explore alternative options, which could potentially result in further delays in recovering assets for users.
The reorganization plan proposed by Genesis has left Gemini Earn users deeply disappointed. With the prospect of only recovering 61% of their pending Earn balance, users feel let down and frustrated. The complexity of the plan, potential redemptions in fiat currency, and the current value of Bitcoin and Ethereum all contribute to the dissatisfaction expressed by users. As the voting deadline approaches, users face a crucial decision that could determine the future of their crypto holdings.