Tyler and Cameron Winklevoss, the billionaire co-founders of Gemini Trust Co., have loaned USD 100 million to their own crypto exchange, according to Bloomberg.
The move comes as Gemini faces difficulties in raising funds from outside investors due to volatile market conditions. The loan will be used for operations and expansion, including the potential launch of an international crypto-derivative exchange. Gemini has been expanding its European presence recently, acquiring licenses in Italy and Greece, and launching services in other countries.
Gemini has faced some challenges lately, including cutting its workforce by 10% in January, as well as reducing staff levels by 10% in June and 7% in July last year. The loan from the Winklevoss twins comes at a time when venture capitalists are becoming increasingly wary of the volatile cryptocurrency industry, as evidenced by the 80% decline in funding for crypto companies during the first quarter of 2023 compared to the previous year. Nevertheless, certain crypto giants, such as Bitget, continue to invest heavily in the industry, with the launch of a USD 100 million investment fund to support Web3 projects.
The loan from the Winklevoss twins highlights the challenges facing crypto exchanges as they try to secure funding in a market that has become increasingly volatile and uncertain. Gemini’s focus on expanding into new markets is likely to face further headwinds as regulatory scrutiny of the industry intensifies, but the exchange’s founders are betting that their business can weather the storm and continue to grow.