A recent update from defunct crypto lender Genesis has revealed that users of the Gemini Earn platform might only be able to recover 61% of the value of their crypto holdings as of January 19, 2023. This news has sparked widespread outrage among Gemini Earn users, who are criticizing various aspects of the proposed plan. The plan, which was disclosed in a 374-page document, has been labeled as “brutal” by Bloomberg ETF analyst James Seyffart.
According to the reorganization plan, Genesis estimates that Gemini Earn users could potentially recover anywhere between 61% and 100% of the value of their pending Earn balance as of the bankruptcy filing date. However, some users have expressed concerns that the promised 61% may be misleading. They argue that due to previous aspects of the plan and the designated petition date, the actual return may only be 30.5% of their assets. This calculation appears to be based on the price of Bitcoin at the petition date compared to current prices.
One of the main criticisms of the proposed plan is its complexity. Many users have highlighted the difficulty in comprehending the 374-page document and suggest that they may require assistance to fully understand the terms and conditions. This complexity adds another layer of frustration for users who are already disappointed with the potential loss of their crypto holdings.
Another concern raised by users is the possibility of receiving payments in fiat currency instead of digital assets. In the update, Gemini states that users will receive the same digital assets they loaned to Genesis to the greatest extent possible. However, if redemptions were to be paid in fiat, users may receive significantly less than the current dollar amount of their assets. This uncertainty further adds to the frustration and anger of Gemini Earn users.
Gemini has announced that Earn users must vote on the proposed plan before January 10, 2024. If the plan is approved, there will be an initial distribution of Genesis’s assets to Earn users. Additionally, the exchange has vowed to pursue legal actions against Genesis to recover $1.6 billion for the benefit of Earn users. However, if the plan is rejected, Gemini warns that alternative options will be explored, which could result in further delays in distributions.
The news of the proposed plan has sent shockwaves throughout the Gemini Earn community, with many users expressing their disappointment, anger, and frustration. The potential loss of their crypto holdings, coupled with the complexity of the plan and the uncertainty surrounding potential fiat payments, has left users feeling betrayed and let down by the platform.
The reorganization plan put forth by Genesis has created a wave of outrage among Gemini Earn users. The potential recovery of only 61% of their crypto holdings has generated strong criticism and skepticism. The complexity of the 374-page document, coupled with the possibility of receiving fiat payments, has further intensified the frustration and anger among users. As the voting process continues, the fate of Gemini Earn users hangs in the balance, with the potential for significant delays and further disappointments.