Social net worth… The president of US crypto exchange Gemini, Cameron Winklevoss (refresher: sued Mark Zuckerberg over FB's origins), has new public beef. On Monday, Winklevoss accused Barry Silbert, the CEO of crypto conglomerate DCG, of "unconscionable" behavior. Winklevoss says that DCG's crypto-lending subsidiary, Genesis, won't return $900M that belongs to his Gemini customers. He gave Silbert a Sunday deadline to commit to making his customers whole.
Crypto lending meets contagion… Crypto is a highly leveraged industry (think: using borrowed assets to make trades). So when big players implode, contagion can spread. Genesis isn't the only crypto lender to freeze up during crypto winter. In June, Celsius paused redemptions on customer loans with advertised yields up to 18% — and filed for bankruptcy a month later. And in August, Singapore-based lender Hodlnaut froze customer withdrawals.
Crypto stopped being polite… and started getting real. Crypto winter and subsequent contagion could deal final blows to the industry's WAGMI ("we're all gonna make it") ethos. Now, at the very real risk of not making it, it's every firm — and customer class-action lawsuit — for itself. Winklevoss' public calling out of Silbert "for the final time" is what happens when the crypto tide goes out and everyone scrambles for a boat.