Breaking: Big news in Crypto land!

in crypto •  6 years ago 

There is likely a very big change coming to crypto land.

Today I received an email that likely is going to play a very big role going forward.

It is most likely going to be forgotten about and dismissed at first, however, over time it will likely mark one of the most important changes we see in all of 2018.

What am I talking about you might be wondering?

I'm talking about this!

One giant leap for crypto-kind!

Today I received an email from the Gemini cryptocurrency exchange.

You know, the one being run by the Winklevoss twins?

In the email they said that they had now secured insurance for all the holdings in their hot wallet.

Come again?

Yes, the Gemini exchange now has insurance coverage for all the holdings in their hot wallet, which means that customer funds are now basically protected on the same level as that of a traditional brokerage exchange.

Wow!

Why this matters:

In the past when an exchange's hot wallet was hacked, customer funds were often stolen before the customer even knew they were missing.

The customer was most likely out of luck unless the exchange decide to cover the losses themselves, which we have been seeing more of lately.

However, if something like that were to happen now on the Gemini exchange, customers are fully covered by insurance.

This is exactly what has to happen in order for the masses and big time institutions to invest in this space.

When people are asked why they don't own any bitcoin, most that know anything about it will respond with something along the lines of them not trusting the cryptocurrency exchanges.

Why should they?!

It's been worse than the wild west out there for anyone holding anything on an exchange.

(Source: https://bcfocus.com/news/gemini-first-bitlicensed-exchange-new-york-state-approves-privacy-coin-trading/13091/)

This changes everything!

Now, with insurance on board, people will have their holdings protected on another level that hasn't been available up until now.

This is likely a feature that is going to be adopted by many exchanges going forward.

If an exchange doesn't insure their hot wallet holdings, people are simply going to go to the exchanges that do.

They will speak with their feet, which in turn will cause just about all of the major crypto exchanges to start insuring their holdings as well.

The domino affect will then improve the investing place for everyone.

You heard it here first, this is the beginning of all major crypto exchanges being insured going forward.

Stay informed my friends.

Image Source:

https://blog.zebpay.com/is-storing-bitcoin-with-zebpay-safe-ab44bb7de5b9

Follow me: @jrcornel

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Is Gemini decentralized?
Or is it merely a "zero fees" exchange which charges its users by requiring them to buy its hyperinflating currency instead?
Which currencies does it have listed?

I believe it has fees but not sure what you are talking about when you say hyper-inflating currency?

I forgot the name of the exchange, but I saw that a self proclaimed "zero fees" exchange intends to fund itself by issuing its own currency and increase its quantity, and if I comprehended it correctly, require its users to pay with its currency instead of charge them a portion of their trade.

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  ·  6 years ago Reveal Comment

You got a 50.00% upvote from @sleeplesswhale courtesy of @stimialiti!

You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!

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  ·  6 years ago Reveal Comment

You got a 50.00% upvote from @sleeplesswhale courtesy of @stimialiti!

That sound very interesting

I think so as well.

Great news @jcornel. Thanks for being on top of it. Do you know if my accounts at Robinhood are insured?

That I am not sure. If they aren't, they will be soon. Big news out of TD Ameritrade today as well.

Is Robinhood decentralized?
Or is it merely a "zero fees" exchange which charges its users by requiring them to buy its hyperinflating currency instead?

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  ·  6 years ago Reveal Comment
  ·  6 years ago Reveal Comment

You got a 57.14% upvote from @sleeplesswhale courtesy of @stimialiti!

You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!

  ·  6 years ago Reveal Comment

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  ·  6 years ago Reveal Comment

Wow, that's really amazing news. The Wink brothers do it again! Cheers to them and to you for sharing this great accomplishment

The crypto space truly is lucky to have them. They have a lot of ties to traditional finance and are helping bridge the gap.

But the insurance payout would be in $USD rather than crypto, yeah?

Posted using Partiko iOS

Likely at the market value at the time of the hack, if there was one.

Indeed a good new which will put more certainty for new investors.

  ·  6 years ago (edited)

I agree with that. Hopefully it helps new users.

yeah one of the best news indeed after a long time ;)

this will change many things by the way ;)

I am sure it will be passed over by most, but I think it is very big news.

That goes without saying

It might not be reflected in the price for a while, but eventually this likely marks the turning point for getting more money and people in to crypto.

yep many are looking for the security before they invest in, while they will get what they want, so yeah might be one of the news that many are looking for. Lets see what happens .

  ·  6 years ago (edited)

You think one of the best news?

The things that have been going on in Crypto compared to those this seemed to me the best for now

That is a very positive news, I believe other exchanges should also follow.

I think they will. This is likely the first of many.

This is great and could also signal confidence in their approach to custody solutions which we now a certain sector out there is looking closely at; institutions. This could be a great catalyst for demand although Gemini is limited to a handful of assets. However, this is a great start!

Yep. As I mentioned in the post I think this is just the beginning of all other major exchanges offering insurance coverage as well. While the news itself isn't huge, what it represents is.

I like the twins and hope they eventually succeed with an etf. They've done so much for crypto and should be rewarded for believing in the etf market.

I agree completely. Not sure they will be the first to get an ETF approved, but they are doing a lot to help shape the crypto investing industry for sure.

Great News and a big Milestone for Crypto Markets. Uncertainty is a huge risk factor and to have your coins insured against theft or lost is very important if crypto attracts more big capital.

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Exactly. Regular investors don't want to put large amounts of money in due to the risk, let alone institutions that manage millions and billions. This is a game changer.

Sounds great. Makes it all more legit. Thanks for the heads up on this @jrcornel

I agree. More people will be willing to put money in once this is a norm for exchanges.