Crypto exchange Gemini burnt one million GUSD tokens; only 4.1 million remaining

Crypto exchange Gemini burnt one million GUSD tokens only 4.1 million remaining

On December 3, the famed cryptocurrency exchange Gemini burnt one million GUSD tokens. The news was reported on a Twitter account called Whale Alert, which stated that around one million GUSD stablecoins (1.035M) were burnt by the exchange. This number represents about one-fifth of the total supply of GUSD tokens, and there are only around four million (4M) GUSD tokens remaining in circulation.

This is a significant development as the Gemini exchange is grappling with growth issues. So, when Gemini burnt one million GUSD tokens, it will certainly affect the overall supply of the tokens in the market. Their aim to regulate the supply to shore up the otherwise falling prices.

Gemini burnt one million GUSD tokens only to get dud results

Ever since its launch in September 2018, Gemini is plagued with issues. It has underperformed the market and fallen significantly compared to its launch value. The poor performance can be attributed to the fact that the underlying exchange operations have not performed up to the mark.

From a regulatory point of view, the token hasn’t garnered any bad press. It was approved timely by the New York Department of Financial Services. The token was backed by a sufficient number of United States dollars that are securely held at designated banks and clear the FDIC regulations with applicable limitations.

However, being compliant with authorities wasn’t enough for GUSD. The initial euphoria as died down and the current trading activity is muted. It has fallen significantly from a historic daily trading volume high of two forty nine million dollars ($249.4M) to the current insignificant levels of around three million dollars ($3.3M).

This recent news of Gemini burnt one million GUSD tokens hasn’t gone down well with its investors. The Block’s Frank Chaparro stated that GUSD is the biggest failures of the crypto realm in 2019. Altcoins have caused a great deal of pain to investors in 2019, and the situation is looking bleak going ahead.

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Gurpreet Thind

Written by Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.