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Weekly Market Update

031524

FTX Customers To Be Paid Back, Robinhood Receives Wells Notice, and Marathon Digital To Join S&P SmallCap 600

Crypto Market Slides, Then Rallies After Federal Reserve Holds Steady

BTC Halving Brings Market Optimism and Record Mining Rewards, Crypto Lobbyists Sue SEC

BTC Takes a Hit, Spot BTC ETFs Launch in Asia, and Geopolitical Tensions Heat Up 

The Olympics. The World Cup. The US presidential election.

A Bitcoin halving event. 

Each draws the world’s attention every four years. Each generates intense debate. 

For now, a BTC halving event might bring in a slightly smaller contingent than a US presidential election or the Olympics. However, it’s still a momentous occasion. The debate over how the latest halving, which is expected Friday, will impact the price of BTC has raged on for months. 

Some analysts have speculated the halving could send the price of BTC skyrocketing. Others have argued the halving was priced in during BTC’s surge in price over the past year-plus. With the halving looming, let’s review what it entails and take a closer look at the debate.

## What is a Bitcoin Halving Event?

A halving is when BTC’s underlying blockchain cuts in half the availability of new rewards. It occurs when miners add 210,000 blocks to the network–usually every four years–and is meant to limit the amount of BTC supply in the market, keeping inflation down but cutting into profit margins for miners. 

As part of the latest halving, the block reward–the monetary incentive miners receive for validating transactions on the blockchain– will drop to 3.125 BTC, down from 6.25 BTC during the previous halving event in 2020 and from 12.5 BTC in 2016. 

Satoshi Nakamoto, the pseudonym for the person or group who founded Bitcoin in 2009, capped the total BTC that will be produced at 21 million. And miners haven’t reached that threshold yet. Analysts estimate that there was roughly 19.68 million BTC circulating in the market as of April. As a result, halving events will continue to occur every four years until 2140.

## The Bull Case for the Halving 

Some BTC bulls predict the price of BTC will hit $150K by the end of 2024 following the latest halving event. After all, BTC has surged each time the rate of new supply has diminished.  

Consider that in 2012, the price of BTC jumped 90x from the day of the halving to the top of the cycle. In 2016, it jumped 30x from the day of the halving to the top. And in 2020, it jumped from 8x from the day of the halving to its peak.

BTC bulls insist that limiting the supply of BTC has helped it retain its value over time and arguably made it more resistant to inflationary pressures faced by fiat currencies. Now, increasing participation from retail and institutional actors is driving up the price because of simple supply-and-demand economics. As with precious metals such as gold or silver, limiting new supply makes BTC more valuable. 

“Everything went up so fast already this year, there’s just a lot of activity, a lot of adoption, new regulation, ETFs, the halving, miners needing to get out,” [Gemini COO Marshall Beard told CNBC](https://www.cnbc.com/2024/04/08/ripple-ceo-crypto-market-to-double-in-size-to-5-trillion-in-2024.html).

“You’re going to see violent moves up and down until that new all-time high, which I think will be $150,000,” Beard added. “It probably happens this year. I think it moves so fast ... and I think that momentum, the supply shock, it moves crazy quickly.”

Claire Ching, Head of Institutional at Gemini, said the hype about the upcoming halving is likely outpacing the impact but acknowledged she’s still bullish overall. 

“I'm increasingly in the camp that it's more narrative this time around,” she said. “Daily supply will be halved, but as a percentage of average daily volume, it's an insignificant amount. The price of BTC will remain skewed on the demand side of the equation, with ETFs and the institutionalization of bitcoin being a big driver of that.”

## The Bear Case for the Halving 

On the flip side, there are no guarantees a halving will push BTC’s price up and to the right. Over the past year, the price of BTC has surged more than 100%, in part because of anticipated interest rate cuts from the Federal Reserve and a massive inflow of capital into spot BTC ETFs.

Predicting BTC price swings is inherently difficult, but some analysts maintain BTC will face significant pressures post-halving because it will make mining less profitable. 

Markus Thielen, head of research at 10x Research, said in a note that the halving could [lead to a $5B selloff from miners post-halving](https://www.thestreet.com/crypto/markets/bitcoin-halving-could-drive-5-billion-liquidations-research-firm-warns). And he's since sold out of his tech and crypto positions, a[rguing both are at a crucial tipping point](https://cointelegraph.com/news/stocks-crypto-edge-significant-correction-10x-research) because of delayed interest rate cuts, inflation, and high bond yields.

“The overhang from this selling could last four to six months, explaining why Bitcoin might go sideways for the next few months — as it has done following past halvings,” Thielen said.

Thielen took his argument a step further, saying BTC liquidations could amount to roughly $100M bitcoin per day when miners sell their recent acquisitions post-halving, leading to a supply-and-demand imbalance.

Said Thielen: “Other miners will likely follow a similar strategy to liquidate part of their inventory gradually.”

In anticipation of the halving, [some mining companies have built reserve funds](https://www.wired.com/story/bitcoin-miners-halving/) to combat the drop in profitability. But others that have struggled to break even in the current environment will likely face additional strain in the coming months.

The price of BTC had dipped more than 2% this week as of Friday at 2 pm ET, hovering above $64K. 

*This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.

BTC Halving Gif

Unpacking the Arguments Over Upcoming Bitcoin Halving Event


Today, Real Bedford Football Club (RBFC) owner Peter McCormack announced that Winklevoss Capital, the investment firm owned by Gemini founders Cameron and Tyler Winklevoss, has made a $4.5M bitcoin investment into the football club. The investment is the largest ever made into a football club in the United Kingdom outside of the professional leagues. Following this investment, Cameron and Tyler will assume the role of co-owners of RBFC alongside Peter McCormack.

Peter McCormack is a Bedford resident who is well known for his podcast “What Bitcoin Did.” Since purchasing RBFC in 2021, he has made significant progress towards his goal of leading the team into the Premier League. Real Bedford won a promotion from the 10th tier to the 9th tier in their debut season and are currently at the top of the table this season, looking to achieve a back-to-back promotion from the 9th tier to the 8th tier. 

Cameron, Tyler, and Peter all share a deep conviction in bitcoin and its ability to help supercharge RBFC’s quest to make it into the Premier League. Tyler and Cameron also understand first-hand the transformative power of sport. To that end, this investment will continue to support RBFC’s community-building approach to football now and in the future. And it follows a long-term [partnership between Gemini and RBFC](https://www.gemini.com/blog/community-bitcoin-real-bedford-fc-sponsorship) after initially announcing Gemini’s sponsorship of the football club in January 2022, and will be deployed strategically through the following initiatives: 

- The establishment of a bitcoin treasury to secure the club’s long-term ambitions
- The development of a new training center
- The launch of a football academy to nurture local talent
- Continued support for girls’ and youth football
- An increase in funding for the club's hardship fund, which will ensure that no child in Bedford misses out on the opportunity to play football due to economic reasons

RBFC reflects the community nature of bitcoin by developing local Bedford talent and fostering a welcoming and supportive environment, creating opportunities for aspiring footballers, and promoting the sport's growth within the Bedford region. This year RBFC introduced the Real Bedford Ladies, who are also likely to achieve promotion to the next tier and sit at the top of their league. 

We are proud to continue to support RBFC as they bring together multiple pillars of crypto, combining community, accessibility, and innovation. 

Onward and Upward!

Team Gemini

Cameron and Tyler Winklevoss Invest $4.5M of Bitcoin Into Real Bedford, Becoming Co-Owners With Peter McCormack

Inflation Data Spikes, BTC Price Fluctuates, and Asia Preps for Spot Bitcoin ETFs

ETF Outflows, May Rate Cut Doubts Drop BTC Below $65K, Though Anticipated June Cuts May Provide Boost, As Altcoin and Memecoin Upward Streak Slows, and SBF Is Sentenced to 25 Years

BTC Pushes Back Above $70K Amid LSE Crypto ETN News, BTC ETFs Reverse Outflow Trend, While BlackRock Shows Further Commitment to Digital Assets With BUIDL Launch

BTC and ETH Suffer After a Strenuous Week of BTC ETF Outflows and ETH ETF Approval Uncertainty, While SOL Shows Strong Resistance against Downward Market

BTC Reaches New All-Time Highs Surpassing Silver, ETH Completes Dencun Upgrade, While Memecoins and Altcoins Show Strength

An Early BTC ATH Switches Up Halving Trend, ETH Shows Mighty Market Resilience, and Memecoin Mania Returns

022224 (1)

BTC Breaks $60K, Ushering In Crypto Bull Market, With No Signs of ETH Slowing Down, UNI Soars Over Governance Proposal, AR Trades +75% on Testnet Release News

__Announcing The Successful Resolution of Earn__ 

__February 28, 2024__ – Today, we shared with Earn users that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in __all Earn users receiving 100% of their digital assets back in kind.__

This means, for example, that if you had lent one bitcoin in the Earn program, __you will receive one bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program__. If approved, we will be returning over $1.8 billion in value (at today’s prices) — $700 million more than when Genesis halted withdrawals on November 16, 2022. 

Looking forward, if the Bankruptcy Court approves the settlement in principle announced today, Earn users __can expect to receive approximately 97% of their assets in kind within about two months__. And they can expect to receive their remaining asset balance within the next 12 months. 

The settlement in principle is subject to definitive documentation. The required Bankruptcy Court process could take as long as two months to complete, and we will keep Earn users informed along the way. Gemini thanks the New York Department of Financial Services (DFS) for its role in this settlement, which delivers a coin-for-coin recovery for Earn users.
We’ve worked tirelessly over the past 15 months to advocate for Earn users and seek the return of their assets. As a part of this settlement, Gemini is contributing $40 million to Earn users’ recovery. 

As responsible stewards of the crypto ecosystem, we know that our customers value the ability to hold their digital assets through the ups and downs of crypto market cycles. Being able to return assets on a coin-for-coin basis to our customers was critical for us. 

We recognize the hardship presented by this lengthy process, and we are deeply appreciative of our customers’ patience and support along the way. 

Team Gemini

Announcing the Successful Resolution of Earn

A Crypto Spring is Upon Us As ETF Inflows Contribute to BTC Surge and ETH Boosts in Anticipation of ETH ETF Approval

Bitcoin Tops $52K, Continuing its Surge, Ether ETF Conversation Reemerges, Stacks (STX) Gains Over 45% Buoyed by Bitcoin, Interest Rate Cut Expectations Lowered Following Strong CPI Data

At Gemini, we are passionate about building products that expand and facilitate access to crypto. [The Gemini Credit Card](https://www.gemini.com/credit-card)* is a unique product that simplifies the entry into crypto by allowing users to earn crypto rewards on every swipe. 

__Starting today, Gemini Credit Card users can add up to five authorized users to their primary credit card accounts.__ With this new feature, cardholders can invite friends and family to start exploring the crypto ecosystem, and receive even more crypto back at the same time with each authorized user’s swipe of the Gemini Credit Card. 

- __Five Authorized Users:__ Add up to five family members or other trusted individuals to your primary account.
- __Seamless Tracking:__ Track spending on the Gemini Credit Card for each individual authorized user.
- __Building Credit for the Future:__ Build your credit history together with your authorized users. Each individual authorized user’s credit report will be updated based on the primary cardholder’s payment history.**
- __Simple Card Management:__ Add and manage users at any time from Card Settings on the Gemini website or mobile app. 

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Beyond the addition of authorized users, here’s a reminder of other perks you get as a Gemini Credit Card holder (all authorized users would benefit from these too!):

- __Unlimited 3% Back on Dining:__ Get 3% back on dining with no annual cap. 
- __Export Transaction History:__ You can now conveniently export your transaction history in .csv format directly from the Gemini Web interface or mobile app.
- __Push Notifications:__ You can now opt in or out of receiving push notifications for various purchases and notifications for improved security and convenience.

The Gemini Credit Card is a powerful tool for you to get started with crypto. Begin with the swipe of a card and start building your crypto portfolio. Instead of you and your authorized users spending your own money to buy crypto, you can automatically invest your credit card rewards in the supported crypto of your choice.

We are committed to creating more opportunities for crypto to grow. We hope you join us as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

*A Gemini Mastercard®. Issued by WebBank. [Terms Apply](https://www.gemini.com/legal/cardholder-agreement). Subject to [Rewards Program Terms](https://www.gemini.com/legal/credit-card-rewards-agreement). Engaging with crypto involves risks, including the risk of your crypto rewards declining in value over time. Past performance does not guarantee future results.

**We may report information about your Account or Authorized Users to credit bureaus and others. Late payments, missed payments, or other defaults on your Account may be reflected in your credit report and Authorized Users’ credit reports.

Get Even More Crypto With Up to 5 Authorized Users on Your Gemini Credit Card

Bitcoin Surges Past $47K, Solana Breaks Through $100 Despite Network Outage, Ethereum Name Service Pens GoDaddy Partnership, and Stocks Continue to Break Records

__Mission Control:__ 

Awkward Astronauts (AA) have officially completed two successful years in orbit, originating from the world of Decentralized Finance (DeFI) and navigating the depths of the metaverse. Our first 730 days on this interplanetary journey have been adventurous, ambitious, and a little awkward, but the mission continues.

__Origins: Gemini x Nifty Gateway__

Awkward Astronauts is an NFT collection launched in February, 2022 by Gemini & Nifty Gateway with artwork by Lambo. Mission control at Gemini worked very hard to recruit this crew of Awkward Astronauts to join us on our mission. Initially, all 10,214 astronauts were airdropped to Gemini & NIfty Gateway users that entered our sweepstakes in late January 2022. Looking at the faces of these astronauts, there was much to be proud of. 

These cadets represented the best the Earth had to offer—the bravest souls ready to take on the daunting task of laying a new foundation for the future of humanity. Putting this diverse group of cadets together to embark on a mission of this caliber, was truly an awkward enterprise, but it needed to be done. An awkward mission for an awkward group.

We caught up with Lambo, the artist behind Awkward Astronauts, to talk about the early days dreaming up the collection, inspirations, and a behind the scenes look at the earliest art iterations. 

__🧑‍🚀 SPACESUITS__ 

Everything at Gemini and Nifty Gateway is space themed. Employees are referred to as Astronauts, projects and initiatives are given names related to space, and we remain convinced that crypto will reach the moon (and beyond).

On the spacesuit inspiration: “I was always blown away by how many spacesuit designs exist in our history and pop culture, so I wanted them to be the core of each AA.”
![AA-Blog-1](//images.ctfassets.net/jg6lo9a2ukvr/3USYLAPAvYJcKhEmG41Xw3/306c24ae2d7d110be7c4e926839a9a4e/AA-Blog-1.jpg)

__👀 AWKWARD FACES__

On the facial expressions featured across the collection: “The AA faces had one goal–to look awkward… and there was no better place to look other than memes and TV shows that I love.”
![AA-Blog-2a](//images.ctfassets.net/jg6lo9a2ukvr/7v8PPen2bLlF8TWbj428qF/c0195838008f427b575c963cd8454ec8/AA-Blog-2a.jpg)

__✏️ SHAPES AND FORMS__

On initial design concepts: “Since the AA would be many people's first NFT, I knew they needed to look simple and appeal to the broader audience."
![AA-Blog-3](//images.ctfassets.net/jg6lo9a2ukvr/4LNdzvSQt5AagaFFDv2Acx/f8844922d64355f8dd6b76cf2ce58393/AA-Blog-3.jpg)

__🎨 AESTHETICS__

On AA aesthetics: “This was when it got super fun as I began experimenting with different colors and relative proportions between the head and the body.” 

Here are some early iterations:
![AA-Blog-4](//images.ctfassets.net/jg6lo9a2ukvr/4m6MsfuLuQWnFEtXZxVhYb/39493d7b6fc1b659ef1c44b64dd48a4b/AA-Blog-4.jpg)

__🌌 BACKGROUNDS__

On AA background variants: “I wanted the background of each AA to tell you about the universe, so I made them as colorful and mysterious as possible.”
![AA-Blog-5](//images.ctfassets.net/jg6lo9a2ukvr/3JxNhcQR6RWMbPZfTRejg/6d6a8c208916ef4ebb384a712074d6b0/AA-Blog-5.jpg)

__Highlights from Orbit:__

- Annual Gemini Utility 
  - Each year, all [Awkward Astronauts](https://x.com/AwkwardAstros/status/1646891741759569923?s=20) holders are eligible for one month of fee-free trading on the Gemini Exchange 
- Annual Nifty Gateway Utility  
  - Each year, all Awkward Astronauts holders are eligible for one month of no marketplace fees when buying NFTs on Nifty Gateway
- Expansion of Awkward Astronauts Through Limited Edition Releases, Created by Lambo
  - [Awkward Summer ](https://www.niftygateway.com/collections/awkward-summer)
  - [Awkward Winter ](https://www.niftygateway.com/collections/awkward-winter)
  - [Awkward Halloween](https://www.niftygateway.com/collections/awkward-halloween)
  - [Awkward Origin I ](https://www.niftygateway.com/collections/awkward-origin-1)

Are you an aspiring awkward cadet ready to embark on interplanetary conquests? Join Awkward Astronauts today and experience the vibrant, inclusive community. 

- [Awkward Astronauts Collection](https://www.niftygateway.com/marketplace/collectible/0xc71561e12faf378b07eacd36b3d0eb0d13a5fb1c)
- [Awkward Astronauts X (Twitter)](https://twitter.com/AwkwardAstros)
- [Awkward Astronauts Discord](https://discord.gg/niftygateway) 


Awkward Astronauts - Celebrating Two Years in Orbit

Fed Votes to Hold Interest Rates Causing Stocks to Tumble, SEC Set to Approve Ethereum ETF by May, and Record Breaking Trading Volumes for Solana DEX in Wake of JUP Airdrop

We are thrilled to announce the appointment of Saad Ahmed as Head of Asia Pacific (APAC) at Gemini. Saad will lead Gemini's strategy and business development efforts in the region. Saad joins Gemini from Grab, Southeast Asia’s superapp, where he held executive leadership positions as the Regional Head of Commercial and Managing Director, Merchants.

As Head of APAC, Saad will continue to expand Gemini’s APAC footprint, working to grow our user base and introducing our suite of products and services to institutions of all sizes. Saad will also oversee the region's profitability and growth.

With a career spanning more than two decades, Saad specializes in scaling technology-driven enterprises within APAC. He has held various leadership roles with global and regional giants such as Uber and Grab, helping both companies gain significant market share in the region. Prior to his roles at Grab, Saad was one of the founding team members for Uber in India and headed Business Development for the firm in Southeast Asia.

Crypto is a global movement, and the East/West Crypto Flippening is upon us. As the crypto winter begins to thaw, we are excited for Gemini’s expansion in APAC following the launch of our [crypto derivatives platform](https://www.gemini.com/derivatives) and the [opening of our India office](https://www.gemini.com/blog/gemini-to-expand-global-engineering-and-operations-teams-with-new-india-office) in 2023.

Saad's wealth of experience and commitment to fostering growth and innovation align seamlessly with Gemini's vision for expansion and excellence in APAC. Join us in extending our warmest welcome to Saad.

Onward and Upward,

The Gemini Team


Saad Ahmed to Lead Gemini Asia Pacific (APAC)

Bitcoin Hovers Above $40k, Ether’s Rally Against Bitcoin Stalls as SEC Delays Spot ETF Decisions, Altcoins Largely Flat After Dip, and Stock Market Continues to Hit New Highs Following Strong GDP Growth

Bitcoin Enters Consolidation Mode, Spot Bitcoin ETF Trading Starts Strong, Ether Continues to Gain on Bitcoin, and Solana to Launch New Smartphone After Saga Success

Spot Bitcoin ETFs Start Trading, Ether Is on the Rise With its Own ETF Conversation Starting, Inflation Ticks Up in December as Markets Await Interest Rate Cuts

Today, [VanEck](https://www.vaneck.com/us/en/), a global investment fund manager with $76.4 billion USD in assets under management, announced the listing of its spot bitcoin exchange-traded fund (ETF) [under the ticker HODL](https://www.vaneck.com/us/en/investments/bitcoin-trust-hodl/overview/), with Gemini named as custodian.

Both Gemini and VanEck have been pioneers in the industry’s efforts to offer a crypto ETF to the investing public. VanEck was the first established ETF issuer to file for a bitcoin-linked ETF, and Gemini founders Cameron and Tyler Winklevoss submitted the [first-ever spot bitcoin ETF application](https://www.sec.gov/Archives/edgar/data/1579346/000119312513279830/d562329ds1.htm) in 2013.

We look forward to supporting VanEck in this momentous step for the crypto industry: the launch of a US-based spot bitcoin ETF.

### Working With VanEck to Expand Access to Bitcoin and Crypto

We are thrilled to support the industry in reaching this monumental milestone as custodian for the [VanEck Bitcoin Trust (HODL)](https://www.vaneck.com/us/en/investments/bitcoin-trust-hodl/overview/), which was listed today on the Cboe BZX Exchange. Over the past few months, the discussion of a spot bitcoin ETF has gathered steam as various leading financial institutions have applied to list the first spot bitcoin ETF in the US.

VanEck has been a central player in this conversation for years, previously filing applications in 2021, 2022, and 2023.

### Gemini is Committed to Help Define the Operational and Regulatory Framework for a Spot Bitcoin ETF

Gemini is actively partnering with stakeholders, including fund issuers, authorized participants, fund administrators, and regulators to create a robust operational and regulatory framework for spot bitcoin ETFs. The SEC had previously pointed to a lack of visibility into crypto markets and the potential for manipulation as arguments in their denial of a spot bitcoin ETF, but Gemini, along with the crypto industry, has been committed to assuaging the SEC’s concerns.

Gemini has built new operational workflows and processes specifically relevant to the US market for both in-kind and cash creation/redemptions. This includes integrating with fund administrators via API to optimize the communication and risk controls between fund issuers, fund administrators, and custodians. To support cash creation and redemptions, VanEck will use Gemini Clearing for delivery and payment of coins and cash. Gemini Clearing is seamlessly integrated with Gemini Custody to optimize for an efficient operational process and risk management.

In addition, we have worked closely with fund advisors, exchanges, and regulators on market surveillance sharing agreements (SSAs). The [Winklevoss Bitcoin Trust application](https://www.sec.gov/Archives/edgar/data/1579346/000119312513279830/d562329ds1.htm) was the first spot bitcoin exchange traded product (ETP) to include such an agreement. We are also committed to supporting VanEck and other fund partners if new requirements are created under a constructive regulatory framework.

### Gemini is a Leader in Crypto Custody and Other Fund Services

[As we wrote last year](https://www.gemini.com/blog/gemini-offers-the-best-in-class-unified-platform-for-crypto-etfs), Gemini Fund Solutions (GFS) platform is a leading provider of custody, clearing/settlement, trading, and other capital markets services specifically designed for crypto ETFs and other funds. In December, Gemini [was named as custodian](https://www.gemini.com/blog/gemini-to-custody-7rcc-bitcoin-and-carbon-credit-futures-etf) on the 7RCC Global Bitcoin and Carbon Credit Futures ETF application.

GFS meets the industry’s highest financial and security compliance standards. Gemini has completed [SOC 1 Type 2](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto) and [SOC 2 Type 2 examinations](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto), certified by Deloitte, a fundamental requirement for safely managing financial products.

Assets custodied with Gemini Trust Company are segregated for the sole benefit of the fund owners, fully backed 1:1, and separated from other users’ assets. Gemini is fully committed to maintaining the highest regulatory standards as the industry evolves.

Supporting the VanEck spot bitcoin ETF as its custodian is a landmark development for our business as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

Gemini Named as Custodian on VanEck’s Newly Launched Spot Bitcoin ETF

In response to the latest Financial Conduct Authority’s (FCA) Financial Promotions requirements, that came into effect today, Gemini will be asking UK users for additional information to help better understand their level of investment knowledge. 

Since inception, Gemini has been committed to putting regulation and compliance at the forefront of everything we do. Our approach to these new FCA regulations is no exception. In late 2023, [we implemented a first set of rules](https://www.gemini.com/blog/gemini-remains-committed-to-the-uk-market) related to financial promotions that impact a variety of ways we communicate with our users in the UK. These included changes to our marketing channels, such as the inclusion of risk warnings, as well as changes to the type of incentives and promotions we are able to offer our customers residing in the UK.

The additional measures implemented today support a core purpose of the FCA’s Financial Promotions regime — customer safety — and align directly with a central pillar of our business: ensuring customers remain safe when interacting on our platform.

### What Changes Can You Expect to the Gemini Experience?

Starting on January 8, 2024, upon first login on either the Gemini web or mobile app, existing UK users will be asked to take the following steps:

1. __Sign a Self Categorisation Investor Statement:__ In order to make sure Gemini products and services are suited to our users, we will be asking users to select which type of investor they are — whether that’s a seasoned investor or brand new to crypto. This will help Gemini tailor our products and services to our users in the UK. 
2. __Complete a Crypto Risk Assessment Questionnaire:__ Gemini must ensure our users understand the risks associated with crypto asset investments, therefore our users in the UK will be asked to complete a short questionnaire of multiple choice questions. This will help Gemini ensure users are equipped to make informed and proportionate investment decisions. All users will need to complete and pass the questionnaire, in order to continue trading on Gemini.

Please note that if a user fails this risk assessment questionnaire on the second attempt, there is a 24-hour lock-out period, which restricts users from making any new trades. They will then need to retake and successfully pass the test after this lock-out period to continue trading. During the lock-out period, users will still have access to all other functionalities relating to crypto deposits and withdrawals.

We are committed to working collaboratively with regulators around the world to help the crypto industry flourish in a compliant, sustainable, and safe manner. The implementation of these FCA Financial Promotion regulations is the next step on this journey as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

Gemini Implements Additional Measures to Protect UK Users, Further Adhering to New FCA Regulations

Bitcoin Sees 156% Surge in 2023 as Spot ETF Potential Drives Sentiment, Ethereum Pushes Forward With Robust 2024 Roadmap, Interest Rate Outlook Complicated by Strong Jobs Report, Arbitrum and Sei Start 2024 on the Rise

Bitcoin Finishes Strong After Another Choppy Week, BlackRock Amends ETF Application to Satisfy SEC, and Coming Inflation Data May Further Support Interest Rate Cuts in 2024 

We are thrilled to announce that Gemini has been named as custodian on the [7RCC Global](https://www.7rccglobal.com/) Bitcoin and Carbon Credit Futures ETF application, [which was filed today](https://www.sec.gov/Archives/edgar/data/1985840/000183988223034059/tidal-s1_121823.htm) with the US Securities and Exchange Commission. 

Gemini has been a pioneer in the crypto custody and ETF industry, dating back to our founders Cameron and Tyler Winklevoss submitting the first ever spot bitcoin ETF application in 2013. Serving as custodian for the 7RCC spot bitcoin ETF, Gemini looks forward to partnering with fund issuers and supporting their work flows with an approval of a spot bitcoin ETF in the US.

### A Spot Bitcoin ETF With an ESG Focus

The 7RCC Bitcoin and Carbon Credit Futures ETF is well positioned to differentiate itself from the more than a dozen other spot bitcoin ETF applications seeking SEC approval. 7RCC, an alternative investment manager, aims to build a bridge between the digital asset industry and ESG-conscious investors with a focus on ETFs. 

According to the S-1 statement filed today, “the Fund’s investment objective is to reflect the daily changes of the price in bitcoin and the value of carbon credit futures contracts,” and is “designed to track the performance of investing in a portfolio comprised of 80% of bitcoin and 20% Carbon Credit Futures.”

The Fund offers a unique opportunity for investors to diversify their portfolios, balancing the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. In doing so, the Fund provides investors with an integrated single-trade approach to digital assets and environmental sustainability.

Founded in 2021, 7RCC is known for its pioneering spirit in the realm of investment products. The company continues to demonstrate its commitment to offering unique and forward-thinking investment opportunities to a global clientele. The team’s vision that blockchain presents a profound philosophical shift in how society collaborates is well aligned with our mission to unlock the next era of financial, creative, and personal freedom through crypto.

We are also delighted to be working with Tidal Financial Group, which has partnered with 7RCC to serve as the platform facilitating the creation, operation, and growth of the ETF. As of October 31, 2023, Tidal manages over $8.5 billion and partners with more than 54 ETF issuers that have launched a combined total 118 ETFs.  

### Gemini is a Leader in Crypto Custody and Other Fund Services

[Gemini continues to play](https://www.gemini.com/blog/gemini-offers-the-best-in-class-unified-platform-for-crypto-etfs) a major role in the effort to list a spot bitcoin ETF in the US. Our Gemini Fund Solutions (GFS) platform is a leading provider of custody, clearing/settlement, trading, and other capital markets services specifically designed for crypto ETFs and other funds. 

GFS is fully prepared to support both in-kind and cash creation/redemptions depending on fund issuer needs and in accordance with requirements from the SEC. In addition, Gemini is working on API integrations with market makers, fund administrators, and issuers to create optimized end-to-end workflows. 

GFS meets the industry's highest financial and security compliance standards. Gemini has completed [SOC 1 Type 2](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto) and [SOC 2 Type 2](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto) examinations, certified by Deloitte, a fundamental requirement for safely managing financial products.

Assets custodied with Gemini Trust Company are segregated for the sole benefit of the fund owners, fully backed 1:1, and separated from other users’ assets. Gemini is fully committed to maintaining the highest regulatory standards as the industry evolves.

Supporting the 7RCC spot bitcoin ETF as the fund’s custodian is an important development for our global crypto platform as we continue on our mission to unlock the next era of financial, creative, and personal freedom. 

Onward and Upward!

Team Gemini

Gemini to Custody 7RCC Bitcoin and Carbon Credit Futures ETF — Blending Bitcoin With Environmentally Conscious Investments

There’s no denying that taxes are complicated, and adding crypto taxes to the mix certainly doesn’t help. Over the past year, a cross-functional team of tax experts and engineers at Gemini have collaborated to build the __Gemini Tax Center__, a hub dedicated to simplifying your US crypto tax reporting. 

The new Gemini Tax Center* is designed to provide you with helpful tools for the upcoming tax season. If you sold assets on the Gemini exchange in 2023, you will be able to generate a __gain/loss statement__ for these sales. You’ll also be able to track information for crypto transferred to Gemini by manually entering price and acquisition date information, or using a default value at the time of the transfer.

### Download a 2023 Gain/Loss Statement Plus Current and Historical Forms 1099-MISC

To generate a 2023 gain/loss statement, you’ll have to satisfy the following conditions:

1. Sold an asset in 2023;
2. Selected a cost basis method to apply to sales; and
3. Input cost basis and acquisition date information for assets transferred onto the exchange (if applicable).

The Gemini Tax Center will also be the new centralized location for US users to download current and historical Forms 1099-MISC, as well as receive income and realized gain/loss information.

### How to Access the Gemini Tax Center

To access the Gemini Tax Center, follow these steps:

1. Log on to your Gemini account on our website or mobile app,
2. Navigate to the Account tab at the top right of your screen (if you're on web, click settings),
3. Locate and click on the Statements and taxes tab,
4. Once on the Statements and taxes page, select the Taxes tab.

*Make sure your app is up to date. 

[Visit this link to learn more about the Gemini Tax Center](https://support.gemini.com/hc/en-us/sections/20008507869979-United-States) and Gain/loss statements generated by Gemini.

We are thrilled to offer this new tax hub for you to generate forms you may need to help report your Gemini-related crypto tax information. We’re always driven to build more products to support you on your crypto journey as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

**The Tax Center will be available for both Retail and Institutional users who have access to the Gemini website or app. 2023 Gain/loss statements will not be available for OTC traders.*

*Please consult with a tax professional for any questions about your personal tax situation including advice on a cost basis method. Gemini does not verify and cannot be responsible for information input by users regarding the acquisition cost or date of transferred assets, and the impact on an individual’s tax obligations. Information on 2023 gain/loss statements is not filed with the US Internal Revenue Service, but only provided to customers for the sake of convenience.*


Simplify Your Crypto Tax Reporting With the New Gemini Tax Center

Bitcoin Regains Momentum After Early Dip, Fed Projects 3 Rate Cuts in 2024, Dow Hits All-Time Highs, and New Accounting Rules Could Facilitate More Corporate Ownership of Bitcoin and Crypto

Bitcoin halving events occur roughly once every four years. Thus far, in the network's almost 15-year history, the price of bitcoin (BTC) has increased significantly in the period following each halving event. With the fourth Bitcoin halving expected to arrive in April 2024, here, we explore what a halving is and what it could mean for the price of bitcoin and crypto. 

### What is the Bitcoin Halving and Why is it Important?

The supply schedule of bitcoin is deflationary with a finite supply of 21 million bitcoin coded into the network’s source code. This feature differentiates it from all fiat currencies and many other cryptos. Bitcoin’s supply schedule dictates that every time a miner successfully writes a new block to the blockchain (i.e., solves the [proof of work puzzle](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Work%20(PoW))), that miner receives a set number of bitcoin called the "block reward." 

<details>TrendReport</details>

If this block reward never changed, the supply of bitcoin would increase forever. To encode Bitcoin’s deflationary nature, every 210,000 blocks — roughly every four years — the block reward is reduced by half, an event often referred to as the “the halving” or "the halvening." 

__Genesis:__ When Bitcoin launched in 2009, the initial block reward was 50 bitcoin. 
__First Halving:__ On November 25, 2012, the first halving occurred, halving the block reward from 50 to 25 bitcoin. 
__Second Halving:__ On July 10, 2016, the second halving occurred, halving the block reward from 25 to 12.5 bitcoin. 
__Third Halving:__ On May 11, 2020, the third halving occurred, halving the block reward from 12.5 to 6.25 bitcoin. 
__Fourth Halving:__ The next halving is expected to happen in April 2024 and will reduce the block reward from 6.25 to 3.125 bitcoin.

The block reward will continue to undergo halvings until it reaches 0, which is estimated to happen sometime in the year 2140. At that point in time, there will be a total of 21 million bitcoin in circulation.

This reduction in the supply of bitcoin, about every four years, has played a significant role in price swings following a halving event. Could we see a similar dynamic this time around? 

### How Have Previous Halvings Impacted the Price of Bitcoin?

The halving certainly isn’t the only factor that can impact the price of bitcoin. Just this year we’ve seen the impact national monetary policy and other developments like the emergence of a spot bitcoin ETF can have on prices. Nevertheless, the halving is a notable event for investors and forms one of the main pillars in bitcoin’s investment case.

As we can see in the chart below, the price of bitcoin saw a parabolic rise in the periods following each of its three previous halving events. 

![Bitcoin Halving (2)](//images.ctfassets.net/jg6lo9a2ukvr/20rkdTOOb55ETfYVMRcgGG/0f62dc4be2821f5428810e5f0e13af6c/Bitcoin_Halving__2_.png)

Will we see a similar increase in price following the fourth Bitcoin halving coming in a few months? Nothing is certain, but if history is any guide we could be in for a wild ride. 

Onward and Upward!

Team Gemini

InlineCTA-TrendReport (3)

This blog is part of our 2024 Crypto Trend Report series.

Trend Report CTA

What the 4th Bitcoin Halving Could Mean for Bitcoin and Crypto

The advent of crypto and blockchain was nothing short of revolutionary. These paradigm-shifting technologies have disrupted traditional finance, introduced new standards for trust and security, and led to the rise of Web3 — a new version of the internet powered by decentralized protocols and crypto. 

<details>TrendReport</details>

In the coming year, we’re quickly approaching an inflection point as crypto and blockchain intersect with another transformational technology: Artificial Intelligence (AI). Here, our team explores some of the most exciting and impactful applications at the intersection of AI and crypto. 

### AI-Driven Smart Contracts

[Smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) are a foundational technology in blockchain. Their central feature is the ability to self-execute code that carries out a set of instructions, which are then verified on the blockchain, making them trustless, autonomous, decentralized, and transparent. Uniting smart contracts and AI has the potential to exponentially increase the ability for smart contracts to respond to changing events and circumstances making their output more timely and effective. 

Imagine being able to dynamically adjust the terms of a smart contract without manually updating the contract’s code. With the integration of AI, decentralized applications (dApps) could start doing just that. Smart contracts interacting with AI-powered oracles would be able to execute complex tasks autonomously, and, for example, dynamically adjust terms based on real-time data or performance metrics.

### Secure and Decentralized Computing Power and Data Storage

The emergence of AI and large language models (LLMs) has reinforced the need for an increasing amount of computing power and highlighted the importance of ensuring large data sets can be stored securely and in a cost-effective manner. Blockchain and crypto can play an important role on both these fronts, as secure and decentralized blockchain networks can provide additional computing power and long-term data integrity for use across various AI models. 

Using blockchain to secure and decentralize large data sets is particularly valuable for large-scale analytics, including federated learning, where machine learning and AI models are trained across enormous decentralized data sources. And, as AI progressively becomes a large part of our day to day lives, the availability of computing power to process accurate and uncompromised data becomes a requirement. 

### Training GPTs on Blockchain Data

The enormous success of AI products like ChatGPT has validated the use case for GPTs (generative pre-trained transformers). But there is so much more that can be done with GPTs. Training GPT models on blockchain data, rather than just text, can enhance the generation of content related to blockchain transactions. 

This approach could lead to more sophisticated models for analyzing and interpreting blockchain data, making complex blockchain data more accessible to a less technical audience and generally increasing access to blockchain data and analytics.

### Transparency Through On-Chain Language Models

Transparency is a central feature of blockchains. In contrast, the data that underpins LLMs, which form the base of many contemporary AI applications, are largely hidden from view and difficult to parse. 

An LLM that operates on-chain would use a data source that is verifiable and transparent. This would transform the traditional "black box" model into an "open box," allowing users to trace and verify the origin of the data used by the AI model.

### Authenticity Verification on the Blockchain to Combat Disinformation

Disinformation, deep fakes, and the general dissemination of fabricated information are becoming increasingly common with the proliferation and sophistication of AI-based systems, and can have deep ramifications across the globe. 

Blockchain can help mitigate these threats through cryptographic validation and timestamping. Imagine a decentralized platform that targets a wide range of AI-generated disinformation using non-fungible tokens (NFTs) to establish a digital fingerprint for content, enabling transparent content curation, verification, and distribution. In this way, blockchain can play an important role in addressing the fallout from more nefarious uses of AI.

We’re entering an exciting time for the crypto industry, with the convergence of AI with blockchain and crypto marking an important evolutionary moment for our industry. We can’t wait to see what else will emerge from the intersection of blockchain and AI!

Onward and Upward!

Team Gemini

Exciting Use Cases at the Intersection of AI and Blockchain

Bitcoin Breaks Through Another Yearly High, Doge Turns 10 and Spurs Memecoin Rally, and Bitcoin-Linked Altcoins Have Strong Showing With ETF Decisions on the Horizon

Bitcoin Hits Yearly High as Spot ETF Expectations Continue to Build, Fed Governors Talk Interest Rates Ahead of December Meeting, and FTX Set to Sell Off Trust Assets

Binance to Pay $4.3 Billion to Settle US Charges, CZ Steps Down, Kraken Sued by SEC, and Coindesk is Bought by Bullish

In August, Sam Spratt and Nifty Gateway, a Gemini company, teamed up to deliver [The Monument Game](https://www.niftygateway.com/collections/sam-spratt-the-monument-game) — an interactive experience of art and observation powered by blockchain technology. 

Sam’s artwork brought a new dimension to the world of NFTs, welcoming collectors to an interactive experience where they could add their thoughts and considerations to the art itself. Sam challenged collectors to “give a little piece of themselves to the painting, a sacrificial offering if you will.” 

To compete in the “IX. The Monument Game” digital painting, collectors added a final digital varnish of their thoughts through observations, connecting Sam’s story, art, and collectors under a common system. In his words: “Dominion is formed through naming what we see, truth found in consensus.”

The response to The Monument Game was massive. 

- __10,000 unique users__ were on the Nifty Gateway site at launch.
- The 1/1 “IX. The Monument Game” __sold for 420.69 ETH__, the highest 1/1 bid on Nifty Gateway this year. 
- 209 “Player” NFTs that gave collectors the ability to add an observation to “IX. The Monument Game” __sold out in 123 seconds, with $1.2 million in primary sale volume__.

Sam’s imagination and the responses to his art merged to form a community-built art piece that is more than the sum of its parts. 

Following the release of The Monument Game, we conducted a Q/A with Sam to learn more about his experience engaging with the community that has grown around his art and what he sees next for the NFT industry, among other topics. 

*The Q/A has been edited for clarity and brevity*.
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

### Nifty Gateway: How would you describe The Monument Game to someone not familiar with NFTs?

__*Sam:* A new gallery opens.__ Inside of it is one massive painting on the wall filled with hundreds of stories. There is no cocktail party opening. There is no music. The gallery can be filled with people but no matter how many there are, only you are in the room with the painting at any given time. 

Anyone is able to come and see it for free as the gallery is open 24/7/365, and anyone can get up close to the painting, they can even touch it, run their greasy fingers over its surface as they pan across the vignettes depicted within it, but it cannot be destroyed.

__For the opening week of the gallery__, the painting serves as an experience that rewards the curiosity and interaction of its viewers. Two hundred fifty-six gallery visitors, who are willing to be patrons of the artist behind this painting, can collect a signed print by them at the door and can not only enter to touch and view the larger work, but also compete with one another to collect the artist’s work by simply observing the painting. 

__Their observations__ – what the gallery-goer takes from the work – the exact spot on the painting they were looking at, the exact feeling they had and were able to voice, serve as permanently etched thoughts into the varnish of both this massive painting, and are written into the signed prints they each collected.

For the opening week, these observations are judged by the artist’s existing collectors. Combed through carefully and with love, existing collectors determine which three patrons left behind a piece of themselves atop the painting. The three chosen patrons are welcomed among the ranks of collectors, and are invited to join their unique community.
![Nifty Sam Q1](//images.ctfassets.net/jg6lo9a2ukvr/59DO4rUGYf4XlZS9b4Nb00/e583a413c9100e6732bb6eb42db5d477/Nifty_Sam_Q1.png)

Lastly, __a wealthy collector visits this gallery and sees the painting.__ They also see 256 people who have spent at the very least minutes, and in many cases, hours, even days, studying it and sharing what they see and feel. The collector collects not just the painting, but the energy that others have given to help understand the work they hope to place in their collection. They perpetually share it. The gallery stays open. The observations too.

### Nifty Gateway: How do you hope (or have seen) The Monument Game change the way artists and collectors engage with one another?

*__Sam:__* I am wary to speculate on what I’ve seen, as The Monument Game revealed a very complex web of human motivations around me that is not always what it seems, and one piece will not change this behavior.

However, for those who are interested in gleaning something from what I’ve experienced through the human connections formed around it, I would say: __active participation in art is a more complex, vulnerable, and spicier relationship between people than a transaction of collection.__ 

I have had conversations with many of the collectors of “Player” without ever speaking a word to each other because I spoke it in the painting, and provided a reason and ability to respond within the work. I feel a mutual sense of closeness that acknowledges we do not all need to be pen pals, but understands one another to some degree, and allows us to skip the preamble and tutorial of conversation for when we do actually meet.

### Nifty Gateway: Why did you choose to open source The Monument Game’s code?

*__Sam:__* A lot can be done with it. I would love to see what others have in themselves and what they might create with some of the tools we built.

### Nifty Gateway: You’ve mentioned on Twitter that you’re tracking everything related to The Monument Game very closely, why?

*__Sam:__* I am collecting the feelings others have elicited out of me and curating them. They are the inspiration.
![Nifty Sam Q2](//images.ctfassets.net/jg6lo9a2ukvr/4sqE3iyBkhcuNRYruR0S2D/98d5733ce025d7d80db5d5f061251744/Nifty_Sam_Q2.png)

### Nifty Gateway: Can you tell us about what’s next for The Monument Game? And, what’s next for you?

*__Sam:__* The Monument Game will most certainly have a second life as it finds placement in the world. The conversations being had are wild. Very exciting.

Two months out from The Monument Game, I am already fully submerged deep into the soup of the next chapter of Luci. Chapter 6 is simultaneously a far more intricate and intimate story. It plays with the human chaos of what was learned from the Players and The Monument Game. “X.” is demanding much more than before but __nothing for me is more interesting than waking up to a behemoth of a self-created and uncertain endeavor, and learning what’s required to make a delusional idea real.__

Those expecting a quick follow-up are not paying much attention, but those who see the year that went into the creation of The Monument Game as proof of where my interests and passion are and have the patience to wait: It’s going to be a hell of a party.
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

Thank you to Sam for bringing us into his world and sharing his thoughts with us. We eagerly wait to see what he offers next to the art and NFT worlds. 

Onward and Upward!

Team Gemini

A Discussion With Sam Spratt: How The Monument Game Is Redefining the NFT Landscape 

Solana Soars as Bitcoin and Ether Consolidate, Avalanche Partners With JPMorgan and Apollo, and Equities Rise as Inflation Continues to Cool

- We’ve developed a new pair discovery interface for mobile, which includes filters for stablecoins, crypto-crypto pairs, popular pairs, and top movers.
- Through our Advanced trading mode, mobile users also have access to maker-or-cancel, immediate-or-cancel, and fill-or-kill orders.
- To change modes, simply navigate to your account settings on mobile and choose Advanced mode. Switch back to Simple mode at any time. 
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

Today, we are pleased to announce the launch of the Advanced Trading mode on [the Gemini mobile app](https://www.gemini.com/mobile). Advanced Trading on mobile brings many of our ActiveTrader interface’s core functionalities to our mobile app, including enhanced __trading pair discovery__ and __new order types__. These updates offer a more sophisticated mobile trading experience to our users across the globe.

## Enhanced Crypto Trading on Mobile

The dynamic nature of crypto markets means that traders often need access to advanced trading tools and features while on the go. Below, we outline the trading features we’ve recently added to the Gemini mobile app. *Please note that trades made through our Advanced mode interface on mobile adhere to our mobile fee schedule.*

### Trading Pair Discovery

We’ve developed a new pair discovery interface for mobile, which includes filters for stablecoins, crypto-crypto pairs, popular pairs, and top movers, enabling Gemini's sophisticated traders to easily find the pairs they want to trade when on the go.
![02 Blog ATI](//images.ctfassets.net/jg6lo9a2ukvr/1v1wK9JSJcWDH4j0XGqsAe/c7effe745da5e2ecc0b1c7d08022c83c/02_Blog_ATI.png)

### Additional Order Types

Mobile users also have access to order types previously unavailable on mobile, including maker-or-cancel, immediate-or-cancel, and fill-or-kill orders. All these order types are also available for concrete pairs, eligible FX pairs, and cross or convert pairs.
![03 Blog ATI](//images.ctfassets.net/jg6lo9a2ukvr/2SnY9DqXq5fcnqox1ZPjYS/fadf01810443ff5cd9ed8268f54b08c9/03_Blog_ATI.png)

### Seamlessly Switch Modes

Switching between Simple and Advanced trading modes is as simple as a tap on your mobile app, offering seamless navigation and a consistent trading experience. To change modes, navigate to your account settings on mobile and under “Trading mode” choose Advanced mode. Your account data is the same in either mode, ensuring you have access to all your information and preferences at any time.
![04 Blog ATI](//images.ctfassets.net/jg6lo9a2ukvr/talieyA5N05swz0Jtihai/86fa270513ae19cf2f00d9dd4319f200/04_Blog_ATI.png)

We will continue to enhance [the Gemini mobile app](https://www.gemini.com/mobile) by regularly adding more advanced trading functionalities to improve the user experience when you’re on the go. With these updates, we’re thrilled to offer Gemini users even more ways to trade on mobile, as we continue on our mission to unlock the next era of financial, creative, and personal freedom. 

Onward and Upward!

Team Gemini

Advanced Trading Mode: Upgrade Your Mobile Trading Experience on Gemini

At Gemini, we believe that the crypto ecosystem must include guardrails and an appropriate level of transparency to protect users from financial crime and fraud. We have always been dedicated to regulatory compliance and believe that adherence to the Travel Rule is an important next step in creating a safe ecosystem for those looking to transact in crypto.

We have recently been in touch with our UK users to notify them of planned changes to crypto transfers in response to requirements instituted through the Travel Rule, which require Virtual Asset Service Providers (VASPs), like Gemini, to share information about the sender and the receiver on both ends of a crypto transfer. Today, we provide more details on what changes will be implemented on our platform as a result of the Travel Rule. 

To ensure compliance with these new rules, Gemini has partnered with Travel Rule Universal Solution Technology (TRUST) and instituted changes to our platform designed to curtail financial crime and fraudulent activity in the industry. TRUST's technology stack allows us to safely share data in order to comply with these regulatory requirements, while prioritising the security and privacy of our users. 

### What is the Travel Rule?

The Travel Rule is a set of global standards that require financial institutions and virtual asset service providers (VASPs) to share information about the senders and recipients of virtual assets.

The Rule is designed to make it more difficult for criminals to use cryptocurrencies or other virtual assets for illicit activity and enhance the transparency associated with crypto transfers. The additional information you will now be asked to supply when transferring crypto into and out of Gemini can be used to help prevent bad actors conducting illegal activity. 

### Changes to Your Gemini Experience

In the coming days and weeks, you should expect the following changes to your experience on our platform: 

- __Outbound Crypto Transfers (Effective 17th November 2023):__ To ensure transparency of data, Gemini will only permit outbound transfers to other TRUST members. Gemini will block any outbound transfers to a non-TRUST VASP. [You can view the full list of TRUST members here](https://support.gemini.com/hc/en-us/articles/20102956284187-Travel-Rule-Universal-Solution-Technology-TRUST-). When transferring from your Gemini wallet to another crypto address, we will request the name of the recipient (whether a person or entity). To ensure your privacy, the data you provide will only be shared between the sending and receiving providers, and no one else.
- __Inbound Crypto Transfers (Effective 8th December 2023):__ Gemini may freeze and/or restrict users who are attempting to make inbound transfers to Gemini from VASPs that are not TRUST members whilst a manual review is conducted. This would likely only happen if transactions are missing the information required under the Travel Rule. When funds are being transferred into your Gemini wallet from another wallet address we will request the name and address of the sender (whether a person or entity).
- __Unsupported tokens:__ While Gemini will permit transfers of all tokens to self-hosted wallets, only transfers of ERC-20 tokens, ETH, and BTC will be supported to other VASPs. You can still freely trade and hold other tokens within Gemini.

### What Steps Do You Need to Take?

__You do not need to do anything.__ We will be staggering the implementation of these planned changes and will be in touch over the coming weeks via email to remind you of relevant dates, notably: 17th November 2023 and 8th December 2023.

Gemini is committed to working collaboratively with regulators around the world to help the crypto industry flourish in a compliant, sustainable, and safe manner. The implementation of the Travel Rule is the next step on this journey. If you have any more questions, please refer to our [Travel Rule FAQ](https://support.gemini.com/hc/en-us/articles/20068649848091-United-Kingdom-Travel-Rule-regulations-requirements) for additional information. You can also reach our support team [here](https://support.gemini.com/hc/en-us/requests/new?ticket_form_id=1260809732969).

Onward and Upward!

Team Gemini

Gemini Is Dedicated to the UK Market and Adhering to the Travel Rule

Weekly Market Update - Bitcoin Extends Gains to $37K Amid More ETF Rumors, Ether Builds Momentum, and Crypto Funds See Flood of Inflows

Weekly Market Update - Bitcoin Forms Golden Cross, Altcoins Surge, Fed Holds Rates, and SBF Found Guilty On All Counts

Weekly Market Update - Friday, October 27, 2023 - Is the Winter Thawing? Bitcoin Soars, Topping $35k USD, and Third-Quarter US GDP Growth Beats Estimates

Weekly Market Update - Friday, October 20, 2023 - Bitcoin Jumps Following Fake ETF News, GBTC Discount Narrows, and ECB Moves Closer to a Digital Euro

On 8 October 2023, the FCA Financial Promotions Regime brought into effect new rules around qualifying cryptoassets. These rules set out new standards for financial promotions of cryptoassets and apply to firms offering these products to UK consumers.

Since inception, Gemini has been committed to putting regulation and compliance at the forefront of everything we do. Our approach to these new FCA regulations is no exception, and we have been working tirelessly over the past several months to implement the rules. 

### How do the new rules impact our customers?

As part of our dedication to complying with these new rules, we wanted to share actions we are taking that will impact our customers:

- __Social Media:__ We launched a new handle on 𝕏 — [@GeminiUK_](https://twitter.com/GeminiUK_) — which is dedicated to updating our UK-based customers on Gemini news and offers. Take a look and follow us there!
- __Risk Warnings:__ We added the required risk warnings and associated risk summaries for customers in the UK on our social channels, mobile app, and web interfaces. 
- __Incentives and Promotions:__ In line with the rules, we no longer offer certain incentives or promotions to UK-based customers.
- __Phased Implementation:__ These changes are being implemented in two phases. The first phase has been in place since 8 October 2023, and subsequent changes will go live on 8 January 2024. 

We are proud to continue to support our customers in the UK by complying with these new rules. 

Onward and Upward!

Team Gemini

Gemini Remains Committed to the UK Market and Compliance With New Financial Promotions Rules

Weekly Market Update - Friday, October 13, 2023 - US Economic Data Complicates Future Fed Decisions, SBF Trial Continues as Ellison Takes the Stand, and Crypto Adoption Is on the Rise in India

As we continue to build products that enable everyone to harness the opportunity of crypto, we want to take a moment to provide you with a look “under the hood” into how some of our crypto-native products function. Today, we explore [__Gemini Staking Pro__](https://www.gemini.com/staking), which allows users to set up their own dedicated Ethereum validators all within the regulated and secure Gemini ecosystem. 

__Gemini Staking Pro__ is a crypto staking product built specifically for institutions and high-net-worth individuals. Gemini users with 32 ether (ETH) or more can run dedicated validators on the Ethereum network, through Gemini’s simple and [secure](https://www.gemini.com/security) user interface. To run this process, we built a cutting-edge Validator-as-a-Service (VaaS) offering, allowing Gemini users to participate in Ethereum's decentralized Proof-of-Stake (PoS) consensus mechanism. 

In this blog, we follow the path your ETH takes when you decide to stake with Staking Pro, outlining the step-by-step process of managing Ethereum validators within our in-house infrastructure, built with transparency and trust at its core.
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

### Step 1 — Customer Buys ETH or Transfers ETH into Gemini Account

The first step when staking with Gemini Staking Pro is having ETH in your Gemini Exchange account. There are two ways you can do this: 1) buying 32 ETH through our exchange, or 2) transferring ETH from an external wallet into your account. Read more about how to fund your account, or how to purchase and deposit crypto [on our support center](https://support.gemini.com/hc/en-us/categories/1260802420710-Trading-Funding-Withdrawing). 

### Step 2 — Customer Initiates Staking Request 

Once you have at least 32 ETH in your account, you can begin the staking process. To start, navigate to the Grow tab on your account, and request to stake 32 ETH through Staking Pro. 

Once you’ve initiated the request, Gemini proceeds to transfer 32 ETH from your account and create an Ethereum validator within our Validator-as-a-Service (VaaS) system. The validator we create is then assigned to your account. Your staking status will be updated to "pending."

### Step 2.5 — From Pending to Active

Once your status is set to "pending,” your validator is either being moved on-chain or is in Ethereum’s on-chain activation queue and is yet to be activated. 

The length of the activation queue depends predominantly on the level of activity on the network at any given time. Queues will be longer when there are many staking validators to be set up, while the queue will be shorter during periods of lower demand. 

The status will switch from "pending" to "active" when your validator exits the activation queue and is activated on the Beacon chain, Ethereum’s consensus layer.

### Step 3 — You Are Staked! Validator Activation and Rewards 

Once activated, your validator becomes eligible to verify transactions in proposed blocks and accrue staking rewards on the Ethereum consensus layer — __in essence, you have now joined the thousands of validators across the globe securing the Ethereum network and verifying transactions__.

In some cases, your validator may be selected to propose new blocks, allowing you to earn both consensus (newly minted ETH) and execution (ETH-denominated transaction fees) layer rewards for the proposed transactions. 

It is important to note that the validator must propose a set of valid and accurate transactions; inaccurate transactions may be penalized through a process known as “slashing,” which can result in the loss of a portion of your originally staked 32 ETH. Gemini has developed a robust system with monitoring tools to minimize losses due to slashing. 

### Step 4 — Rewards and Gemini Account Updates 

The Ethereum network will automatically transfer any ETH rewards accrued in your validator to a withdrawal queue. It then takes approximately five days for those funds to transfer from the withdrawal queue to a Gemini-controlled wallet. You can then choose to unstake your rewards. 

Once your rewards are unstaked, you can either seamlessly re-stake them or withdraw them to your Gemini exchange wallet. Gemini conducts daily balance and reward queries at 4pm ET, which then updates your account accordingly. We also consider the asset's price at the time of the snapshot so we can display your ETH’s current fiat value.

### Step 5 — Unstaking Process

If you decide to unstake your ETH you can submit a request from the Grow tab in your Gemini account. Gemini will then execute your request on-chain, and your ETH enters the network’s withdrawal queue.

Similar to the activation queue, the exit queue's length varies based on the number of unstaking requests the network has received. A large number of requests may result in a longer wait period before your ETH becomes available to you. When you submit your request to unstake, we will provide you with an estimated timeframe for when you can expect your ETH to exit the queue. Please note that this time frame is only an estimate.
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

We are proud to provide our users with a secure and reliable method to run dedicated Ethereum validators directly through Gemini. If you have additional questions about the journey your ETH takes through the Gemini Staking Pro program please feel free to contact us at [staking@gemini.com](mailto:staking@gemini.com).

### Additional Staking Options Coming to Gemini

We anticipate launching support for non-custodial staking, enabling users to stake ETH on Gemini that they hold in Gemini Custody or in their own private wallets. Stay tuned [on our blog](https://www.gemini.com/blog) or [fill out this form](https://docs.google.com/forms/d/e/1FAIpQLSdpMhcfccGgNfTghFba-j2TbXMGHZqqHLGuurA0J_-MwsVphQ/viewform) for more information on when non-custodial staking will become available. 

To connect with one of our dedicated staking experts and learn more about non-custodial staking on Gemini, we invite you to reach out to [staking@gemini.com](mailto:staking@gemini.com). 

Onward and Upward!

Team Gemini

Validator-as-a-Service (VaaS): a Step-by-Step Guide to How Gemini Securely Stakes Your ETH

Weekly Market Update - Friday, October 6, 2023 - SBF Goes on Trial, Ether Futures ETFs Start Trading, and Judge Rebuffs SEC’s Ripple Appeal

The crypto ecosystem faced significant challenges this year. Despite the various headwinds, talented individuals across all our teams have continued to build every day during the bear market.

As we mark Gemini’s 8th anniversary, we wanted to take the opportunity to provide an overview of recent company announcements that our teams have worked hard to bring to life. A lot happened in 2023: our leadership team embarked on a global odyssey tour, we launched a new crypto derivatives platform, and we opened an office in India. But, that’s merely a fraction of everything our teams accomplished. 

The progress we made in 2023 will set the stage for Gemini’s continued growth as a global crypto platform, as we advance our mission to unlock the next era of financial, creative, and personal freedom. 

Below is an overview of the most impactful updates of 2023.

## Crypto Is Global, and So Is Gemini

__The Gemini Odyssey Tour.__ In May, Gemini’s leadership embarked on a global odyssey to meet with financial regulators, lawmakers, customers, and media across eight cities, six countries, and two continents to tell our story and learn about attitudes towards crypto worldwide.

<blockquote class="twitter-tweet" data-dnt="true">The bridge for the future of money. Our mission is to unlock the next era of financial, creative and personal freedom. 🚀 <a href="https://t.co/LO7VFKU8IY">pic.twitter.com/LO7VFKU8IY</a>&mdash; Gemini (@Gemini) <a href="https://twitter.com/Gemini/status/1706385580630872499?ref_src=twsrc%5Etfw">September 25, 2023</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Following the tour, we are more enthusiastic than ever about continuing to drive our global expansion as crypto becomes increasingly essential to the global financial landscape.

__Expanding our presence and investment in India.__ In April, [we announced the opening of our Gurgaon office](https://www.gemini.com/blog/gemini-to-expand-global-engineering-and-operations-teams-with-new-india-office) in India, which will be the second largest Gemini engineering hub behind the United States and complements our existing international offices in the United Kingdom, Ireland, and Singapore.

In September, we built on that announcement and revealed that over the next two years, we [plan to invest INR 200 crore ($24 million USD)](https://www.gemini.com/blog/gemini-to-deepen-india-investment-over-next-two-years-with-plans-to-invest) to grow our development center in Gurgaon, and more than double the size of our team in the country to 150+. India is undoubtedly a leading global hub for entrepreneurship and technological development, and we are thrilled to expand Gemini’s presence.

## Building Products to Help You Explore the World of Crypto

__Launching Gemini Derivatives.__ In May, [we launched Gemini Derivatives](https://www.gemini.com/blog/gemini-foundation-a-non-us-derivatives-platform-is-now-live), a non-US crypto derivatives platform. Gemini Derivatives allows eligible customers to leverage their crypto assets to achieve long or short crypto exposure in order to manage risk, generate returns, and gain directional exposure. Eligible customers can trade BTC/GUSD, ETH/GUSD, and PEPE/GUSD perpetual contracts. [Follow along here](https://www.gemini.com/blog/type/derivatives) for more details about Gemini Derivatives. 

__Support for XRP.__ In August, [we were delighted to announce](https://www.gemini.com/blog/gemini-adds-support-for-xrp) support for the [XRP Ledger and XRP](https://www.gemini.com/prices/xrp), adding a new blockchain to Gemini’s growing list of supported networks! With the addition of XRP Ledger, Gemini is now compatible with 13 blockchain networks, including: [Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin), [Ethereum (ETH)](https://www.gemini.com/prices/ether), [Solana (SOL)](https://www.gemini.com/prices/solana), [Litecoin (LTC)](https://www.gemini.com/prices/litecoin), [Bitcoin Cash (BCH)](https://www.gemini.com/prices/bitcoin-cash), [Polkadot (DOT)](https://www.gemini.com/prices/polkadot), [Avalanche (AVAX)](https://www.gemini.com/prices/avalanche), [Cosmos (ATOM)](https://www.gemini.com/prices/cosmos), [Zcash (ZEC)](https://www.gemini.com/prices/zcash), [Filecoin (FIL)](https://www.gemini.com/prices/filecoin), [Dogecoin (DOGE)](https://www.gemini.com/prices/dogecoin), and [Tezos (XTZ)](https://www.gemini.com/prices/tezos).

__Bolstering account security with passkeys.__ In September, [we announced support for passkeys](https://www.gemini.com/blog/passkeys-add-security-feature-to-gemini-account), offering industry-leading account security. We were thrilled to add this new security measure to user accounts, as passkeys offer the highest security standards available and reduce the effort required to secure your account.

__There was so much more!__ Other notable product announcements from the past year include: adding [support for PEPE](https://www.gemini.com/blog/gemini-now-supports-pepe), launching [Solana (SOL) staking](https://www.gemini.com/blog/solana-sol-staking-is-now-available-on-gemini), introducing the brand new [Gemini Referral Club](https://www.gemini.com/blog/welcome-to-the-gemini-referral-club-invite-your-friends), and making impactful [updates to the Gemini mobile app](https://www.gemini.com/blog/weve-updated-the-gemini-mobile-app-heres-whats-new). 

## Enhancing the Gemini User Experience

__Weekly Market Updates.__ In March, we launched our Weekly Market Update series, which explores weekly crypto price movements, provides a quick and informative digest of notable market news, and dives into a crypto topic. [Stay tuned on our blog](https://www.gemini.com/blog) for new Weekly Market Updates every Friday.

__BitcoinBuzz Sentiment Indicator.__ In June, [we unveiled the BitcoinBuzz Indicator](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator), a tool to empower crypto enthusiasts and traders with dynamic insights into the world of Bitcoin and crypto. BitcoinBuzz is a cutting-edge BTC indicator that offers a comprehensive view of price movements. By harnessing in-depth sentiment analysis, BitcoinBuzz combines news sentiment, on-chain BTC flows, Gemini BTC volumes, BTCUSD price momentum, and BTCUSD breadth.

We have barely scratched the surface of everything our teams accomplished at Gemini this year, and there is much more to come! We’re grateful to all our users who choose Gemini and take us along on their crypto journey. We look forward to the next 8 years and more of building and growing. We’re here for good!

Onward and Upward!

Team Gemini

Celebrating Gemini’s 8th Anniversary

Weekly Market Update - Friday, September 29, 2023 - MicroStrategy Buys ~$150 Million Worth of Bitcoin, Bipartisan Group Urges SEC to Approve Bitcoin ETF, and Pudgy Penguins Waddle Into Walmart

Today, we are pleased to unveil the [new Gemini Institutional website](https://gemini.com/institutions), showcasing the breadth of crypto-native solutions available to Gemini’s institutional customers. Our commitment to being a secure and regulated onramp to crypto for institutions goes beyond just providing a best-in-class crypto trading platform: we strive to deliver a holistic experience that starts the moment you land on our institutional website.

### Supporting Diverse Customers Across the Institutional Ecosystem

Gemini’s institutional customers encompass a diverse range of entities, including businesses, professional traders, private wealth clients, institutional investors, fintechs, and banks. The variety of customers we serve has required us to tailor specific product features within our crypto-native ecosystem to meet the unique needs of each segment. 

With our redesigned website, prospective customers can now map their business requirements directly to the products and services we offer. The website streamlines the process of exploring the features we provide across our institutional product suite, and serves as a dedicated entry point into the Gemini Institutional ecosystem. 

<details>inline</details>

We’re also thrilled that earlier this year we made significant improvements to our institutional onboarding experience, introducing a simplified process that enables most institutions to complete their applications within 20 minutes.

We invite you to explore the new [Gemini Institutional website](https://gemini.com/institutions) and discover how Gemini can help your business attain its crypto goals. Your feedback is essential to us as we continue to shape Gemini to meet your institutional requirements. Please reach out to us at [institutional.team@gemini.com](mailto:institutional.team@gemini.com) with any questions. 

Thank you for considering Gemini as your institutional partner for all things crypto. Stay tuned for more updates as we continue to evolve to meet the needs of institutions.

Onward and Upward!

Team Gemini

A secure and regulated onramp to crypto for businesses, professional traders, private wealth clients, institutional investors, fintechs, and banks.

Group 2147210743

Institutional Landing Page

Unveiling the New Gemini Institutional Website: Building Crypto-Native Solutions for Institutions

Weekly Market Update - Friday, September 22, 2023 - Mt. Gox Repayments Delayed for a Year, Fed Holds Rates Steady, and Optimism’s Third Community Airdrop

- __Gemini continues to be at the forefront of crypto innovation by allowing users to add passkeys for two-factor authentication to their accounts__
- __Passkeys provide two major advantages over other account authentication methods: increased security and ease of use__
- __Passkeys have been adopted by industry leaders like Microsoft, Apple, and Google__

At Gemini, we are committed to implementing the highest security standards to ensure our users remain safe on our platform. Today, we are pleased to announce that __Gemini has released support for passkeys, offering industry-leading account security__. 

Passkeys provide users with the highest security standards available, and reduce the effort to ensure your account remains secure. Developed by the Fast Identity Online (FIDO) alliance, passkeys have been adopted by industry leaders like Microsoft, Apple, and Google.

__Gemini now supports passkeys on web, iOS, and Android mobile devices  for two-factor authentication (2FA).__

## Why Use Passkeys?

Passkeys offer two major advantages over other account authentication methods like traditional 2FA: __added security__ and __ease of use__.

__Added Security:__ Passkeys provide an extra layer of protection for your account, making it even more difficult for unauthorized users to gain access.

__Ease of Use:__ Once set up, passkeys offer a seamless authentication experience, with no need to enter a code received via SMS or through an authenticator app.

## What are Passkeys?

Passkeys are a new form of 2FA developed by FIDO, and embraced by technology industry leaders, that add a higher level of security to your account. Unlike other 2FA methods, like receiving one-time codes via an authenticator app or SMS, accounts registered with passkeys are resistant to phishing, significantly increasing account security.

On a technical level, a passkey is an asymmetric key pair (similar to a public and private key used to secure a crypto wallet), stored securely on a device's [Secure Enclave](https://support.apple.com/guide/security/secure-enclave-sec59b0b31ff/web).

[Visit our Help Center for more information on passkeys](https://support.gemini.com/hc/en-us/articles/17421039737243-What-are-passkeys-). 

## How to Enable Passkeys on Your Gemini Account

Enabling passkeys on Gemini is seamless and can be accomplished in a few quick steps:

1. Navigate to your account settings tab on the Gemini Mobile App or web interface (note that Gemini currently only supports passkeys for Apple devices, with Android support coming soon).
2. Click or tap on the "Security" tab. 
3. Find the "Two-Factor Authentication" section and select "Add a Passkey." 

![Blog Supports Passkeys inline01](//images.ctfassets.net/jg6lo9a2ukvr/7AMf6j6ZdiaaV3bzVHwB7c/bf94cae122c57c1dd876dceab592b7d6/Blog_Supports_Passkeys_inline01.png)

Once you’ve created a passkey, it will be securely stored on your device and in your iCloud Keychain. 

When using a passkey to sign in to your Gemini account, instead of receiving a 2FA code or tapping a hardware security key, you’ll be prompted to verify your identity through biometric authentication, usually via a fingerprint or face ID scan. 

Please note that biometric data used in the authentication process is never shared with Gemini nor with any third party acting on Gemini’s behalf. All biometric data is stored locally on your device.

![Blog Supports Passkeys inline02](//images.ctfassets.net/jg6lo9a2ukvr/1O3RQepfPMudCK3PFP6miq/68350ab43f384837196f7a97af58b9ce/Blog_Supports_Passkeys_inline02.png)

## Additional Security Features Are Coming to Gemini

In the coming months, we plan to expand passkey support beyond 2FA to support passwordless login. Once passkeys are supported for login, you won't need to use your username and password to sign in to your account. Instead, you will be able to rely on passkeys for an even more seamless login experience. 

Stay tuned on the Gemini Blog and our social channels for more updates as we continue on our mission to unlock the next era of financial, creative, and personal freedom. 

Onward and Upward!

Team Gemini

Say gm to Passkeys: Add This Industry-Leading Security Feature to Your Gemini Account

Weekly Market Update - Friday, September 15, 2023 - Franklin Templeton Joins Bitcoin ETF Race, Industry Leaders in Singapore for Token2049, FTX Gets Approval to Start Liquidating Its Crypto

Community and innovation have been central pillars in the evolution of crypto. At Gemini, we believe that leaning into those core attributes is crucial to the growth of our industry as we help guide it toward the ultimate goal of providing financial independence and empowerment to users around the globe.

As a company committed to unlocking the next era of financial, creative, and personal freedom, we are more excited than ever __to continue our support for Real Bedford FC, one of the most innovative and dynamic sports teams in the world.__ 

### Building With Bitcoin in the Real World

Based in Bedford, England, [Real Bedford FC](https://www.realbedford.com/) currently competes in the Premier Division of the Spartan South Midlands League, following a successful 2022-2023 season that saw the team secure promotion and 1st place in Division One of the Spartan South Midlands League and the Beds County Cup. 

The club was purchased in 2022 by Bitcoin enthusiast and podcaster Peter McCormack, who aims to __guide the club to the English Premier League__.

By accepting bitcoin at the club for tickets, merchandise and refreshments, the club aims to build support across the Bitcoin community. Through experience, focus, mental strength, hard work, and some luck, the club is pushing for another promotion this year.

Additionally, the club has partnered with Bedford Girls and Ladies who now play as Real Bedford Ladies and have 23 teams ranging from under 7s to the senior team. Having won their first two games of the season, they too are pushing for promotion to the fourth tier of the ladies game.

### Partnering With Bar-Raisers for the Long Term

Real Bedford FC’s dream to reach the top flight of English football is certainly a lofty goal. If the past decade and more of crypto’s existence has taught us anything, it’s that perseverance, imagination, and community can lead to unprecedented heights. We see those same traits in Real Bedford FC, and we’re thrilled to be along for the ride. 

As the team’s principal partner, we are excited to support a club that lives and breathes Bitcoin, and are looking forward to accompanying their progress. Experiencing the passion that drives Real Bedford FC to succeed makes us proud to support these talented football players and fans.

[Follow Real Bedford FC’s season](https://www.realbedford.com/) on their website and on [Twitter](https://twitter.com/PeterMcCormack)!

Onward and Upward!

Team Gemini

Community and Bitcoin: Our Real Bedford FC Sponsorship Is More Than Advertising

Weekly Market Update - Friday, September 8, 2023 - Spot Ethereum ETF Applications Filed, Visa to Use Solana for USDC Settlement, and New Crypto Accounting Rules Coming

### - Introducing new referral tiers of Recruit, Icon, and Legend, which can earn you up to $5,000 USD per referral
### - When your referral trades at least $10,000 USD in their first 30 days you both get a percentage of their trading fee revenue for a year
### - The more they trade, the more you both earn: up to 25% of their trading fees for a year!

Crypto is about community. Today, we are thrilled to introduce [__the Gemini Referral Club__](https://www.gemini.com/referral-club), featuring a tiered revenue share (revshare) rewards program that can earn you up to $5,000 USD per referral! 

[__Learn more about the Gemini Referral Club here.__](https://www.gemini.com/referral-club)

The new tiered rewards program complements [our existing $15 USD referral bonus](https://www.gemini.com/blog/build-your-crypto-community-with-geminis-new-usd15-referral-offer), with all rewards deposited in your account in the crypto of your choice. We are also thrilled to expand our rewards footprint to more countries around the globe, with South Korea and Taiwan support coming soon. 

*Make sure to update your Gemini app to the most recent version to access the Gemini Referral Club.*

<details>sign up</details>

Our new premium tiers, __Icon__ and __Legend__, allow you to share trading fee revenue with your referrals, earning “commissions” on trades for 12 months from the time your referral signs up! We also offer “level-up” options for referrers to earn even more trading fee revenue when they trade within the premium levels.

## What is the Gemini Referral Club?

In addition to the $15 USD in the crypto of your choice for referees that meet the $100 USD trading requirement in the first 30 days, new premium tiers have been added for referees who trade large volumes in their first 30 days on Gemini. 

Depending on the referral trading volume, starting at $10,000 USD, both referrer and referee will receive a percentage of trading fee revenue “commissions” of your referral’s trades for a 12-month period. 

Check out the chart below for more details on premium tier trade requirements.
![Tier Matrix](//images.ctfassets.net/jg6lo9a2ukvr/6cbW6Zb9tDjAcBHpX0dY9R/f6fd1da11654b3c20cb97b42af7f675d/Tier_Matrix.png)

## How to Refer Friends and Family

1. Visit __the Gemini Rewards hub__ by selecting the account icon from the main navigation, then tapping on Rewards.
2. Select "__Refer friends__,” copy your unique referral link, share your link via social media, or invite family or friends directly through your phone and email contacts.
3. Once someone signs up with your referral link and places __at least $100 USD__ worth of trades within 30 days of signing up, you both will receive $15 USD in the crypto of your choice. 
4. __Gemini Referral Club Bonus:__ If your referral trades at least $10,000 USD in their first 30 days of signing up, then you will both receive a percentage of trading fee revenue from all of your referral’s trades during a 12-month period! 

## Track Your Referrals

After you’ve sent a referral invite, you can track the progress of your referral towards achieving referral rewards. When the reward is pending in the first 30 days since a referral signup, it will appear in the Pending table. You can click on each table row to learn more about the status of your referral. 

The communities we build today will be the foundations of our industry tomorrow. We can’t wait to welcome you and your friends to the Gemini Referral Club!

Onward and Upward!

Team Gemini

Welcome to the Gemini Referral Club — Invite Your Friends and Earn Up To $5,000 Per Referral

### - On average, Gemini cardholders collected over $225 USD in crypto rewards over the past year.
### - Cardholders have used the Gemini Credit Card at over one million unique merchants in over 175 countries
### - Over 50% of Gemini users select BTC for rewards, and over 25% of users select ETH

As we celebrate one year of crypto rewards, we want to reflect on an amazing year by highlighting some of the exciting stats and product enhancements that have defined [the Gemini Credit Card’s](https://www.gemini.com/credit-card)* first year. 

First, however, we want to extend a warm thank you to all Gemini Credit Card users who have invited Gemini into their day-to-day lives, one swipe at a time. None of this would be possible without loyal cardholders like you!

<details>signup link</details>

Let’s take a look at what Gemini Credit Card holders have been up to this year, what we at Gemini have done to build a world-class crypto credit card experience.**

### Statistics on the usage and growth of the Gemini Credit Card

- __Crypto Rewards:__ Gemini cardholders have earned over $225 USD in crypto rewards, on average.
- __BTC vs. ETH rewards:__ Over 50% of Gemini users select BTC for rewards, and over 25% of users select ETH.
- __Over 175 countries and 1 million merchants:__ Cardholders have successfully used their card at over one million unique merchants in over 175 countries!
- __Hungry for crypto rewards:__ 33% of all transactions using the Gemini Card were at restaurants and 24% at grocery stores.

### Product updates that enhance your Gemini Credit Card experience

- [__Merchant reward offers__](https://www.gemini.com/blog/boost-your-gemini-credit-card-rewards-with-new-merchant-offers): You can now get over 5% back at your favorite merchants with unique merchant offers. 
- [__10% gas rewards:__](https://www.gemini.com/blog/earn-10-back-in-crypto-rewards-at-the-pump-and-the-plug) Gemini cardholders who signed up before January 15th, 2023, can earn up to 10% back on gas and EV charging for one year. This offer has ended but stay tuned for future offers like this!
- __Unlimited 3% back on dining:__ Get 3% back on dining with no annual cap. We hope you’re hungry for crypto rewards!
- __Export transaction history:__ You can now conveniently export your transaction history in .csv format directly from the Gemini Web interface or mobile app. 
- __Push notifications:__ You can now opt in or out of receiving push notifications for various purchases and notifications for improved security and convenience.

As we reflect on this momentous year, the growth of crypto adoption globally, and the flourishing Gemini community, we are more optimistic than ever about the future of crypto and the Gemini Credit Card. 

Thank you for your continued support as we continue on our mission to unlock the next era of financial, creative and personal freedom.

Onward and Upward!

Team Gemini

*Gemini Credit Card® is issued by WebBank. Merchant Reward Offers deposited separately. Subject to [Rewards Program Terms](https://www.gemini.com/legal/credit-card-rewards-agreement#section-welcome-to-the-gemini-credit-card-crypto-rewards-program-the-rewards-program), [Cardholder Agreement](https://www.gemini.com/legal/cardholder-agreement), and other applicable terms and conditions. 
**This content is for general informational purposes only and is not investment advice. Buying, selling, and trading cryptocurrency involves risks. You should consult a qualified, licensed advisor before engaging in any transaction. Past performance is no guarantee of future results.

A Year in Review: Celebrating a Year of Crypto Rewards With the Gemini Credit Card

Weekly Market Update - Friday, September 1, 2023 - ETF Ruling Boosts BTC, PEPE Trends Down, X Secures Rhode Island Payments License

Weekly Market Update - Friday, August 25, 2023 - Crypto Prices Stabilize After Drop, Friend.tech Emerges on the Scene, Fed Chair Powell Speaks on the Economy

Weekly Market Update - Friday, August 18, 2023 - Crypto Prices Tumble, Spot Bitcoin ETF Launches in the EU, The Sandbox Completes $100 Million Token Unlock 

Sam Spratt and Nifty Gateway, a Gemini company, have teamed up to deliver *[The Monument Game](https://www.niftygateway.com/collections/sam-spratt-the-monument-game)* — an interactive NFT game pioneering a new dynamic experience in the digital art industry. *The Monument Game* is a competition that combines old techniques and new technology to create a communal layer atop NFT artwork.

In *The Monument Game*, collectors complete the “IX. The Monument Game” digital painting, adding a final digital varnish of their thoughts through observations, connecting Sam’s story, art, and players under a common system. In his words: “Dominion is formed through naming what we see, truth found in consensus.”

## How The Monument Game Works

*The Monument Game* consists of four pillars:

1. __The Painting:__ “IX. The Monument Game.” This is a 1/1 digital painting, offered as a fully on-chain auction.
2. __The Game:__ This is an interactive interface and digitally native experience designed around the 1/1 artwork that allows collectors to explore, observe, and compete atop the 1/1 digital painting by contributing to the art. 
3. __The Ticket:__ “Player” is an edition of 256, Sam’s very first edition. “Player” is an artwork which widens the circle of who enters the world of Luci and lets collectors interact with the 1/1 by leaving an observation, giving a little piece of themselves to *The Monument Game* and competing for The Reward.
4. __The Reward:__ The Council of Luci will serve as the voting body and select the three most observant Players to win *The Monument Game*. The three winners will each be awarded the opportunity to join The Council, marked with one of the three remaining Skulls of Luci (more on Luci and the Council of Luci below).

## The Council of Luci Will Select Three Winners

When the 1/1 auction for “IX. The Monument Game” closes, the game of observation closes as well. The Council of Luci — an exclusive circle of Sam Spratt collectors — will then deliberate on which are the three best observations. The three most observant players, as voted on by The Council, will be awarded the opportunity to join The Council and receive one of the three remaining Skulls of Luci to mark their initiation. 

Experience *[The Monument Game](https://www.niftygateway.com/collections/sam-spratt-the-monument-game)* on Nifty Gateway August 21, 2023 at 7:30pm ET. 

## The Monument Game’s Key Dates

- __Pre-Game Phase:__ August 17
- __Game Launch:__ August 21 at 7:30pm ET
- __Game and Auction Ends:__ August 24 at 7:30pm ET
- __Edition Secondary Starts:__ August 24
- __Reward Reveal slated for:__ August 31

We are thrilled to work with Sam on this pioneering NFT experience, delivering an entirely new way of interacting with digital art to NFT collectors. Let the games begin.

Onward and Upward!

Team Gemini
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)

__Learn more about The Monument Game below:__

__Sam Spratt__ is a New York-based artist focused on lifting up traditional painting philosophy and ancient stories into the digital realm. Sam continues to build out his world, Luci; a story about our path out. Luci debuted in October 2021, and has become one of the most sought after fine art series in digital art. Sam’s award-winning work has found homes in games, films, tv, music, books, and other creative industries. Sam aims to harness the tactility of the physical world, and preserve our most human stories for what’s ahead.

__Luci (pronounced Lucy)__ is a series of digital paintings created by artist Sam Spratt, released as episodic pieces of an evolving story about the rediscovery of our most ancient human values in a post-historic world. The first Chapter was released in October of 2021, and since then, across the eight digital paintings released so far, Sam Spratt’s Luci has generated $1.4 million USD in primary sales and ~$690,000 USD in additional secondary volume. VII. Wormfood was sold at Christie’s for $252,000 USD with 100% of proceeds donated to MAPS to promote psychedelic research and therapies. Sam’s highest single sale was for VIII. Infinite Ceremony for $263,000 USD. 

Sam Spratt Unveils The Monument Game on Nifty Gateway, Creating a New Way to Interact With Digital Art

Weekly Market Update - Friday, August 11, 2023 - PayPal Launches PYUSD Stablecoin, Coinbase Opens Base Layer-2, and Aptos Partners With Microsoft

We are delighted to announce support for the __[XRP Ledger and XRP](https://www.gemini.com/prices/xrp)__, adding a new blockchain to Gemini’s growing list of supported networks!

[__XRP is now available for trading__](https://www.gemini.com/prices/xrp) on our API/FIX and ActiveTrader applications for USD trading pairs, and on the Gemini Mobile App and website for USD, GBP, EUR, CAD, SGD, HKD, and AUD pairs!*

<details>signup</details>

Adding XRP Ledger to our list of supported crypto networks is an important step on our mission to unlock the next era of financial, creative, and personal freedom. 

### Exploring the XRP Ledger and XRP

The XRP Ledger (XRPL) is an open-source and decentralized blockchain powered by a global developer community including key contributors Ripple, the XRPL Commons, the XRPL Foundation, and XRPL Labs. XRP is XRPL’s native token, and is used for payments on the network.

The XRP Ledger was designed to be fundamentally different from [Proof-of-Work (PoW)-based blockchains](https://www.gemini.com/cryptopedia/blockchain-types-pow-pos-private#section-proof-of-work-blockchains), like [Bitcoin](https://www.gemini.com/prices/bitcoin). Instead, it uses a unique consensus protocol known as Proof-of-Association (PoA), which requires nodes to create their own lists of trusted nodes, on which they rely for achieving blockchain consensus. These lists of trusted validators are known as Unique Node Lists (UNLs). Nodes can also use default UNLs recommended as trustworthy by the XRPL Foundation, Ripple, and Coil.

Ripple, which uses XRP to power its crypto solutions business, has the stated aim of increasing the speed and reducing the cost of cross-border transactions and remittances, with XRP serving as a bridge currency for financial institutions exchanging value between multiple fiat currencies. 

With the addition of XRP Ledger, Gemini is now compatible with 13 blockchain networks, including: [Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin), [Ethereum (ETH)](https://www.gemini.com/prices/ether), [Solana (SOL)](https://www.gemini.com/prices/solana), [Litecoin (LTC)](https://www.gemini.com/prices/litecoin), [Bitcoin Cash (BCH)](https://www.gemini.com/prices/bitcoin-cash), [Polkadot (DOT)](https://www.gemini.com/prices/polkadot), [Avalanche (AVAX)](https://www.gemini.com/prices/avalanche), [Cosmos (ATOM)](https://www.gemini.com/prices/cosmos), [Zcash (ZEC)](https://www.gemini.com/prices/zcash), [Filecoin (FIL)](https://www.gemini.com/prices/filecoin), [Dogecoin (DOGE)](https://www.gemini.com/prices/dogecoin), and [Tezos (XTZ)](https://www.gemini.com/prices/tezos).

Learn more about [all the tokens we support for trading and/or custody here](https://www.gemini.com/prices).

Onward and Upward!

Team Gemini

*XRP can be stored in Gemini’s exchange wallet but is not yet available in Gemini Custody.

*Updated: August 16, 2023*

We are delighted to announce support for XRP Ledger (XRP), adding a new blockchain to Gemini’s growing list of supported networks!

Gemini Adds Support for New Blockchain Network: XRP Ledger (XRP)

Gemini Adds Support for New Blockchain Network: XRP Ledger and its Native Token XRP

Today, we are delighted to announce that [Gemini dollar (GUSD)](https://www.gemini.com/dollar) is now supported on Loop Crypto. Integrating with Loop Crypto is an important milestone for GUSD as we continue to expand access to stable on-chain value and payments. 

[Loop Crypto](https://www.loopcrypto.xyz/) addresses a key challenge presented by Web3 — enabling autopay and recurring crypto payments in a simple and secure way. While Web3 and self-custody provide an individual or business with full control over their assets, this control can lead to burdensome approvals each time a subscription, salary payment, or token swap is made. Loop Crypto eases that burden by offering a reliable, trusted payment solution. 

### [Learn more about GUSD](https://www.gemini.com/blog/exploring-gemini-dollar-gusd-a-regulated-and-secure-u-s-dollar-backed)

Adding GUSD to the Loop Crypto ecosystem will allow dozens of Web3 companies to process millions of transactions using GUSD, which offers several key features, including:

- __Dollar-backed:__ GUSD is a U.S. dollar-backed stablecoin that can always be redeemed one-to-one on Gemini at any time.
- __Transparent:__ Attestations of GUSD’s reserves are published monthly by an independent registered accounting firm. GUSD is built on the Ethereum blockchain, allowing anyone to view the total number of GUSD in circulation at any time. 
- __Seamless conversion:__ Easy conversions from GUSD to USD for free. Log in to the Gemini mobile app and on the Market page, tap GUSD to convert for free.

Backed by [a16z](https://a16z.com/), [Archetype](https://www.archetype.fund/), [Alchemy Ventures](https://www.alchemy.com/ventures), and [Reverie](https://www.reverie.ooo/), Loop Crypto brings the “set it and forget it” functionality of Web2 to Web3. Loop Crypto works with leading Web3 companies including [ENS](https://ens.domains/), [Nansen](https://www.nansen.ai/), [Entendre Finance](https://entendre.finance/), [Integral](https://integral.xyz/), [Hash Basis](https://www.hashbasis.xyz/), [Satsuma](https://www.satsuma.xyz/), and is integrated with [Stripe](https://www.loopcrypto.xyz/blog/the-stripe-integration-is-here).

<details>signup</details>

As stablecoins continue to develop globally as a crucial onramp for crypto and Web3, we support Loop Crypto’s mission to make crypto payments more accessible. Loop Crypto customers around the world will now be able to use GUSD to seamlessly transfer between crypto and fiat. 

Onward and Upward!

Team Gemini

GUSD Joins Loop Crypto Ecosystem to Power Crypto Payments

Bitcoin remained below the psychological $30k USD support level. Memecoin BALD spiked and crashed in less than a week as rug pull rumors swirl.

Weekly Market Update - Friday, August 4, 2023 - Ether ETFs and US Credit Downgraded

Weekly Market Update - Friday, August 4, 2023 - Ether Futures ETF Applications Filed, US Credit Rating Downgraded, and Curve Struggles After Exploit

Weekly Market Update - Friday, July 28, 2023 - Crypto Bills Move to House Floor, the Fed Raises Rates, and US Beats Growth Expectations

The collapse of Terra in 2022, the fall of Silicon Valley Bank earlier this year, and the accompanying USDC depegging event have raised critical questions about stablecoins and associated risks. How can investors diversify their stablecoin holdings to mitigate counterparty risk, what types of infrastructure solutions for stablecoin redemption and creation are required to satisfy extreme volumes?

Claire Ching, Gemini’s Head of Institutional, and Kevin Yedid-Botton, Partner at ParaFi Capital, dove into these questions and more during a recent Gemini Webinar. 

<details>youtube link</details>

They explored __stablecoin risk management__, discussed why __stablecoin diversification__ is critical for players in the crypto space, and demystified the __range of components__ underlying these types of crypto tokens, ultimately shedding light on the dynamic stablecoin landscape. 

Below, we tease out three salient takeaways from the conversation between Claire and Kevin. 

### Diversification Can Protect Against the Unexpected

Despite the variety of dollar-based stablecoins, including [Gemini dollar (GUSD)](https://www.gemini.com/dollar), [USD Coin (USDC)](https://www.gemini.com/prices/usd-coin), and [Tether (USDT)](https://www.gemini.com/prices/tether), diversification is central to a sound stablecoin portfolio. A main differentiator between dollar-based stablecoins is their reserve backing composition, with treasury management teams for each issuer using varied approaches to ensure the token’s 1-to-1 backing. 

To highlight the importance of diversification, Claire and Kevin discussed an example from June when the U.S. government was edging closer to its debt ceiling, and was struggling to get the votes in Congress to raise it. Some stablecoin issuers hold a large amount of their reserves in short-term U.S. treasuries. With the looming risk of U.S. debt default, these issuers made adjustments to their collateral reserve strategy in an effort to mitigate any potential fallout. 

Circle, the company behind USDC, publicly shifted a large portion of its stablecoin reserves away from those short-term treasuries into overnight repurchase agreements (another type of short-term loan used by treasury traders). 

Gemini took a different approach to backing GUSD, known as a barbell approach. We adjusted our treasury holdings to avoid maturity dates during the period that a potential government default could occur (with most treasuries maturing before and after that period, hence “barbell"), reducing exposure to the debt ceiling standoff. 

Overall, Tether has a separate strategy. While it holds a large portion of its USDT reserves in treasuries, it also includes allocations to precious metals, bitcoin, secured loans, and other investments. 

The chart below outlines where these different stablecoin issuers hold their reserves, how they responded to the debt ceiling crisis, and what their reserves looked like as of May 31, 2023 (GUSD and USDC) or as of March 31, 2023 (USDT).

![Blog Stablecoins chart (7)](//images.ctfassets.net/jg6lo9a2ukvr/4P7DDdHhqFutM9ApUW0yTz/277391f096983b5759e59d422cfa3800/Blog_Stablecoins_chart__7_.png)

Sources: [GUSD May Attestation](https://assets.ctfassets.net/jg6lo9a2ukvr/3b9wPZkq9B6J7u2RKB30w4/47ca0a037a6fc61a998344bde28604be/Gemini_Dollar_Examination_Report_05-31-23.pdf), [USDC May attestation](https://www.circle.com/hubfs/USDCAttestationReports/2023/2023%20USDC_Circle%20Examination%20Report%20May%202023.pdf), [Blackrock Circle Reserve Fund](https://www.blackrock.com/cash/en-us/products/329365/circle-reserve-fund), and [USDT Quarterly Attestation](https://assets.ctfassets.net/vyse88cgwfbl/24G4DuQ0HE7h7EQE6vGy4J/8a8a170edf687ea07b3f86048af8b87b/ESO.03.01_Std_ISAE_3000R_Opinion_31-03-2023_BDO_Tether_CRR.pdf). (Percentages rounded to the nearest whole number)

These differences in underlying compositions raise important questions. How well do investors understand the composition of stablecoins? Do they fully grasp an issuer’s treasury management strategies and how reserves are managed? Treasury strategies are crucial for an issuer to effectively redeem stablecoins as needed, particularly during times of crisis.

### Ensuring Seamless and Reliable Creation and Redemption 

Ultimately, the seamless creation and redemption of stablecoins should be the primary concern for any stablecoin issuer. Some issuers do that better than others. GUSD, for example, can be created and redeemed on Gemini in a few steps, all you need is a Gemini account. Similarly, USDC, can be created and redeemed through Coinbase and Circle.

In the case of USDT, the average person lacks direct access to the creation or redemptions levers. Instead, they are reliant on the secondary market, which can lead to significant swings in the value of USDT (not preferable given that these tokens are meant to remain “stable”). 

As Silicon Valley Bank collapsed, USDC’s exposure to the bank raised concerns and the token traded as low as $0.88 USD during that fraught weekend. As arbitrageurs sold USDC for USDT, the price of USDT rose nearly 10% on some exchanges, and didn’t fall back to $1 USD for some time as few individuals have an easily accessible venue to redeem their USDT for dollars. 

This year’s banking crisis highlighted the importance of not only having access to multiple market venues for trading stablecoins, but also the need for institutions to diversify their avenues for creating and redeeming stablecoins.

### Understanding the Components Underlying Stablecoins 

When evaluating dollar-backed stablecoin risks, investors should consider not just the token itself, but also multiple layers of underlying technology and financial infrastructure. The bedrock is the U.S. government, since dollar-backed stablecoins are ultimately U.S.-based and track the value of the dollar.

[Explore different types of stablecoins here](https://www.gemini.com/blog/understanding-stablecoins-theyre-not-all-created-equal). 

There are other elements to consider, too. Banking institutions, trust companies, insurance, blockchain networks, and smart contracts all come into play as other important components to evaluate when assessing a stablecoin. These components create a nested layering of financial and technological infrastructure that must come together seamlessly for the efficient functioning of stablecoins. 

The variation in these components shows that all stablecoins are not created equal, and highlights how stablecoin diversification can help investors more effectively manage risk.

[Click here to learn more about GUSD and to view our monthly reserve attestations](https://www.gemini.com/dollar).

Last month’s [webinar](https://youtu.be/Q2mQcwz_Kwk) with Claire and Kevin set the stage for a greater understanding of stablecoins and the considerations investors should keep in mind. Keep an eye out for more Gemini webinars that will explore important questions in crypto and blockchain. 

Onward and Upward!

Team Gemini

stablecoins (1)

Claire Ching and Kevin Yedid-Botton discuss stablecoin risk management, diversification, and more.

Stablecoin Webinar

Gemini Webinar Recap: Exploring Stablecoin Risk Management and Diversification

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we explore decentralized applications (dApps).*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#BitcoinBuzz Indicator" target="">__BitcoinBuzz Indicator__</a> 
<a href="#What Happened This Week" target="">__Crypto News__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 4.65% | $29,892
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 5.52% | $1,893
---
[Merit Circle (MC) Price](https://www.gemini.com/prices/merit-circle) | ⬆️ 34.20% | $0.213
---
[Maker (MKR) Price](https://www.gemini.com/prices/maker) | ⬆️ 25.80% | $1,161
---
[Liquity (LQTY) Price](https://www.gemini.com/prices/liquity-usd) | ⬇️ 20.90% | $1.215
---
---

Crypto prices as of Friday, July 21, 2023, at 11:10am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![BTCBuzz bar new](//images.ctfassets.net/jg6lo9a2ukvr/1rWHPHvYasYs5iGkEwAdNj/cd2a9053ae449b5e2bd8de0d6cb7667b/BTCBuzz_bar_new.png)

![072123 Dial](//images.ctfassets.net/jg6lo9a2ukvr/1lOxbWJPWjd8eeQtyjyxgN/772596095fcd4d5cbaf9d2b295eacd53/072123_Dial.png)

*[BitcoinBuzz](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator) data as of 5:00pm ET on July 20, 2023.*

The BitcoinBuzz Sentiment Indicator had its fourth week in the Buzzing Chatter range as news sentiment and Gemini BTC volumes remain at the top of their ranges. Following on the heels of the positive sentiment around [bitcoin ETF applications](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco) in June and early July, last week’s ruling stating that XRP traded on exchanges [is not a security](https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security) further bolstered crypto news sentiment. 

Onchain BTC flows and BTCUSD price momentum values both fell considerably this week as [BTC](https://www.gemini.com/prices/bitcoin) prices tapered off throughout the week after breaking through $31k USD following the XRP ruling. BTC has retraced to ranges observed for the past three weeks.

To learn more about the BitcoinBuzz Indicator and its components, [read our introduction here](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator). Check back every Friday for an updated score! 



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)
### Takeaways 

- __XRP and SOL hold strong as other cryptos slide:__ following a surge in prices after the positive XRP ruling last week, XRP and SOL largely held on to their gains as other cryptos including BTC and ETH failed to sustain a breakout.
- __Fed expected to raise rates again:__ the U.S. Federal Reserve is largely expected to raise rates once more at its July 26 meeting. The outlook on further rate increases later this year is unclear, though expectations suggest next week’s hike to be the last one for a couple months amid slowing inflation. 
- __Aave launches new algorithmic stablecoin:__ Aave (AAVE) launched a U.S. dollar-pegged algorithmic stablecoin, GHO. AAVE prices are up +35% over the past month. 
- __Synthetix plans new front-end for derivatives trading:__ Infinex, a new derivatives trading platform, was presented this week by Synthetix founder Kain Warwick. SNX is trading up ~20% over the past seven days.

<details>signup link</details>

### XRP and Solana (SOL) Maintain Gains After Blockbuster Ruling

Select tokens have managed to breakout and sustain their rally after a federal judge ruled last week that [XRP sold on exchanges](https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security) is not a security. [XRP](https://www.gemini.com/prices/xrp) continues to trade around $0.80 USD, up from $0.47 USD prior to the news. 

Meanwhile, [Solana (SOL)](https://www.gemini.com/prices/solana) continued to show renewed strength this week, briefly trading above $30 USD on Saturday before consolidating around the $26 USD range. [SOL](https://www.gemini.com/prices/solana) traded below $13 USD back in June after being [highlighted as a security](https://www.cnbc.com/2023/06/12/coinbase-sued-by-sec-over-alleged-unregistered-securities.html#:~:text=The%20SEC%20also%20alleges%20at,%2C%E2%80%9D%20according%20to%20the%20complaint.) in the SEC’s lawsuit against Coinbase. The recent Ripple news, however, has investors pointing to the ruling as a proxy for SOL in its own battle of whether or not it is a security. 

### Post-XRP Ruling Price Gains for Bitcoin and Ether Largely Erased 

On the flip side, leading cryptos have seen the majority of their post-XRP-ruling gains erased this week. [Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) broke above the $31k USD resistance last Thursday to hit ~$31.8k USD, while [ether (ETH)](https://www.gemini.com/prices/ether) broke above the psychological $2k USD barrier. However, both have since retraced to ranges we have observed for the past three weeks. This is despite equity markets moving slightly higher this week, with the [S&P 500 gaining ~0.5%](https://www.tradingview.com/symbols/SPX/?exchange=SP), as correlations between crypto and traditional risk assets continue to fall. 

Regulatory pressures and uncertainty are still weighing down the market, with news that Nasdaq has decided to [pause the release of its crypto custody business](https://www.coindesk.com/business/2023/07/19/nasdaq-halts-plan-for-crypto-custody-service-due-to-us-regulatory-conditions/), citing the “shifting business and regulatory environment in the U.S.”

### Eyes on Fed as Another Interest Rate Hike Expected Next Week

Despite [slowing inflation](https://www.politico.com/news/2023/07/12/inflation-rate-united-states-00105848) since the start of the year, the market is expecting a [rate hike of 25 basis points (bps)](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) on July 26, while it looks for clues on any potential future rate hikes. 

The debate now centers on the [potential for further rate hikes](https://www.reuters.com/markets/us/feds-last-rate-hike-coming-july-meeting-economists-say-2023-07-19/) as the Fed seeks to continue the downward inflation trend. [Market expectations](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) are increasing that the Fed is reaching the end of its hiking cycle, as the dollar declined to its lowest level in more than a year against major currencies, with the [U.S. Dollar Index (DXY)](https://www.tradingview.com/symbols/TVC-DXY/) touching below 100 for the first time since April 2022. The [Euro (EUR)](https://www.tradingview.com/symbols/EURUSD/) and [British Pound (GBP)](https://www.tradingview.com/symbols/GBPUSD/) have been notable outperformers against the greenback over the past months. 

### Aave Launches Algorithmic Stablecoin Pegged to the U.S. Dollar

[Aave (AAVE)](https://www.gemini.com/prices/aave), one of the largest DeFi lending and borrowing protocols, launched a [U.S. dollar-pegged algorithmic stablecoin](https://cointelegraph.com/news/aave-protocol-launch-stablecoin-gho-ethereum-mainnet), GHO, last weekend. In a blog post announcing the launch, [Aave outlined](https://aave.mirror.xyz/t7qcU668gSp9teT_SBhJb9_AVcbv8kpzvd0IpP39lBw) that the stablecoin will be overcollateralized and minted using assets supplied on the Aave Protocol as collateral. The interest paid on borrowed GHO will be redirected to the Aave DAO treasury, helping support future developments and the sustainability of the protocol. 

Although the price of [AAVE](https://www.gemini.com/prices/aave) has seen a decline since last Friday alongside the broader market retracement, it is trading +35% over the past month.

### Synthetix Surges As New Derivatives Front-End Unveiled

[Synthetix (SNX)](https://www.gemini.com/prices/synthetix) was one of the top performers this week after founder Kain Warwick revealed plans to incorporate a new derivatives front-end into the Synthetix network, called Infinex. 

[In a blog post](https://mirror.xyz/kain.eth/NHmuyvkRPXB4ck7R38v_ityer-VMZAaIwLGHu1hIDtE) discussing the new product, Warwick addressed the need for a new front-end derivatives platform to live alongside Synthetix’s existing derivatives exchange, Kwenta, on Optimism. Despite the benefits of working on a Layer 2, he outlined that requiring users to bridge their assets to another blockchain and then needing to exchange assets for sUSD to start trading has been a hurdle for many. This friction, along with the need to sign every action, including order entries and cancellations, has left plenty of room for improvement, Warwick wrote. 

Infinex aims to tackle these friction points and looks to offer features similar to centralized exchanges, such as a noncustodial central limit order book. “Infinex's ethos is simple: nothing is sacred but the user experience,” Warwick wrote. The market reacted positively to the news, with [SNX](https://www.gemini.com/prices/synthetix) trading up ~20% over the past seven days as of Friday morning.

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## Exploring Decentralized Applications (dApps)

Since the launch of [Bitcoin](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis), [blockchain protocols](https://www.gemini.com/cryptopedia/blockchain-technology-explained) have constantly been developed and refined to unlock new functionalities and use cases. One of the most expansive and exciting sectors to come out of this drive for innovation has been decentralized applications (dApps). Built on the blockchain, dApps have been developed for a variety of use cases ranging from finance to gaming to web browsing and collecting art.

[Read more about dApp use cases here](https://www.gemini.com/cryptopedia/decentralized-applications-dapps-defi-crypto). 

DApps rely on blockchains, [typically Ethereum](https://www.gemini.com/cryptopedia/dapps-ethereum-decentralized-application), to process data through distributed networks and execute transactions with [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained). These smart contracts can be combined to create powerful software which can be applied across different industries. Just like developers build applications for mobile and desktop devices, dApp developers create applications to function on specific blockchain networks. 

### Web Apps vs. Decentralized Apps

Trello, Slack, and Twitter are just a couple examples of companies that offer [web applications](https://www.gemini.com/cryptopedia/glossary#web-application). The usability of traditional web applications depends on two elements: the front end and the back end. Web applications use software that lives on centralized web servers, not the local operating system of any given device. Devices and servers communicate via coding messages through the [Hypertext Transfer Protocol (HTTP)](https://www.gemini.com/cryptopedia/glossary#hypertext-transfer-protocol-http). For instance, when you open Twitter on your web browser, the feed on display (the front end) is drawn from data held on the company's web server (the back end).

While the internet streams huge amounts of data through massive, centralized servers, a blockchain represents hundreds or even thousands of machines that share the transactional burden over a distributed network. On the front end, decentralized apps and websites use the same technology to render a page on the internet. However, the major difference is on the back end, as dApps communicate with their respective blockchain networks typically through a wallet, which serves as a bridge to the blockchain ecosystem.

[Wallets](https://www.gemini.com/cryptopedia/crypto-wallet-types) manage your blockchain address and the [cryptographic keys](https://www.gemini.com/cryptopedia/public-private-keys-cryptography) necessary to identify and authenticate yourself. Instead of using the HTTP protocol to communicate with the blockchain, dApp wallets trigger smart contracts that interact with the blockchain and execute transactions. A dApp is in essence the front-end user interface (UI) that communicates with smart contracts that transact on the blockchain, at which point a distributed network of [nodes](https://www.gemini.com/cryptopedia/glossary#node) that makes up the blockchain validates and confirms the dApp data. 

While a well-designed decentralized application user experience (UX) may not seem so different from a web app, it differs from the latter in that it eschews servers, HTTP, and limits potential censorship.

### Decentralized App Criteria

A dApp generally meets four main criteria:

- A dApp is typically entirely [open source](https://www.gemini.com/cryptopedia/glossary#open-source), with no entity owning the majority of associated [coins or tokens](https://www.gemini.com/cryptopedia/cryptocurrencies-vs-tokens-difference). By way of its open-source nature, changes to the protocol must be decided via consensus of its users.
- A dApp's data must be stored on a decentralized blockchain.
- A dApp needs to generate digital assets that act as a proof of value.
- A dApp's assets are distributed to network participants as rewards.

Under this definition, many cryptocurrencies can be considered rudimentary versions of dApps, even without smart contract functionality and web interfaces. A blockchain itself can be classified as a dApp. 

### The Future of Decentralized Apps

Although Bitcoin can arguably be called the first dApp, Ethereum has since become the primary growth driver of the dApp ecosystem. This is largely because of its smart contracts, [network effect](https://www.gemini.com/cryptopedia/glossary#network-effect), and user base. As the [DeFi](https://www.gemini.com/cryptopedia/open-vs-decentralized-finance-defi#section-decentralized-finance-101) market continues to expand its use cases and adoption, dApps present an essential on-ramp to crypto for new audiences by deploying user interfaces that emulate conventional web applications while accessing the new capabilities of blockchain. In doing so, dApps are in many ways expanding the functionality of the internet through blockchain.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, July 21, 2023 - XRP and SOL Hold on to Gains Following Pivotal XRP Ruling and Aave Launches New Stablecoin

Weekly Market Update - Friday, July 14, 2023 - Inflation Cools, Favorable Ruling for XRP, and Bitcoin Surges Past $31k USD

Today, we are delighted to announce custody support for [Arbitrum (__ARB__)](https://www.gemini.com/prices/arbitrum), [Stargate (__STG__)](https://www.gemini.com/prices/stargate), [Lido Staked ETH (__stETH__)](https://www.gemini.com/prices/lido-staked-eth), [Wrapped ETH (__wETH__)](https://www.gemini.com/prices/wrapped-eth), and [Helium (__HNT__)](https://www.gemini.com/prices/helium).

__ARB__, __STG__, __stETH__, __wETH__, and __HNT__ are now available to send, receive, and custody on Gemini. 

These tokens will remain available only for custody and crypto transfers at this time.

<details>sign up</details>

Learn more about [all the tokens we support for trading and/or custody here](https://www.gemini.com/prices).

At Gemini, we employ the highest levels of security and custody controls for crypto held on our platform. Gemini is a fiduciary and qualified custodian under New York Banking Law and is licensed by the State of New York to custody digital assets. Further, Gemini Custody is regularly audited and subject to capital reserve requirements and compliance standards similar to that of a traditional financial institution.

We have also secured $75 Million USD in cold storage insurance coverage for Gemini Custody, which covers certain types of crypto losses from our Custody platform.

We look forward to supporting new crypto projects on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

## More about these tokens

### [Arbitrum (ARB)](https://www.gemini.com/prices/arbitrum) 

Arbitrum is a rollup chain designed to support Ethereum scalability by bundling multiple transactions, thereby reducing the Ethereum network load. Arbitrum’s native token, ARB, can be used to pay transaction fees on the Arbitrum network and provides holders with governance rights with ARB holders able to propose and vote on protocol upgrades or changes.

### [Stargate (STG)](https://www.gemini.com/prices/stargate) 

Stargate is a cross-chain bridge protocol that facilitates native asset transfers between blockchain networks. The platform simplifies these types of swaps by reducing the steps required to complete a cross-blockchain transfer. STG is Stargate’s governance token and can be used for staking.

### [Lido Staked ETH (stETH)](https://www.gemini.com/prices/lido-staked-eth) 

Lido Staked ETH is a liquid staking solution that allows users to stake their ether (ETH) and receive stETH, which can then be used across the decentralized finance (DeFi) ecosystem. One stETH token represents one ETH token staked on Lido, and its value combines the value of initial ETH deposit with earned staking rewards. stETH tokens are minted when a user deposits ETH and are burned when the ETH is redeemed. 

### [Wrapped ETH (wETH)](https://www.gemini.com/prices/wrapped-eth) 

Wrapped ETH is a tokenized version of ether (ETH) that allows users to interact with a variety of Ethereum decentralized applications (dApps). wETH is an ERC-20 token making it interoperable with other ERC-20 tokens. wETH can be used to stake, yield farm, lend, and provide liquidity to various liquidity pools. Unlike ETH, wETH can be used on alternative blockchain networks like Binance, Polygon, Solana, and Cardano. The price of wETH is equal to ETH as it maintains a 1:1 wrapping ratio.

### [Helium (HNT)](https://www.gemini.com/prices/helium)

Helium is a blockchain-based, decentralized wireless network. It is built on what is known as Proof of Coverage. The Helium network provides wireless connectivity by routing data through Helium Hotspots to internet-connected devices that use Helium's LongFi protocol. HNT, Helium’s native token, is used to 1) reward Helium Hotspot operators, and 2) to create Data Credits (DCs) which can be produced by burning HNT. Data Credits pay for transaction fees on the Helium network.

Gemini Now Supports Arbitrum (ARB), Stargate (STG), Lido Staked ETH (stETH), Wrapped ETH (wETH), and Helium (HNT) for Custody

### [Gemini Fund Solutions (GFS)](http://gemini.com/institutions#fundsolutions) is the leading provider of custody, clearing/settlement, trading, and other capital markets services specifically designed for crypto exchange-traded funds (ETFs), closed-end funds (CEFs), and other fund vehicles. 

Founded in 2020, __GFS is the first and largest [unified offering for fund managers](https://www.gemini.com/blog/gemini-fund-solutions-a-unified-offering-for-fund-managers) in the crypto industry__. Gemini has helped pioneer the crypto custodian and ETF industry, dating back to our founders Cameron and Tyler Winklevoss submitting the first ever bitcoin ETF application in 2013. 

GFS has operated in the crypto ETF space for the past ~3 years with billions of dollars in assets under management (AUM) and clients across the globe. With the spot ETF landscape in the United States potentially shifting in the coming weeks and months, we are prepared to support spot ETF products in the US when such funds are approved by regulators. 

__Proven Track Record of Operational Excellence__ 

GFS has a long track record of successful and smooth operations, helping clients custody, trade, and settle their fund operations. Our clearing and settlement infrastructure is the only institutional solution currently available to fund managers that enables fund operations processes via API, thereby reducing manual processes and mitigating operational risk.

GFS supports fund issuers every step of the way throughout onboarding and implementation and provides technical support and ongoing operational expertise to ensure seamless integration into their systems and workflow. GFS custodies and supports numerous bitcoin ETFs, with Purpose Investments, Galaxy, CI Global Asset Management, and Evolve Funds Group among the sponsors. 

__Highest Regulatory and Compliance Standards__ 

GFS meets the industry's highest financial and security compliance standards. Gemini has completed [SOC 1 Type 2](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto) and [SOC 2 Type 2 examinations](https://www.gemini.com/blog/gemini-completes-soc-1-type-2-and-soc-2-type-2-examinations-leading-crypto), certified by Deloitte, a fundamental requirement for safely managing financial products. 

Assets custodied with Gemini Trust Company are segregated for the sole benefit of the fund owners, fully backed 1:1, and not commingled with other users’ assets in an omnibus account. __GFS is fully committed to maintaining the highest regulatory standards as the industry evolves.__ 

__Market Surveillance Sharing Agreements__ 

Gemini is working closely with fund advisors, exchanges, and regulators on market surveillance sharing agreements (SSAs). Gemini has SSAs in place with two major US exchanges, and is actively engaged with all other major exchanges. 

Gemini has worked with the concept of SSAs for years. The Winklevoss Bitcoin Trust application was the first spot bitcoin exchange traded product (ETP) to include such an agreement. In 2018, SEC Commissioner Hester M. Pierce issued a [public dissent](https://www.sec.gov/news/public-statement/peirce-dissent-34-83723) arguing that the market SSA between Gemini and Bats BZX Exchange (acquired by CBOE in 2017) satisfies the statutory requirements, and that the SEC should permit the listing and trading of the ETP. 

We believe that SSAs are one of the crucial items on the road to approval of a spot bitcoin ETF. We are also committed to supporting our fund partners if new requirements are created under a constructive regulatory framework and will continue monitoring all developments on this front. 

__A United Offering for ETF Issuers__

The process for launching a crypto fund can be fragmented and disjointed. Our regulated and secure platform is custom-built for institutions seeking a swift go-to-market blueprint that allows fund managers to seamlessly offer crypto products to their clients while managing all of the underlying infrastructure in a single place.  

As the industry enters the next stage in its evolution, spot ETFs can provide the opportunity to usher in the next big wave of incremental capital in the industry. GFS provides rapid, reliable, and comprehensive access with the highest regulatory standards to the world of crypto through traditional investment vehicles.

We invite fund managers seeking to explore a crypto fund offering to reach out to [GFS@gemini.com](mailto:gfs@gemini.com) and connect with our team with expertise in both crypto and ETF capital markets.

Onward and Upward!

Team Gemini

Gemini Offers the Best-In-Class Unified Platform for Crypto ETFs and Other Exchange-Traded Products

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss block explorers.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#BitcoinBuzz Indicator" target="">__BitcoinBuzz Indicator__</a> 
<a href="#What Happened This Week" target="">__Crypto News__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 0.88% | $30,337
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 1.03% | $1,869
---
[Goldfinch (GFI) Price](https://www.gemini.com/prices/goldfinch) | ⬆️ 33.10% | $0.458
---
[Storj (STORJ) Price](https://www.gemini.com/prices/storj) | ⬆️ 16.20% | $0.3546
---
[Maker (MKR) Price](https://www.gemini.com/prices/maker) | ⬆️ 15.10% | $938.70
---
---

Crypto prices as of Friday, July 7, 2023, at 11:40am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![BTCBuzz bar new](//images.ctfassets.net/jg6lo9a2ukvr/1rWHPHvYasYs5iGkEwAdNj/cd2a9053ae449b5e2bd8de0d6cb7667b/BTCBuzz_bar_new.png)

![0707 Dial](//images.ctfassets.net/jg6lo9a2ukvr/qBFtrzuSZFQm8sZCmb68h/0ab3a9364b637f20a3b0f245bcec0969/0707_Dial.png)

*[BitcoinBuzz](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator) data as of 5:00pm ET on July 6, 2023.*

The BitcoinBuzz Sentiment Indicator remained largely unchanged this week as it continues to sit in the __Buzzing Chatter__ range. We emerged from Buzzing Shift last week as a flurry of spot [bitcoin ETF applications](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco) dominated the crypto news cycle. While the news sentiment has cooled slightly, it remains strong as bitcoin ETF hopefuls refiled their applications [to cure some concerns](https://www.coindesk.com/markets/2023/06/30/bitcoin-tumbles-on-report-of-sec-saying-spot-btc-etf-filings-inadequate/) raised by the SEC. 

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) prices have remained stable over the past few weeks, holding around the $30k USD range, a key psychological support level. __BTCUSD price momentum__ remains at the top of the range, reflecting continued positive BTC price movement. __BTCUSD breadth__ has also kept steady, as BTC shows relative strength over the past year. 

To learn more about the BitcoinBuzz Indicator and its components, [read our introduction here](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator). Check back every Friday for an updated score! 



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)
### Takeaways 

- Bitcoin (BTC) continued to hold above $30k USD as spot bitcoin ETF applicants refiled applications to include more details on their surveillance sharing agreements. 
- BlackRock CEO Larry Fink said Bitcoin is “digitizing gold” as his firm vies to be among the first to offer a spot bitcoin ETF in the U.S., marking a shift in tone from when he criticized Bitcoin as a vehicle for money laundering in 2017. 
- Reports on Thursday and Friday painted a mixed picture of the U.S. job market. A hot ADP employment report released Thursday was followed by a cooler nonfarm payroll report on Friday morning.
- According to U.S. Federal Reserve June meeting minutes, there was more disagreement than expected among policymakers on whether to raise rates, with expectations for further hikes at their July meeting above 90%. 
- Azuki Elementals NFT drop caused the Azuki floor price to crash as community members criticized strong resemblance to previous NFTs and artwork mistakes. 

<details>signup link</details>

### Bitcoin (BTC) Remains Strong as ETF Hopefuls Update Applications

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) held above the key psychological $30k USD support level throughout the Fourth of July week, but failed to initiate another leg higher. BTC rallied above $31.3k USD on Monday following the news that multiple asset managers had amended and resubmitted [their applications for a spot bitcoin ETF](https://www.coindesk.com/tech/2023/07/03/blackrock-bitcoin-etf-application-refiled-naming-coinbase-as-surveillance-sharing-partner/). BlackRock, [Fidelity](https://www.coindesk.com/policy/2023/06/30/coinbase-will-be-fidelitys-surveillance-partner-for-bitcoin-etf-refiled-application-says/) and [Valkyrie](https://decrypt.co/147405/valkyrie-refiles-bitcoin-etf-coinbase-surveillance-sharing-partner) refiled their applications with more specific details about their surveillance-sharing agreements. 

The refilings [came after reports](https://www.coindesk.com/markets/2023/06/30/bitcoin-tumbles-on-report-of-sec-saying-spot-btc-etf-filings-inadequate/) that the SEC communicated to the applicants that the asset managers needed to list the exchange and trading venues for the funds, which was the SEC’s main concern with previously rejected bitcoin spot ETF applications.

[BTC prices](https://www.gemini.com/prices/bitcoin) shifted lower again on Tuesday during the Fourth of July holiday in the U.S., but saw a large spike in the early hours of Thursday, jumping from ~$30.5k USD to ~$31.4k USD. 

[Ether (ETH)](https://www.gemini.com/prices/ether) attempted to gain back some ground on BTC this week, stopping just short of the $2k USD mark on Monday and moving above 0.064 on the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/). This was short-lived, though, as it dropped back to the 0.062 level as BTC and the increasing optimism of a spot BTC ETF approval remained in the spotlight. Despite regulatory headwinds from the SEC, there have also been some bright spots in other altcoins, such as [Solana (SOL)](https://www.gemini.com/prices/solana), which has rallied more than 45% since its June 10 low. 

### BlackRock CEO Fink Heaps Praise on Bitcoin, Shifting Tone

In a Wednesday interview, BlackRock CEO Larry Fink said that [Bitcoin was “digitizing gold.”](https://decrypt.co/147409/larry-fink-blackrock-ceo-bitcoin-digitizing-gold-international-asset) The comments came on the heels of BlackRock leading a pack of traditional financial institutions in filing to launch a spot bitcoin ETF. 

[Fink described Bitcoin](https://www.coindesk.com/business/2023/07/05/blackrock-ceo-larry-fink-says-bitcoin-could-revolutionize-finance/) as “an international asset” that can be used as a “hedge against the onerous problems of any one country, or the devaluation of your currency whatever country you’re in.” This represents a significant reversal from Fink’s comments in 2017 when he criticized Bitcoin as an “index of money laundering.” 

### Jobs and Payroll Reports Offer Mixed Picture of U.S. Job Market

Two reports this week provided a mixed picture of the U.S. job market. A hot ADP employment report released Thursday was followed by a cooler nonfarm payroll report on Friday morning. 

On Thursday, the [ADP National Employment report covering June](https://www.reuters.com/markets/us/us-private-payrolls-beat-expectations-june-adp-2023-07-06/) non-farm payroll numbers showed 497K jobs were added vs. ~225K expected and 267K reported in May 2023. [Wages increased 6.4%](https://www.cpapracticeadvisor.com/2023/07/06/adp-report-shows-employment-rose-by-497000-in-june-pay-up-6-4/81790/) year-over-year. 

While the ADP jobs report is not as closely followed by the media, the June report was particularly strong. This put markets on edge ahead of the Friday jobs report as yields spiked while [stocks](https://www.tradingview.com/symbols/SPX/?exchange=SP) and [crypto](https://www.gemini.com/prices/bitcoin) sold off. For example, the [2-year U.S. Treasury](https://www.cnbc.com/quotes/US2Y) yield rose to ~5%, the highest level since March 2023. 

The Friday jobs report met expectations with the [unemployment rate at 3.6%](https://www.cnbc.com/2023/07/07/jobs-report-june-2023-.html), down 0.1% from May. Job creation came in below expectations at 209k for June, the slowest since December 2020. Stocks were largely even on Friday morning, as the market digested the news. 

### June Fed Minutes Suggest High Likelihood of Restarting Interest Rate Hikes

The U.S. Federal Reserve’s June meeting minutes were released on Wednesday, [pushing stocks](https://www.tradingview.com/symbols/SPX/?exchange=SP) lower as commentary came in [more hawkish than expected](https://www.cnbc.com/2023/07/05/fed-minutes-july-2023-.html). The minutes showed division among policymakers on whether to pause rate hikes at the June meeting. 

Despite opting for a pause in June, most members indicated that further interest rate hikes are likely as inflation remains elevated, the labor market remains tight, and economic activity continues to be stronger than anticipated. Market expectations for an additional rate hike in the July meeting [now stand well above 90%](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html).

### Azuki NFT Prices Drop Amid Backlash Against Elementals Collection

One of the most popular NFT projects, Azuki, [launched its Azuki Elementals collection](https://www.coindesk.com/web3/2023/06/30/azuki-is-rebuilding-after-its-elementals-mint-mishap/) last week. The new collection, however, appeared to closely resemble the originals and contained various artwork mistakes, with community members expressing their disappointment at the launch. 

As a result, original Azuki NFTs saw [a large decline in floor prices](https://www.coindesk.com/web3/2023/06/28/azuki-nft-prices-slide-44-after-creator-releases-basically-identical-elementals/) with the prices falling from a high [above 17 ETH](https://opensea.io/collection/azuki/analytics) in June to [below 6 ETH](https://opensea.io/collection/azuki/analytics) at one point this week. Some of the price decrease could be attributed to a wider sell-off across the NFT sector, with some of the largest collections in the space seeing significant drops such as Bored Ape and Mutant Ape collections hitting [below 30 ETH](https://opensea.io/collection/boredapeyachtclub/analytics) and [5 ETH floor](https://opensea.io/collection/mutant-ape-yacht-club/analytics) prices, respectively, floors not seen since the end of 2021.

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## What are Block Explorers?

Similar to how search engines are used to explore the web, block explorers are used to explore blockchains. They provide an online interface for searching a blockchain, and enable you to retrieve data about transactions, addresses, blocks, fees, and more. Each block explorer provides data about a particular blockchain, and the type of information included will vary depending on the architecture of the blockchain it serves.

### A Window Into the Blockchain

[Blockchain technology](https://www.gemini.com/cryptopedia/blockchain-technology-explained) is often lauded for its transparency, and block explorers are a key part of this value proposition. 

While every block explorer contains information about one particular blockchain, some sites host block explorers for [multiple blockchains](https://www.gemini.com/cryptopedia/blockchain-types-pow-pos-private). Popular block explorer providers for Bitcoin and Ethereum include etherscan.io, blockstream.info, and CoinMarketCap, among others.

### Why Use a Block Explorer?

Block explorers have utility for traders, [miners](https://www.gemini.com/cryptopedia/crypto-mining-operation-crypto-mining-rig-asic-miner), [validators](https://www.gemini.com/cryptopedia/glossary#validator), businesses, and enthusiasts alike. You can use a block explorer to check the status of a transaction if you’re buying or selling crypto. You can also find information associated with your blockchain address, including your transaction history, the total value of the assets held at the address, the total amount of crypto received, and the total amount of crypto sent, among other data points.

Miners can use block explorers to check if they’ve successfully mined a block, and businesses can analyze transaction data related to their projects. Likewise, anyone can use block explorers to monitor the activity of [whales](https://www.gemini.com/cryptopedia/glossary#whale) and individuals with known blockchain addresses. For example, monitoring addresses known to belong to [Satoshi Nakamoto](https://www.gemini.com/cryptopedia/glossary#satoshi-nakamoto) is a favorite community pastime.

Block explorers also provide information on the latest transactions and blocks, [block difficulty](https://www.gemini.com/cryptopedia/glossary#block-difficulty), [hash rate](https://www.gemini.com/cryptopedia/glossary#hash-rate), [block height](https://www.gemini.com/cryptopedia/glossary#block-height), transaction fees, and transaction volume. Likewise, a block explorer can provide market data such as the [circulating supply](https://www.gemini.com/cryptopedia/glossary#circulating-supply), [maximum supply](https://www.gemini.com/cryptopedia/glossary#maximum-supply), and [market capitalization](https://www.gemini.com/cryptopedia/glossary#market-capitalization-market-cap) of a cryptocurrency.

### How to Use a Block Explorer

When you visit a block explorer site, you will likely see a main search bar that enables you to retrieve specific types of information — typically [wallet addresses](https://www.gemini.com/cryptopedia/glossary#cryptocurrency-address), transaction hashes, and block numbers, though this varies by explorer and by blockchain. Likewise, the homepage of most block explorers often displays data about the latest transactions and blocks.

To view data related to a particular transaction, type the [transaction hash or ID](https://www.gemini.com/cryptopedia/glossary#transaction-id-txid) into the search bar — this will be given to you by your wallet provider when you initiate the transaction. The block explorer will indicate whether your transaction has been confirmed or if it is still processing. You can also view your transaction by searching for the address of the wallet you sent it from. 

These tools provide insight into every aspect of a blockchain’s functioning — from [consensus mechanism](https://www.gemini.com/cryptopedia/glossary#consensus-mechanism) to transaction history — and are an essential tool in navigating the blockchain ecosystem.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, July 7, 2023

We are pleased to announce that you can now stake [Solana (SOL)](https://www.gemini.com/prices/solana) through [Gemini Staking](https://www.gemini.com/staking), allowing you to seamlessly receive SOL staking rewards in your Gemini account. Gemini Staking now supports staking for [Ethereum (ETH)](https://www.gemini.com/blog/ethereum-eth-staking-coming-to-gemini-on-september-29), [Polygon (MATIC)](https://www.gemini.com/blog/gemini-launches-staking-for-polygon-matic), and Solana (SOL). 

__SOL staking is not available to users in the United States or the United Kingdom.__

<details>sign up</details>

### What Is Staking?

Staking is central to [Proof-of-Stake](https://www.gemini.com/cryptopedia/what-is-staking-crypto-proof-of-stake-pos-blockchains) consensus mechanisms, whereby users pledge crypto to securely validate transactions on a blockchain network. Once validated, users who have staked their crypto receive tokens as a reward. 

There are challenges associated with staking, including selecting or running your own validator node and protecting your private keys to ensure the validators are always connected to the network. Small mistakes can lead to network-imposed penalties and the loss of staked tokens. 

### Staking Crypto on Gemini

At Gemini, we simplify and secure the staking process, allowing you to stake your assets with more confidence in just a few steps. And, we protect your staked assets by reimbursing you for penalties imposed by validators on your staked tokens.

[Learn how to stake your crypto on Gemini](https://www.gemini.com/staking). 

Gemini Staking helps customers avoid challenges with staking while earning rewards quickly and securely: 

- __Covered Infrastructure Costs and Gas Fees__ — Gemini will cover any expenses associated with staking and unstaking processes.
- __Slashing Protection__ — Gemini will reimburse you for certain penalties imposed in connection with staking.
- __Institutional-Grade Security__ — With Gemini Staking, customers do not need to manage private keys and the associated risks, and can rely on Gemini’s [industry-leading security features](https://www.gemini.com/security). 

You can learn more about how [staking and Proof-of-Stake blockchains work here](https://www.gemini.com/cryptopedia/staking-rewards-pos-blockchains#section-proof-of-stake-explained). 

We are thrilled to continue building out a robust suite of products that enhance your crypto experience as we advance our mission to unlock the next era of financial, creative, and personal freedom. 

Onward and Upward!

Team Gemini

Solana (SOL) Staking Is Now Available on Gemini

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — with growing interest around a spot bitcoin ETF, we resurface our origins of Bitcoin discussion.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#BitcoinBuzz Indicator" target="">__BitcoinBuzz Indicator__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: The Origins of Bitcoin__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 0.01% | $30,147
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 1.12% | $1,851
---
[Bitcoin Cash (BCH) Price](https://www.gemini.com/prices/bitcoin-cash) | ⬆️ 104% | $292.66
---
[Compound (COMP) Price](https://www.gemini.com/prices/compound) | ⬆️ 82.10% | $55.17
---
[Liquity (LQTY) Price](https://www.gemini.com/prices/liquity) | ⬇️ 23.90% | $0.945
---
---

Crypto prices as of Friday, June 30, 2023, at 10:30am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![BTCBuzz bar new](//images.ctfassets.net/jg6lo9a2ukvr/1rWHPHvYasYs5iGkEwAdNj/cd2a9053ae449b5e2bd8de0d6cb7667b/BTCBuzz_bar_new.png)

![0630 Dial (1)](//images.ctfassets.net/jg6lo9a2ukvr/3EOPsnjf6A6r33lN4s2k3O/35a9ce7bd8c682ef317bd2ba4be1cd6e/0630_Dial__1_.png)

*[BitcoinBuzz](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator) data as of 5:00pm ET on June 29, 2023.*

The __BitcoinBuzz Indicator__ recorded a strong increase in Bitcoin sentiment this week, pushing the Indicator out of the __Buzzing Shift__ range into __Buzzing Chatter__. The __Indicator score__ rose almost 3.5 points to __7.46__ after [last week’s price jump](https://www.gemini.com/prices/bitcoin) and a flurry of [bitcoin ETF applications](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco) that dominated the crypto news cycle over the past few weeks. 

__News sentiment__ had a particularly strong week, increasing from 2.05 to 10. The shift in news sentiment was especially striking as it moved from [SEC enforcement actions](https://decrypt.co/144061/this-week-in-coins-market-crashes-as-sec-slams-binance-and-coinbase) against major exchanges dominating the news cycle earlier this month, to various traditional financial institutions [vying to launch](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco) a spot bitcoin ETF over the past two weeks. __Onchain BTC flows__ likewise increased to the top of the scale, jumping from 6.03 to 10.

To learn more about the BitcoinBuzz Indicator, [read our introduction here](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator). Check back every Friday for an updated score!



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)
### Takeaways 

- __Bitcoin Price Largely Stable:__ Following large price gains last week spurred by a handful of spot bitcoin ETF applications, BTC held steady around the $30.5k USD range. BTC fell a couple percentage points Friday morning, however, after reports that the SEC considered the ETF applications “inadequate.”
- __Fidelity Bitcoin ETF:__ Another large U.S. financial institution joined the bitcoin ETF conversation with a refiled application. A previous Fidelity application to launch a bitcoin ETF was rejected in 2022. 
- __Leveraged Bitcoin ETF:__ The first U.S.-based leveraged bitcoin futures ETF launched this week. Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) had $5.7 million USD in net assets as of Thursday. 
- __Compound (COMP) Rises 70%+:__ Over the past seven days, Compound (COMP) prices rose to over $50 a token as COMP volumes spiked on exchanges. 
- __Coinbase Lawsuit:__ In its answer to the SEC lawsuit filed earlier in June, Coinbase outlined its argument that the tokens listed on its exchange are not securities and therefore fall outside the securities regulator’s purview. 

<details>signup link</details>

### Bitcoin Price Largely Stable After Last Week’s Surge

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) hovered around the $30.5k USD range for most of the week, after soaring past $30k USD last week on the news that BlackRock, Invesco, and other large traditional financial institutions applied to launch [bitcoin exchange-traded funds (ETFs)](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco). BTC dominance [remained above 51%](https://www.tradingview.com/symbols/BTC.D/).

[BTC](https://www.gemini.com/prices/bitcoin) briefly sought to retest $31k USD earlier in the week on rumors that Fidelity was planning to [refile for its own spot bitcoin ETF](https://cointelegraph.com/news/bitcoin-bulls-grill-31k-fidelity-etf-btc-price). The Fidelity news was later confirmed, without spurring much further action in the price of BTC. 

On Friday morning, [BTC](https://www.gemini.com/prices/bitcoin) prices fell a couple percentage points after a report that the SEC considers [the new spot bitcoin ETF applications “inadequate.”](https://www.coindesk.com/markets/2023/06/30/bitcoin-tumbles-on-report-of-sec-saying-spot-btc-etf-filings-inadequate/) The filings helped drive BTC prices up over the past few weeks. [BTC](https://www.gemini.com/prices/bitcoin) sat around $30.2k USD as of Friday morning.

### Fidelity Re-Enters the Spot Bitcoin ETF Race 

On Thursday, Fidelity joined a handful of other major U.S. financial institutions [by filing a spot bitcoin ETF application](https://www.coindesk.com/business/2023/06/29/asset-manager-fidelity-files-for-spot-bitcoin-exchange-traded-fund/) with the U.S. Securities and Exchange Commission (SEC). A previously filed application by Fidelity was [rejected by the SEC in 2022](https://www.reuters.com/technology/fidelity-preparing-submit-spot-bitcoin-etf-filing-block-2023-06-27/), with the agency highlighting concerns around market manipulation of the underlying BTC markets. 

Fidelity joined [BlackRock, Invesco, WisdomTree](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco), and [Valkyrie](https://cointelegraph.com/news/valkyrie-submits-btc-spot-etf-application-to-go-with-its-futures-miners-etfs) as major institutions seek approval for a spot bitcoin ETF. The approval of a bitcoin ETF would allow retail traders to purchase shares representing the value of BTC on major U.S. exchanges, like the Nasdaq.

### Leveraged Bitcoin Futures ETF Goes Live

As buzz around a spot bitcoin ETF continues to grow, the first U.S.-based leveraged bitcoin futures ETF [debuted this week](https://blockworks.co/news/leveraged-btc-futures-etf-debut). Launched by Volatility Shares, the 2x Bitcoin Strategy ETF (BITX) started trading Tuesday on the Cboe BZX Exchange. BITX returns [“correspond generally](https://www.volatilityshares.com/bitx)” to 2x the S&P CME Bitcoin Futures Daily Roll Index’s performance on a given day. As of Thursday, the fund’s [total net assets stood at $5.7 million USD](https://www.volatilityshares.com/bitx).

### Compound (COMP) Rises Over 70% in a Week Following Volume and Outflow Spike

Over the past seven days, the price of [Compound (COMP)](https://www.gemini.com/prices/compound) has jumped 70%+, surpassing $50 a token amid [increased volume and outflows](https://www.coindesk.com/business/2023/06/29/comp-token-rises-by-50-in-4-days-amid-flurry-of-whale-activity-on-binance/) seen on Binance. Overall COMP trading volumes across various trading pairs jumped from an average of $10-$15 million USD from June 11 through June 24 [to ~$170 million](https://www.coindesk.com/business/2023/06/29/comp-token-rises-by-50-in-4-days-amid-flurry-of-whale-activity-on-binance/) on Sunday. The platform further added 276 new users to its ecosystem on Sunday, [the largest user growth](https://beincrypto.com/compound-finance-price-gains-analysis/) since January of this year. 

[Compound Finance](https://www.gemini.com/prices/compound) is an open-source platform for decentralized lending built on the Ethereum network, which allows participants to lend and borrow various cryptocurrencies.

### Coinbase Argues That SEC Has No Purview Over Cryptos Listed on its Platform

In an answer filed Thursday to [an SEC enforcement action](https://www.sec.gov/news/press-release/2023-102) announced in early June, Coinbase [elaborated on its position](https://www.coindesk.com/policy/2023/06/29/sec-has-no-jurisdiction-over-cryptos-on-coinbases-platform-exchange-claims-in-response-to-regulators-lawsuit/?utm_source=Sailthru&utm_medium=email&utm_campaign=FMAJUN2923&utm_term=First%20Mover) that the tokens listed on its platform are not securities and therefore not regulated by the SEC. [In a separate filing](https://storage.courtlistener.com/recap/gov.uscourts.nysd.599908/gov.uscourts.nysd.599908.23.0.pdf), the crypto exchange also argued that its due process rights had been infringed when the SEC brought the case. 

Coinbase’s answer marks its first filing in [the SEC lawsuit](https://www.cnbc.com/2023/06/06/sec-sues-coinbase-over-exchange-and-staking-programs-stock-drops-14percent.html) alleging that it operated an unregistered securities exchange, broker-dealer, and clearing agency, and sold unregistered securities.

-From Team Gemini



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## The Origins of Bitcoin 
(originally posted April 28)

With continued interest in the potential of a bitcoin ETF, today we resurface our discussion of the origins of Bitcoin. Most of us think of Bitcoin as the original cryptocurrency, as it spawned an entirely new asset class. While its impact on the financial system and the wider world has been profound, there were a few much lesser known precursors that laid the foundation for the crypto universe. Today, we look back to the roots of Bitcoin. To read more deeply about this topic [check out this article on Cryptopedia authored by our founders](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis).

### What came before Bitcoin?

Bitcoin has played a unique role in creating a movement to decentralize existing, centralized financial services, but it was not the first attempt at creating digital money.

The notion of scarcity with respect to digital money was famously envisioned by [Nick Szabo](https://www.gemini.com/cryptopedia/search?query=Nick%20Szabo) when he [proposed Bit Gold](https://unenumerated.blogspot.com/2005/12/bit-gold.html) in 1998. B-Money, another conceptual precursor to Bitcoin proposed by Wei Dai, a computer engineer, [Cypherpunk](https://www.gemini.com/cryptopedia/search?query=Cypherpunk), and cryptographer, arose around the same time and is referenced in the Bitcoin whitepaper.

Going even further back, the idea of building cost (or digital scarcity) into a system [using proof of work (PoW)](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Work%20(PoW)) was first conceptualized by Cynthia Dwork and Moni Naor in 1993 as a way to protect Internet services from abuse such as spam. In 1997, an English Cypherpunk named Dr. Adam Back implemented this concept into his project Hashcash, a service aimed at limiting spam and denial of service attacks by requiring a sender to generate a Hashcash token by solving a PoW puzzle.

[Read more about Bitcoin’s precursors here](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis#section-bitcoins-predecessors).

Together, Bit Gold, B-Money, Hashcash, and other early examples of digital money and consensus mechanisms set the stage for Bitcoin.

### Bitcoin arrives on the scene

The [Bitcoin white paper](https://bitcoin.org/bitcoin.pdf) was published by the mysterious [Satoshi Nakamoto](https://www.gemini.com/cryptopedia/is-satoshi-nakamoto-alive-cypherpunk-satoshi-nakamoto-quotes) in 2008 and the network launched in January of 2009 upon the mining of the [“Genesis Block”](https://www.gemini.com/cryptopedia/glossary#bitcoin-genesis-block) — the first block of the Bitcoin blockchain. Bitcoin created a digital currency that operates in a fully-decentralized, trustless manner that allows users to send monetary value to each other through the Internet without the need for trusted, financial intermediaries.

This was made possible by a major breakthrough in its PoW [consensus mechanism](https://www.gemini.com/cryptopedia/search?query=Consensus%20Mechanism). Instead of relying on a majority of [nodes](https://www.gemini.com/cryptopedia/search?query=Node) (known as [“miners”](https://www.gemini.com/cryptopedia/search?query=Miner)) to reach consensus, Bitcoin relies on the majority of hashrate — the network’s processing power — to reach consensus.

[Read more about PoW here](https://www.gemini.com/cryptopedia/blockchain-types-pow-pos-private#section-proof-of-work-blockchains).

Acquiring a majority of the network’s [hash rate](https://www.gemini.com/cryptopedia/search?query=Hash%20Rate) is expensive, making it costly for a miner to tamper with the [ledger](https://www.gemini.com/cryptopedia/search?query=Ledger). Moreover, in doing so, a dishonest miner would forgo the handsome bounties of newly minted bitcoin (known as the [“block reward”](https://www.gemini.com/cryptopedia/search?query=Block%20Reward)) that are awarded approximately every 10 minutes to the “winning” miner who correctly solves the PoW puzzle. Therefore, it is assumed that a rational, economically-motivated miner will commit her processing power toward securing the integrity of the blockchain instead of trying to manipulate it and cheat the system.

This incentive structure has turned digital money, a movement once made up predominantly of computer scientists and cryptographers, into an increasingly mainstream phenomenon.

Check out more about the [history and culture of Bitcoin](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis), its [technical structure](https://www.gemini.com/cryptopedia/how-does-bitcoin-work-blockchain-halving), and how [it's secured by the blockchain](https://www.gemini.com/cryptopedia/how-does-bitcoin-mining-work).

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, June 30, 2023

Through July 23, 2023, Voyager customers impacted by the Voyager bankruptcy __[can create a Gemini account](https://geminiexchange.app.link/e/gnLA8x73zAb)__ to withdraw their crypto in-kind, pursuant to the claims of the distribution process. 

We are pleased to offer a promotional welcome to all Voyager customers who join Gemini. New U.S. customers from Voyager will receive $5 in BTC after they sign up and become verified within 30 days of opening their account ([promo terms apply](https://www.gemini.com/legal/promotional-terms-and-conditions)).

### How to Claim Funds 

Crypto transfers are now enabled and a crypto transfer window, ending on July 23, 2023, has begun. To transfer crypto to Gemini, follow these steps: 

1. On the web interface, navigate to the __[Deposit Page](https://exchange.gemini.com/transfer/deposit)__ on your Gemini account. If you’re using the mobile app, navigate to the __Account tab__, and tap __Receive crypto__.
2. Select the supported crypto from the list.
3. If it’s an ERC-20 token, acknowledge that you’re depositing it from the Ethereum network. 
4. Tap __Copy__ to copy your __Destination Address__.
5. On your Voyager account, initiate a withdrawal to your __Destination Address__. This is a step that you can only initiate on your end and cannot be done by Gemini.

<details>sign up</details>

### What Cryptos Are Supported by Gemini for Deposit?

Gemini supports [over 70 cryptos](https://support.gemini.com/hc/en-us/articles/115005868106-What-cryptos-are-supported-on-the-Gemini-Exchange-). __Please note that Gemini supports the ERC-20 versions of many of these assets__. Before initiating a crypto deposit, confirm that you are sending the ERC-20 version of the token associated with the correct Ethereum contract address. 

You can view the full list of the 70+ cryptos Gemini supports [here](https://support.gemini.com/hc/en-us/articles/115005868106-What-cryptos-are-supported-on-the-Gemini-Exchange-) along with links to the associated contract addresses for each supported ERC-20 token. 

### What happens to cryptos held on Voyager that Gemini doesn’t support?

Any tokens that customers hold on Voyager that aren't supported by Gemini cannot be sent to Gemini. We recommend that you carefully confirm that you are sending only supported tokens to Gemini. 

__Any unsupported tokens sent to your Gemini account may be lost and completely unrecoverable. Likewise, sending tokens to Gemini over an unsupported network will result in a complete loss of funds.__ To reiterate, if Gemini supports the ERC-20 version of a token, make sure to confirm you are sending the ERC-20 version associated with the correct Ethereum contract address.

*__[Click here for a full list of networks and tokens supported by Gemini](https://support.gemini.com/hc/en-us/articles/4408420583835-What-networks-are-supported-for-Crypto-Deposits-and-Withdrawals-on-Gemini-).__*

Any coins that aren’t withdrawn from the Voyager platform during the withdrawal period will be liquidated and distributed in cash to customers.

For more information from Voyager, please read the [Voyager blog](https://www.investvoyager.com/blog/transfers/). 

### Gemini is a Full-Reserve Exchange and Custodian

Gemini is a full-reserve exchange and custodian. This means that all customer funds held on Gemini are held 1:1 and available for withdrawal at any time. We hold customer digital assets in accounts that are segregated from our assets. We do not do anything with your digital assets unless explicitly authorized and directed to do so by you.

In addition to being a full-reserve platform, Gemini Trust Company, LLC is a fiduciary and qualified custodian under the New York Banking Law and is licensed by the New York State Department of Financial Services (NYDFS). NYDFS imposes certain excess capital requirements and compliance standards for all assets held on Gemini. At any given time, Gemini is required to hold capital in excess of customer deposits and must report any material changes in this capital to its regulator.

We look forward to welcoming Voyager customers to our platform as we continue our mission to unlock the next era of financial, creative, and personal freedom for all.

Onward and Upward!

Team Gemini

Voyager

Gemini Welcomes Voyager Customers to Our Platform

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — today we explore basics of liquidity pools.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#BitcoinBuzz Indicator" target="">__BitcoinBuzz Indicator (*NEW!*)__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: What are Liquidity Pools?__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 18.10% | $30,087
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 12.60% | $1,872
---
[Pepe (PEPE)](https://www.gemini.com/prices/pepe) | ⬆️ 66.90% | $0.000001476
---
[Bitcoin Cash (BCH)](https://www.gemini.com/prices/bitcoin-cash) | ⬆️ 36.70% | $142.83
---
[Fetch.ai (FET)](https://www.gemini.com/prices/fetch-ai) | ⬆️ 24.70% | $0.2345
---
---

Crypto prices as of Friday, June 23, 2023, at 10:05am ET. Percentages reflect trends over the past seven days. C[heck out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![BTCBuzz bar new](//images.ctfassets.net/jg6lo9a2ukvr/1rWHPHvYasYs5iGkEwAdNj/cd2a9053ae449b5e2bd8de0d6cb7667b/BTCBuzz_bar_new.png)

![0623 Dial](//images.ctfassets.net/jg6lo9a2ukvr/3rEP4wQSezXAf4ahxFXLMh/0cf977bb3a7c2e60220d3b33ca6ccfcc/0623_Dial.png)

*[BitcoinBuzz](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator) data as of 5:00pm ET on June 22, 2023.*

The BitcoinBuzz Indicator is slightly down from last week, but remains in the Buzzing Shift range. While we saw a significant increase in BTCUSD price momentum WoW, that was offset by BTC selling pressure later in the week largely driven by [activities of BTC whale wallets](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator#Analyzing%20and%20Combining%20the%20Components) that interact with the Gemini Exchange. Crypto news sentiment and BTCUSD breadth also crept up this week. 

To learn more about the BitcoinBuzz Indicator, [read our introduction here](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator). Check back every Friday for an updated score!



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)
### Takeaways 

- __Bitcoin Prices Rise:__ Bitcoin prices soared past $30K USD this week on news that BlackRock, Invesco, and other large traditional financial institutions applied to launch Bitcoin ETFs. 
- __New Bitcoin ETF Applications Promise More Transparency:__ Some of the new bitcoin ETF applications include what are known as surveillance-sharing agreements, which aim to address concerns the SEC has had in the past with similar applications. These agreements would provide more visibility into the underlying bitcoin markets.
- __Rush of Activity in GBTC:__ There was heightened trading activity across bitcoin products spurred by the ETF filings, with the Grayscale Bitcoin Trust showing momentum.
- __UK Interest Rate Hike:__ The Bank of England continued increasing its key interest rate as the United Kingdom struggles with stubborn inflation.
- __First DAO Funded Film Features NFT Characters:__ The Rise of Blus: A Nouns Movie, what is thought to be the first DAO-funded film, was released this week, bringing NFT characters to the screen.

<details>signup link</details>

### Bitcoin Breaks $30K USD Leading Crypto Rally as TradFi Firms File for Bitcoin ETFs

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) surpassed $30K USD on Wednesday, hitting its highest level since April and gaining more than 18% this week. The rally was fueled by bitcoin exchange-traded fund (ETF) filings with the U.S. Securities and Exchange Commission (SEC) over the past week from traditional financial institutions including [BlackRock, Invesco, WisdomTree](https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-new-sec-filings-wisdomtree-invesco), and [Valkyrie](https://cointelegraph.com/news/valkyrie-submits-btc-spot-etf-application-to-go-with-its-futures-miners-etfs). The approval of a BTC ETF would allow retail traders to purchase shares representing the value of BTC on major U.S. exchanges, like the Nasdaq.

The crypto rally was led by BTC, with [BTC dominance](https://www.tradingview.com/symbols/BTC.D/) rising to over 51%, its highest level since April 2021. [Ether (ETH)](https://www.gemini.com/prices/ether) and other altcoins rallied in sympathy, with ETH surpassing $1,900 USD. [BTC had a similar rally](https://www.tradingview.com/symbols/BTCUSD/?exchange=GEMINI) in October and November 2021 when the first [futures-based bitcoin ETF](https://www.coindesk.com/markets/2021/10/19/first-bitcoin-futures-etf-bito-nears-1b-trading-volume-on-first-day/), BITO, sponsored by ProShares, was approved by the SEC. 

### Bitcoin ETF Applicants Focus on Spot BTC Surveillance-Sharing Programs

The inclusion of a [Spot BTC Surveillance-Sharing Agreement](https://blockworks.co/news/surveillance-sharing-bitcoin-etf) in BlackRock’s ETF application is among the nuances differentiating it from previously rejected applications. This type of agreement would attempt to address [concerns the SEC has had in the past](https://cryptoslate.com/sec-denies-vaneck-bitcoin-spot-etf-for-a-third-time-commissioners-dissent/) with approving bitcoin ETFs. The surveillance sharing agreement is [outlined in a filing](https://listingcenter.nasdaq.com/assets/rulebook/NASDAQ/filings/SR-NASDAQ-2023-016.pdf) by the Nasdaq, the venue where the BlackRock ETF would be listed. 

Bitcoin ETFs have been rejected by the SEC for years, [including a recent one](https://www.reuters.com/technology/us-sec-rejects-vaneck-spot-bitcoin-etf-application-third-time-2023-03-10/#:~:text=The%20SEC%20has%20rejected%20a,manipulation%20in%20the%20underlying%20market.&text=Our%20Standards%3A%20The%20Thomson%20Reuters%20Trust%20Principles.) filed by VanEck. The SEC has pointed to the potential for manipulation and shortcomings in surveillance of BTC markets as reasons for rejecting various applications. Instead, the SEC has preferred to approve futures-based ETFs, as the agency can monitor trading activity for futures listed on the [Chicago Mercantile Exchange (CME)](https://www.cmegroup.com/).

A shared surveillance agreement would require the exchanges listing an ETF, like the Nasdaq or CBOE, to have [access to the spot venue](https://blockworks.co/news/surveillance-sharing-bitcoin-etf) (a crypto exchange, or exchanges) where the underlying asset is traded. The [type of information](https://blockworks.co/news/surveillance-sharing-bitcoin-etf) shared could include trading and clearing activity, as well as the identity of traders. Shortly after BlackRock’s filing, a [few other ETF issuers](https://blockworks.co/news/blackrock-bitwise-bitcoin-etf-filings) followed suit and included a sharing surveillance agreement in revised filings.

### Notable Trading Activity in GBTC After ETF Filings

With traders [potentially betting](https://decrypt.co/145326/grayscale-bitcoin-trust-gets-a-bullish-bump-after-blackrock-etf-filing) on the increased likelihood of an approved bitcoin ETF, the [Grayscale Bitcoin Trust (GBTC)](https://grayscale.com/products/grayscale-bitcoin-trust/) discount to net asset value (NAV) [tightened to ~33%](https://www.theblock.co/data/crypto-markets/structured-products/premium-of-gbtc), from as low as ~48% in December 2022. [This discount represents](https://decrypt.co/145326/grayscale-bitcoin-trust-gets-a-bullish-bump-after-blackrock-etf-filing) the difference between the price of GBTC and the price of spot BTC.

[GBTC is a closed-end fund](https://grayscale.com/products/grayscale-bitcoin-trust/), meaning no redemptions are currently permitted. Grayscale has previously said [their goal is to convert GBTC to an ETF](https://grayscale.com/qa-what-converting-gbtc-to-an-etf-would-mean/) once the SEC approves one, which would then allow for the opening of redemptions. 

### Bank of England Continues to Raise Interest Rates Amid Stubborn Inflation

The Bank of England [hiked its key interest rate](https://www.bbc.com/news/live/business-65977222) by 50 basis points to 5% in a surprise decision on Thursday. This is the highest key interest rate level [since April 2008](https://www.bbc.com/news/live/business-65977222). The magnitude of the move outpaces the actions of its G7 peers as the United Kingdom struggles to curb inflation that has [reached double-digit percentages](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2023) year-over-year in recent months. The UK's May consumer price index (CPI) showed [an increase of 8.7%](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2023). 

The [British Pound (GBP)](https://www.google.com/finance/quote/GBP-USD?sa=X&ved=2ahUKEwjv6YzU0df_AhXjGFkFHZh9CAsQmY0JegQIBhAc&window=5D) fell to 1.27 vs. the U.S. dollar (USD) despite the rate increase as the economic concerns outweighed the higher interest rate. The [FTSE 100](https://www.google.com/finance/quote/UKX:INDEXFTSE) declined 0.76% on Thursday. 

### First DAO-funded Animated Film Released

A pilot for the [The Rise of Blus: A Nouns Movie](https://nouns.movie/) was released this week, in what appears to be the first DAO-funded animated film. The project [raised $2.75 million USD](https://www.coindesk.com/web3/2023/06/21/web3-creative-studio-atrium-releases-pilot-episode-of-nouns-movie/) and includes animators who have worked at the likes of Netflix, Pixar, and Marvel. 

The film was funded through a [proposal passed in March](https://www.coindesk.com/web3/2023/03/15/nounsdao-approves-proposal-for-feature-length-nft-movie/) by NounsDAO. It features characters based on 8-bit NFT characters known as Nouns. [According to nft now](https://nftnow.com/news/nouns-dao-and-atrium-launch-first-animated-movie-funded-by-a-dao/), the film “centers around the lively floating cloud city of Blus, wherein a daring 13-year-old Noun uncovers a malevolent scheme by the city’s aristocrats.” The title character bands “together with a motley crew of unlikely allies (other Nouns) to thwart the threat and protect those they hold dear.” 

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## Crypto Liquidity Pools

Crypto [liquidity pools](https://www.gemini.com/cryptopedia/glossary#liquidity-pool) play an essential role in the [decentralized finance (DeFi)](https://www.gemini.com/cryptopedia/open-vs-decentralized-finance-defi) ecosystem. They are a mechanism by which users can pool their assets in a decentralized exchange’s (DEX) [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) to provide asset liquidity for traders to trade crypto more easily. At a high level, liquidity pools provide [liquidity](https://www.gemini.com/cryptopedia/what-is-liquidity-bid-ask-spread-slippage), speed, and convenience when trading on DeFi platforms.

Prior to the rise of [automated market makers (AMMs)](https://www.gemini.com/cryptopedia/amm-what-are-automated-market-makers), crypto market liquidity was a challenge for DEXs across the Ethereum ecosystem. Early on, DEXs were a new technology that usually sported a complicated interface and a relatively low volume of buyers and sellers, making it challenging to find sufficient liquidity on a regular basis. 

AMMs were developed to fix this problem of limited liquidity through the creation of liquidity pools, which offer liquidity providers an incentive to provide supply. Traders can then trade directly with these pools through the use of [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained). 

### What is the purpose of a liquidity pool?

Liquidity pools aim to solve the problem of illiquid markets by incentivizing users to provide crypto liquidity on a specific platform. Known as liquidity providers, these users are incentivized with a share of platform trading fees. 

Trading on liquidity pool protocols like [Uniswap](https://www.gemini.com/cryptopedia/uniswap-decentralized-exchange-crypto-defi) does not require the matching of buyers and sellers. Instead, users can exchange their tokens and assets with a liquidity pool, trading tokens provided by liquidity providers.

Seasoned traders in traditional or crypto markets are well aware of the potential downsides of entering a market with thin liquidity. Whether it’s a low cap crypto or penny stock, slippage is often a concern. [Slippage](https://www.gemini.com/cryptopedia/glossary#slippage) is the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage is most common during periods of higher [volatility](https://www.gemini.com/cryptopedia/volatility-index-crypto-market-price), and can also occur when there isn't enough volume at the selected price to maintain the expected [bid-ask spread](https://www.gemini.com/cryptopedia/glossary#bid-ask-spread) for a large trade.

### How do liquidity pools work?

Crypto liquidity pools are designed in a way to incentivize liquidity providers to stake their assets in the pool. Most liquidity providers [earn trading fees and crypto rewards](https://www.gemini.com/cryptopedia/earn-interest-on-crypto-interest-account-crypto-lending) from the exchanges on which they pool tokens. When a user supplies a pool with liquidity, the provider is often rewarded with [liquidity provider (LP) tokens](https://www.gemini.com/cryptopedia/liquidity-provider-amm-tokens). LP tokens can be valuable assets in their own right, and can typically be used throughout the DeFi ecosystem.

Usually, a crypto liquidity provider receives LP tokens in proportion to the amount of liquidity they have supplied to the pool. When a pool facilitates a trade, a fractional fee is proportionally distributed among the LP token holders. 

Liquidity pools maintain fair market values for the tokens they hold by employing AMM algorithms, which maintain the price of tokens relative to one another within any particular pool. Liquidity pools in different protocols may use algorithms that vary slightly. Uniswap liquidity pools, for example, use a [constant product formula](https://www.gemini.com/cryptopedia/glossary#constant-product-formula) to maintain price ratios. This algorithm helps ensure that a pool consistently provides crypto market liquidity by managing the cost and ratio of the corresponding tokens as the demand increases.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, June 23, 2023

We are excited to announce the expansion of [Gemini Staking Pro](https://www.gemini.com/staking) to the United Kingdom. UK users with 32 ether (ETH) or more can now seamlessly launch dedicated validators on Ethereum, facilitated by Gemini. 

Gemini Staking Pro is already live in the United States (excluding New York), Singapore, Hong Kong, Australia, Brazil, and more than 30 other countries.

### What is Staking Pro?

Gemini Staking Pro is a crypto staking product built specifically for institutions and high-net-worth individuals. Gemini users with 32 ETH or more can run dedicated validators on Ethereum, through Gemini’s simple and [secure](https://www.gemini.com/security) user interface. *Note: UK users can start staking ETH today on the Gemini web interface, with in-app support coming soon.* 

<details>sign up</details>

### Benefits of Staking Pro 

- __Complete control over your Ethereum validators__ — Gemini will set up dedicated Ethereum validators for each Staking Pro client.
- __Validator transparency__ — Access and audit information about each of your validators by using on-chain monitoring tools, including validator, reward payments, and fees.
- __Segregated reward addresses__ — Staking rewards are deposited into a segregated ETH address. You also have the flexibility to withdraw your rewards or all your staked ETH at any time (subject to the relevant unbonding time). 

### Why Stake on Gemini?

Staking is central to [Proof-of-Stake consensus mechanisms](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Stake%20(PoS)), whereby users pledge crypto to securely validate transactions on a blockchain network and receive tokens as a reward. 

However, as you may have experienced before, there are challenges when it comes to running your own validator node. Small mistakes can lead to network-imposed penalties and even losing the tokens you’ve staked (commonly referred to as ‘slashing’). This can make staking a daunting task for the inexperienced.

At Gemini, we simplify the staking process for you. With Gemini operating the validator nodes, users can stake their assets with more confidence and without the technical know-hows. In fact, Gemini will reimburse you for certain penalties imposed in connection with staking. It’s the best of both worlds – the benefit of decentralization with the power of Gemini.

### Start Staking

Getting started is fast, easy, and secure.

1. __[Log in to your verified Gemini account](https://exchange.gemini.com/signin)__ via your web browser. In-app support coming soon!
2. Click the “__Grow__” tab.
3. Select ETH to stake and click “__Start Staking__.”
4. If you already own ETH, you can select “__Transfer trading balance__.” Otherwise, click “__Buy new crypto__,” and you’ll be prompted to choose whether you want to make a one-time or recurring purchase.
5. Confirm the transfer and __start receiving staking rewards__!

*Reminder: to use Gemini Staking Pro you must hold or buy at least 32 ETH.*

[Click here to learn more about Gemini Staking.](https://www.gemini.com/staking)

We are thrilled to continue providing avenues for users around the world to participate in the blockchain ecosystem as we advance our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

*Staking services are provided by Gemini Trust Company and are not regulated by the Financial Conduct Authority.*

Gemini Staking Pro Is Now Live in the UK!

At Gemini, we provide a seamless onramp to the world of crypto for individuals, institutions, and businesses of all sizes. Our core products, the Gemini Exchange and Gemini Custody, can be easily integrated with startups seeking a secure and compliant way to offer crypto investing to their clients. 

Today, we are thrilled to announce our integrations with Shrimpy Advisory and Hedgehog, new wealthtech platforms that aim to automate and simplify smart crypto investments.

### [Shrimpy Advisory](https://advisory.shrimpy.io/)

Shrimpy Advisory is a cryptocurrency investment robo-advisor that makes it easy for beginners to get started in crypto. Shrimpy Advisory features curated baskets of cryptocurrencies within different sectors and automated strategies based on a user’s long-term investment goals. Users with limited experience in crypto can [get started today with no minimum deposit](https://ria.shrimpy.io/signup).

### [Hedgehog](https://hedgehog.app/)

Hedgehog is a crypto robo-advisor that helps institutions and retail clients of all experience levels to automatically manage digital assets across Cefi and Defi. For beginners, Hedgehog recommends one of six stacks based on client investment goals, while more experienced investors can fully customize their asset mixes and strategies. Hedgehog is available on both [App Store](https://apps.apple.com/us/app/hedgehog-crypto/id1616233484) and [Google Play](https://play.google.com/store/apps/details?id=app.hedgehog.android), and has no minimum for either crypto or US dollar investments.

### Powerful Institutional Crypto Tools

Gemini Infrastructure Solutions provides access to Gemini’s powerful crypto products through easy to integrate APIs, and offers white glove support throughout the onboarding process and for the lifetime of the integration. 

<details>inline cta</details>

Our unique sub account feature also enables wealth management platforms to segregate customer accounts and assets for easy reporting and compliance. 

### Full-Reserve Exchange and Custodian

Gemini is a full-reserve exchange and custodian. This means that Gemini holds customer digital assets in accounts that are segregated from our assets. 

In addition to being a full-reserve platform, Gemini Trust Company, LLC is a fiduciary and qualified custodian under New York Banking Law and is licensed by the New York State Department of Financial Services (NYDFS). NYDFS imposes certain excess capital requirements and compliance standards for all assets held on Gemini. At any given time, Gemini is required to hold capital in excess of customer deposits and must report any material changes in this capital to its regulator. Learn more on [the Gemini Trust Center](https://www.gemini.com/trust-center).

We are delighted to welcome Shrimpy Advisory and Hedgehog to the Gemini ecosystem, as we continue on our mission to unlock the next era of financial, creative, and personal freedom. 

If you’re an institution seeking to build support for crypto into your platform, we invite you to reach out to [institutional.team@gemini.com](mailto:institutional@gemini.com) to speak with one of our institutional principals. 

Onward and Upward!

Team Gemini

Gemini Powers the Next Generation of Crypto WealthTech With Shrimpy Advisory and Hedgehog

We are excited to announce our expansion plans in APAC as Gemini’s leadership team recently visited the region on their global odyssey to propel the promise of crypto. Over the next 12 months, we plan to increase our headcount to 100+ in Singapore. Our APAC expansion will also include [an engineering base in India](https://www.gemini.com/blog/gemini-to-expand-global-engineering-and-operations-teams-with-new-india-office).

Our Singapore office will serve as a hub for our larger APAC operations. We believe that APAC will be a great driver of the next wave of growth for crypto and Gemini.

![SG Team](//images.ctfassets.net/jg6lo9a2ukvr/1WTigcPjZ5pTDTfNtEo7Xi/bc4301bcc4edf5b41aa5026f8ee7a1aa/IMG_7744.jpg)

[In December 2020](https://www.gemini.com/blog/gemini-now-supports-the-singapore-dollar-sgd), Gemini launched support for the Singapore dollar (SGD), providing seamless access to crypto for Singapore residents. Gemini also supports the Hong Kong dollar (HKD) and the Australian dollar (AUD).

Our customers throughout APAC can buy, sell, and store dozens of cryptos, with their funds secured by world-class security and storage systems.

We are committed to implementing our international vision for the future of Gemini as we continue on our mission to unlock the next era of financial, creative, and personal freedom for all.

Onward and Upward!

Team Gemini

<details>signup link</details>

Gemini Announces Expansion Plans in APAC

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — today we explore cryptoart and NFTs.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#BitcoinBuzz Indicator" target="">__BitcoinBuzz Indicator (*NEW!*)__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: Cryptoart, NFTs, and the Art Industry__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 4.44% | $25,475
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 10.10% | $1,662
---
[Ren (REN) Price](https://www.gemini.com/prices/ren) | ⬇️ 32.70% | $0.05196
---
[GeoJam (JAM) Price](https://www.gemini.com/prices/geojam) | ⬇️ 31.60% | $0.00062
---
[ApeCoin (APE) Price](https://www.gemini.com/prices/apecoin) | ⬇️ 28.80% | $2.065
---
---

Crypto prices as of Friday, June 16, 2023, at 10:05am ET. Percentages reflect trends over the past seven days. C[heck out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![BTCBuzz bar new](//images.ctfassets.net/jg6lo9a2ukvr/1rWHPHvYasYs5iGkEwAdNj/cd2a9053ae449b5e2bd8de0d6cb7667b/BTCBuzz_bar_new.png)

![0616 Dial](//images.ctfassets.net/jg6lo9a2ukvr/1svmmCxpQPRZCdqXuifUVi/2158f9f68e69002140e40e74aa2d3adf/0616_Dial.png)

*[BitcoinBuzz](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator) data as of 5:15pm ET on June 15, 2023.*

Today, we’re thrilled to include the BitcoinBuzz Sentiment Indicator for the first time in our Weekly Market Update. BitcoinBuzz is a cutting-edge BTC indicator, with a score between 1-10, that offers a comprehensive view of price movements. By harnessing in-depth sentiment analysis, BitcoinBuzz combines news sentiment, on-chain BTC flows, Gemini BTC volumes, BTCUSD price momentum, and BTCUSD breadth.

[Read our introduction to the BitcoinBuzz Indicator here](https://www.gemini.com/blog/introducing-geminis-bitcoinbuzz-btc-sentiment-indicator). Check back every Friday for an updated score!



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)
### Takeaways 

- The U.S. Federal Reserve held its key interest rate steady at 5-5.25% at its June meeting, ending a run of 10 consecutive rate hikes. The move was supported by cooling inflation, which hit its lowest level in two years. 
- Crypto prices failed to rally following the Fed decision and dipped Wednesday night into Thursday morning as Tether (USDT) periodically de-pegged, spurred by imbalances in the Curve 3Pool liquidity pool. 
- Little-known crypto company Prometheum emerged onto the scene. Its co-founder testified in Congress that the SEC has provided clear rules for crypto, an opinion that contrasts starkly with the standard crypto industry stance. 
- The release of the Uniswap v4 draft buoyed UNI as the company prepared upgrades to its protocol. 

<details>signup link</details>

__Fed Pauses Interest Rate Hikes Amid Cooling Inflation__

The [U.S. Federal Reserve held the Fed Funds rate](https://www.nbcnews.com/business/economy/federal-reserve-interest-rate-decision-june-2023-pause-how-much-rcna88922), its key interest rate, steady at 5-5.25% on Wednesday, as expected. This is the first “no change” decision after 10 consecutive rate hikes of varying magnitudes. The Fed’s statement and press conference struck a hawkish tone, however, signaling the Fed is [prepared to continue raising rates](https://www.cnbc.com/2023/06/14/fed-rate-decision-june-2023.html) if inflation remains stubborn. 

The Fed dot plot [raised projections for interest rates to ~5.6%](https://www.cnbc.com/2023/06/14/the-fed-forecasts-two-more-hikes-this-year-taking-rates-as-high-as-5point6percent.html), indicating two potential further rate hikes by the end of the year. [Stocks initially fell](https://www.tradingview.com/symbols/SPX/) on the prospect of more rate increases later this year but staged a comeback to end slightly in the green at the end of the session on Wednesday.

A day prior to the Fed decision, U.S. consumer price index (CPI) data showed that [inflation had cooled to 4% in May](https://www.reuters.com/markets/us/us-consumer-prices-slow-may-core-inflation-sticky-2023-06-13/) compared to the same time last year, its lowest level in over two years. Slowing inflation [helped ease pressure](https://www.nbcnews.com/business/economy/federal-reserve-interest-rate-decision-june-2023-pause-how-much-rcna88922) on officials’ decision-making in the U.S. Federal Reserve's federal open market committee (FOMC) meeting that took place on Wednesday. 

__Crypto Prices Stumble as Stock Markets Add to Gains__

Crypto prices continued to decouple from the traditional equity markets this week. Month-to-date [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) and [ether (ETH)](https://www.gemini.com/prices/ether) are down ~7.8% and ~10%, respectively, while the [S&P 500](https://www.tradingview.com/symbols/SPX/) and [NASDAQ](https://www.tradingview.com/symbols/NASDAQ-NDX/) are trading up ~6.8% and ~12.8%, as the recent regulatory scrutiny in the U.S. has put pressure on crypto prices and has weighed down investor sentiment. 

Conversely, U.S. stock markets have [added to their recent gains](https://www.tradingview.com/symbols/SPX/), hitting 12-month highs. The [S&P 500](https://www.tradingview.com/symbols/SPX/) touched ~4,391 on Wednesday while the [NASDAQ](https://www.tradingview.com/symbols/NASDAQ-NDX/) closed at ~15,005, levels not seen since April 2022. Stocks continued to rally on Thursday.

Recent stock market gains have been buoyed by semiconductor and software industries in particular, with the [interest in artificial intelligence](https://www.bloomberg.com/news/articles/2023-06-08/ai-stocks-supercharge-a-tech-bull-market-and-maybe-a-bubble) continuing to grow. [Nvidia (NVDA)](https://www.tradingview.com/symbols/NASDAQ-NVDA/), the world’s largest GPU manufacturer, for example, has seen its stock price surge more than 180% this year. 

__Tether (USDT) Experiences Intermittent De-peg, Impacting Crypto Markets__

[Crypto prices](https://www.gemini.com/prices/bitcoin) abruptly fell late Wednesday, after largely trading sideways following the Fed decision to pause interest rate hikes. The sudden price drop [may have been sparked](https://www.coindesk.com/markets/2023/06/15/usdt-selling-on-curve-uniswap-spooks-traders-amid-bitcoin-drop/) by a liquidity pool imbalance on Curve, which was driven by a selloff of the world’s largest stablecoin, [Tether (USDT)](https://www.gemini.com/prices/tether). USDT eventually drifted temporarily from its 1:1 USD peg.

On Wednesday evening, the Curve 3Pool, [one of the most popular](https://www.theblock.co/post/234822/tether-depeg-curve-3pool) DeFi [liquidity pools](https://www.gemini.com/cryptopedia/what-is-a-liquidity-pool-crypto-market-liquidity) for stablecoin trading, became heavily imbalanced. The USDT balance in the pool increased to over 70%, indicating that traders were selling USDT for other stablecoins, and the [price of USDT de-pegged](https://cointelegraph.com/news/curve-pool-imbalance-usdt-depeg-concerns-tether-cto-calls-it-fud) to ~$0.996 at one point. 

__Little-Known Prometheum Emerges as a Regulated Crypto Company, Raising Eyebrows__

Following last week’s SEC lawsuits lodged against [some of the world’s largest crypto companies](https://www.forbes.com/sites/digital-assets/2023/06/08/sec-civil-suits-against-binance-and-coinbase-suggest-different-approach-to-each-exchange/?sh=ab3c4574193e) and a concerted call from the industry for more regulatory clarity in the U.S., [a peculiar story](https://cointelegraph.com/news/who-is-prometheum-what-testify-congress-about-crypto-sec) regarding little-known crypto company Prometheum emerged. 

Earlier this week, Prometheum co-founder [Aaron Kaplan testified](https://cointelegraph.com/news/us-lawmaker-invokes-sec-lawsuits-in-considering-crypto-regulatory-framework) before the U.S. House Committee on Financial Services to discuss regulatory clarity in crypto. [During his testimony](https://www.pionline.com/cryptocurrency/house-lawmakers-disagree-new-crypto-bill), Kaplan stated that “there is a compliant path forward for crypto in the United States that the SEC has clearly laid out.” 

These comments contrast with recent views expressed by the SEC’s latest targets, [Binance](https://www.prnewswire.com/news-releases/binance-statement-in-response-to-sec-complaint-301842628.html) and [Coinbase](https://decrypt.co/143612/coinbase-plans-to-fight-sec-lawsuit-carry-on-with-business-as-usual). [Kaplan added that](https://www.pionline.com/cryptocurrency/house-lawmakers-disagree-new-crypto-bill) “those who argue for new laws are simply not willing to comply with the existing applicable securities laws and regulation.” That Prometheum has largely flown under the radar thus far, despite being founded six years ago and gaining approval from the SEC and FINRA, has [raised plenty of questions](https://beincrypto.com/sec-prometheum-broker-approval-crackdown-crypto/).

__Positive Market Reaction to Uniswap v4 Release__

The market reacted positively to [Uniswap Labs’ newest protocol update](https://blog.uniswap.org/uniswap-v4): Uniswap v4, helping [UNI](https://www.gemini.com/prices/uniswap) avoid the larger DeFi price drops experienced by the majority of altcoins this week. 

Among the major updates in Uniswap v4 is the [introduction of “hooks,”](https://blog.uniswap.org/uniswap-v4) plugins that will allow developers to create custom liquidity pools. Developers would be able to add new features to pools including on-chain limit orders, dynamically adjusting fees and automatic deposits to lending protocols. There is no official release date for the v4 platform currently, with the code to receive further updates as the team gathers community feedback.

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

### Cryptoart, NFTs, and the Art Industry

Cryptoart is digital art that lives on the blockchain in the form of non-fungible tokens (NFTs). This fast-emerging sector is disrupting the art industry for artists, dealers, and investors alike — and creating a far more accessible, equitable, and inclusive art market. Today, we explore the origins of cryptoart and NFT art, as well as how artists may benefit from the proliferation of this new art medium. 

__From digital art to cryptoart__

Emerging around the 1970s, digital art has become one of the more popular subgenres of contemporary art. Digital art may refer to artworks created or enhanced with software, digitally rendered animations, or interactive art consumed through a digital device. There is also “generative” digital art, which artists produce mostly by using algorithms.

Some digital artists use blockchain technology itself as their medium — employing custom software and code, along with a slew of new [decentralized applications (dApps)](https://www.gemini.com/cryptopedia/decentralized-applications-defi-dapps) to create their work. Once it’s on the blockchain, digital art falls into the realm of cryptoart. So what is cryptoart exactly? As with all things crypto, the vocabulary and definitions surrounding this art movement are dynamic and iterative, but there is a baseline distinction: Cryptoart is art on the blockchain — natively published as an NFT.

These rare digital artworks — interchangeably termed crypto-collectibles, NFT art, nifties, or cryptoart — are represented by [unique and provably rare tokens](https://www.gemini.com/cryptopedia/nft-non-fungible-token-crypto-collectibles). 

__The rise of cryptoart and NFTs__

Before NFT art captured the zeitgeist, early projects like Monegraph in 2014 and Rare Pepe in 2016 allowed users to register collectibles on blockchain networks. In 2017, a new vehicle for digital art emerged with Ethereum’s introduction of the [ERC-721 standard](https://www.gemini.com/cryptopedia/glossary#erc-721-tokenization-standard), enabling the creation of NFTs and springboarding the cryptoart movement into existence. 2017 saw the rise of [CryptoPunks](https://www.gemini.com/cryptopedia/what-are-cryptopunks-market-buy-cryptopunk-price), [CryptoKitties](https://www.gemini.com/cryptopedia/cryptokitties-nft-crypto-ethereum-token), CurioCards, and Dada.nyc — paving the way for the NFT art movement.

__Blockchain enters the mainstream art market__

The development of cryptoart has not been limited to the fringes of the internet. In 2018, Christie’s New York became the first auction house to register a sale on a blockchain platform with its $318 million USD sale of the Barney A. Ebsworth collection. This collection featured artwork by landmark American artists Edward Hopper and Georgia O’Keeffe, among others. 

[Read more about fine art and blockchain here](https://www.gemini.com/cryptopedia/fine-art-on-the-blockchain-nft-crypto#section-high-art-embraces-blockchain-fine-art).

Mainstream acknowledgment of the [blockchain art sector](https://www.gemini.com/cryptopedia/fine-art-on-the-blockchain-nft-crypto) reached a tipping point in 2021 with the sale of digital artist Beeple’s “Everydays — The First 5000 Days.” An entirely digital crypto art piece, it sold for $69 million USD at Christie's. The sale made Beeple one of the wealthiest artists alive in the world today. 

Now, there are multitudes of NFT art marketplaces such as [Nifty Gateway](https://www.gemini.com/cryptopedia/nifty-gateway-nifty-marketplace-nifties-beeple-nft), OpenSea, [Rarible](https://www.gemini.com/cryptopedia/rarible-nft-art-marketplace-rari-coin), and KnownOrigin, each with unique value propositions. Fine-art specific NFT marketplaces include Maecenas, Masterworks, Artchain.world, Aditus, and Portion.

__How artists can benefit from NFT marketplaces__

The plethora of online NFT marketplaces is good news for artists and collectors, as these markets are typically more accessible, approachable, equitable, and inclusive than storefront galleries. 

The most important benefit for artists may be that they can get paid equitably for their work. In the traditional art model, an artist typically gets 50% of an artwork’s sale price and the gallery takes the other 50%. If the piece is resold, the artist receives no royalties. In the cryptoart world, however, an artist can earn 80% or more of the initial sale price, depending on the venue, and a standard of 10% or more of all secondary sales.

Further, these funds don’t need to be tracked down or negotiated. They are cryptographically secured and guaranteed by autonomous [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) on the blockchain. NFTs automatically authenticate the art and track its [provenance](https://www.gemini.com/cryptopedia/glossary#provenance) and value as it changes hands.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, June 16, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — today we explore crypto metaverses.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: What is a Crypto Metaverse?__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 1.20% | $26,648
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 1.86% | $1,848
---
[Somnium Space (CUBE) Price](https://www.gemini.com/prices/somnium-space) | ⬆️ 37.80% | $1.5344
---
[Rally (RLY) Price](https://www.gemini.com/prices/Rally) | ⬇️ 16.80% | $0.00984
---
[SuperRare (RARE) Price](https://www.gemini.com/prices/superrare) | ⬇️ 16.30% | $0.074
---
---

Crypto prices as of Friday, June 9, 2023, at 10am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- The SEC sued Binance and Coinbase this week, leveling a host of allegations against two of the world’s largest crypto trading platforms. 
- Both exchanges responded forcefully, with Coinbase criticizing the regulator for its “enforcement-only approach” and unwillingness to provide clear rules for crypto exchanges. Binance described the SEC’s actions as “misguided” and “unjustified,” adding that the “SEC abandoned and denied us due process.”
- Bitcoin (BTC) took a hit early in the week following the SEC actions but rebounded as the news settled, trading slightly below its $27k USD support level as of Friday morning.
- In the wider markets, U.S. stocks continued their push higher. Various Wall Street firms raised their year-end price targets, reflecting renewed optimism among investors.

### SEC Charges Binance and Coinbase

Early this week, the U.S. Securities and Exchange Commission (SEC) announced [enforcement actions](https://www.forbes.com/sites/digital-assets/2023/06/08/sec-civil-suits-against-binance-and-coinbase-suggest-different-approach-to-each-exchange/?sh=ab3c4574193e) against two of the world’s largest crypto trading platforms, Binance and Coinbase. [Binance came first](https://www.sec.gov/news/press-release/2023-101) on Monday, [followed quickly](https://www.sec.gov/news/press-release/2023-102) by Coinbase on Tuesday. 

[The SEC alleged](https://www.sec.gov/news/press-release/2023-101) that Binance and affiliated entities, including the entity that operates Binance U.S., have been operating as unregistered securities exchanges, broker-dealers, and clearing agencies, and that they have been selling unregistered securities. The charges further alleged that the Binance group had misrepresented trading controls and oversight of Binance U.S, claiming that it had commingled billions in investor assets. Late Tuesday, the [SEC asked a federal court judge](https://www.cnbc.com/2023/06/06/sec-asks-for-emergency-order-to-freeze-binance-us-assets-anywhere-in-the-world.html) to freeze Binance.US’s assets.

The next day, [the SEC charged Coinbase](https://www.sec.gov/news/press-release/2023-102), alleging that it was operating an unregistered securities exchange, broker-dealer, and clearing agency, and sold unregistered securities. The SEC also charged the largest U.S. crypto exchange with [failing to register the offer and sale](https://www.cnbc.com/2023/06/06/sec-sues-coinbase-over-exchange-and-staking-programs-stock-drops-14percent.html) of its crypto asset staking-as-a-service product. Coinbase stock (COIN) [dropped nearly 25%](https://www.tradingview.com/symbols/NASDAQ-COIN/) this week as a result of these lawsuits, before paring back some of its losses to end the week.

### Binance and Coinbase Respond Forcefully to the SEC

Following the two SEC actions announced earlier in the week, both Binance and Coinbase delivered pointed rebukes. 

During a planned Congressional hearing on Tuesday which coincided with the SEC suit, Coinbase Chief Legal Officer Paul Grewal argued that the SEC’s “[enforcement-only approach](https://decrypt.co/143612/coinbase-plans-to-fight-sec-lawsuit-carry-on-with-business-as-usual)” is damaging for the development of crypto in the United States. Coinbase [also released a video](https://twitter.com/coinbase/status/1666135834062467083?s=20) criticizing the SEC for a lack of guidance and its unwillingness to provide clear rules on how to operate legally in the crypto space. 

[Binance published a response](https://www.prnewswire.com/news-releases/binance-statement-in-response-to-sec-complaint-301842628.html) to the SEC complaint describing the SEC’s actions as “misguided” and “unjustified” and said they would vigorously defend their platform. The world's largest exchange added that despite “efforts at productive engagement, the SEC abandoned and denied us due process, and instead unilaterally chose to litigate.”

### Bitcoin Price Takes a Hit Following SEC Suits

Prior to the charges being announced against Binance and Coinbase, [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) was trading around the $27k USD support level we have become familiar with over the past few weeks, but dropped sharply lower to ~$25.5k USD once the Binance news hit. 

The Coinbase lawsuit briefly pushed prices lower on Tuesday before [BTC retraced](https://www.gemini.com/prices/bitcoin) back to ~$27k USD by late Tuesday. [Prices](https://www.gemini.com/prices/bitcoin) have since drifted lower again to ~$26.5k USD as the market continues to digest all aspects of the charges and the potential impact this could have on the crypto industry as a whole.

As part of the Binance and Coinbase lawsuits, the SEC [included a list](https://cointelegraph.com/news/sec-labels-61-cryptocurrencies-securities-after-binance-suit) of crypto tokens traded on the platforms that they view as unregistered securities. Many of the tokens mentioned experienced some of the biggest declines this week, with [Solana (SOL)](https://www.gemini.com/prices/solana) ~9%, [Cardano (ADA)](https://coinmarketcap.com/currencies/cardano/) ~11.5%, [Polygon (MATIC)](https://www.gemini.com/prices/polygon) ~13.5%, and [Binance Coin (BNB)](https://coinmarketcap.com/currencies/bnb/) ~13.5% all facing drops as of early Friday.

### U.S. Stock Markets Show Continued Strength

U.S. stock markets continued their push higher this week, with the [S&P 500](https://www.tradingview.com/symbols/SPX/?exchange=SP) up over 20% since its October 2022 lows. Market participants have [renewed optimism](https://www.reuters.com/markets/us/fading-risks-fear-missing-out-may-fuel-us-stocks-after-near-20-rally-2023-06-08/), as concerns over the U.S. debt ceiling were [erased last week](https://apnews.com/article/debt-limit-biden-mccarthy-senate-house-default-b8c3566b0c9cb168d9706aa256e327f7). The economy is [showing signs of strength](https://www.reuters.com/markets/us/fading-risks-fear-missing-out-may-fuel-us-stocks-after-near-20-rally-2023-06-08/) and expectations are that the U.S. Federal Reserve is [near the end](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) of its interest rate hiking cycle, further supporting the optimism. 

A number of Wall Street firms also raised their year-end price targets during the week. Bank of Montreal (BMO) Capital Markets [raised its S&P 500 price target](https://www.cnbc.com/video/2023/06/07/bmos-brian-belski-explains-why-his-firm-raised-sp-500-price-target-to-4550.html) to 4,550 from 4,300, while Evercore ISI [hiked its target](https://www.investing.com/news/stock-market-news/evercore-isi-says-sp-500-could-hit-4450-by-july-4-432SI-3098168) to 4,450 from 4,150. 

Attention now turns to the upcoming Fed meeting set to take place next week. The [May jobs report](https://finance.yahoo.com/news/stock-market-news-live-updates-june-2-2023-114824059.html) released last Friday reinforced expectations that the Fed will [announce an interest rate pause](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html), but the [upcoming consumer price index (CPI)](https://www.reuters.com/markets/us/futures-slip-mixed-data-clouds-fed-policy-outlook-2023-06-06/) report to be [released Tuesday](https://www.bls.gov/cpi/) could push some policymakers to favor another rate hike should the numbers come in hotter than expected.

-From the Gemini Trading Desk

<details>signup link</details>



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## Exploring Crypto Metaverses

Apple unveiled its Vision Pro headset this week to much fanfare as it [launched a new product](https://www.nbcnews.com/nightly-news/video/apple-unveils-new-mixed-reality-headset-its-first-new-product-in-years-180350021706) for the first time in years. It is the latest installment of virtual and augmented reality headsets, including Google Glass released a decade ago and other iterations of similar headsets over the past ten years. 

The excitement around these products can be tied to the rapid development of and interest in immersive worlds as we spend more time online. Crypto metaverses, which we discuss this week, are a possible application of virtual and augmented reality as we discover new ways of interacting and transacting online. 

### What is a metaverse?

A metaverse is a shared, immersive virtual world in which players, usually represented by avatars, can interact with each other, construct experiences, and create in-world objects and landscapes. Metaverses in the crypto space typically have their own intrinsic economies and currencies, with which users can buy, sell, and trade digital real estate, items, avatar accessories, and more. Metaverses can be experienced via a computer, virtual reality (VR) headset, or smartphone.

### How does crypto come into the mix?

Specifically, a crypto metaverse is a metaverse that incorporates [blockchain](https://www.gemini.com/cryptopedia/blockchain-technology-explained) into its underlying technology and crypto assets, such as metaverse tokens, into its economy. Examples of crypto metaverses and protocols that incorporate metaverse elements include [Decentraland](https://www.gemini.com/cryptopedia/decentraland-defi-ethereum-based), Cryptovoxels, Alien Worlds, [Axie Infinity](https://www.gemini.com/cryptopedia/axie-infinity-game-axie-marketplace-axie-nft), and [The Sandbox](https://www.gemini.com/cryptopedia/the-sandbox-sand-crypto-nft-virtual-world). 

While metaverse-like environments have existed in massive-multiplayer online games for some time now, the incorporation of blockchain, crypto, and VR into the sector is not just drastically altering who can participate and what they can do, but also demonstrating the real-world market value of assets, interactions, and experiences earned in the digital realms of blockchain games. 

Metaverse crypto assets and items — such as digital land and objects, for example — are typically represented by different types of metaverse tokens. Their ownership is recorded on the blockchain and can even be exchanged for digital assets like [bitcoin (BTC)](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis) and [ether (ETH)](https://www.gemini.com/cryptopedia/ethereum-blockchain-eth-fees-ether-transaction) on a number of [decentralized exchanges (DEXs)](https://www.gemini.com/cryptopedia/decentralized-exchange-crypto-dex).

### Key features of crypto metaverses

Designers of crypto metaverses have generally sought to distinguish their worlds from earlier iterations of metaverses in several key ways:

- __Decentralization:__ While early virtual worlds were owned and controlled by companies, crypto metaverses are typically decentralized, with some or all components of metaverse games built on blockchain technology. This means that blockchain metaverses themselves tend to diverge from the mainstream business structures and value extraction models of today’s gaming industry. The unique structure of blockchain games can open up more equitable engagement opportunities for participants. It also means that ownership of the metaverse itself is shared amongst its participants. Even if the original creators of the metaverse blockchain were to walk away, the game itself could continue to exist.
- __User governance:__ Crypto metaverses like Decentraland make use of decentralized autonomous organizations (DAOs) and governance tokens to put their users in control of the game’s future, allowing them to drive changes and updates through voting. In this way, metaverses can be more than just crypto games — they can grow into entire societies with economies and democratic leadership.
- __Provable provenance:__ Virtual world items in crypto metaverses take the form of crypto tokens, such as non-fungible tokens (NFTs). Achievements and acquisitions in gaming environments can represent value to gamers. NFTs update the standards of in-game items, adding transparency and access to asset markets. Because every NFT is unique, metaverse tokens and items can be coded to easily help prove the provenance of in-game user-generated content as well as NFT gaming assets.
- __Real-world economic value:__ Since crypto metaverses use crypto tokens and blockchain infrastructure, their economies are directly connected to the wider crypto economy. This allows holders of metaverse tokens, avatar skins, and digital real estate to trade them on DEXs and NFT marketplaces, potentially bringing real-world value to their virtual world investments.

The future of metaverses leads to many possibilities as we imagine new ways to interact online. We invite you to read more [about crypto metaverses](https://www.gemini.com/cryptopedia/what-is-metaverse-crypto-nft-game-blockchain), explore [popular metaverse platforms](https://www.gemini.com/cryptopedia/crypto-metaverse-examples-what-is-the-metaverse-games), and discover [more about this topic](https://www.gemini.com/cryptopedia/search?query=Metaverse).

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, June 9, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss public and private keys.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: Public and Private Keys__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 1.14% | $27,072
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 3.27% | $1,890
---
[Rally (RLY)](https://www.gemini.com/prices/Rally) | ⬆️ 48.60% | $0.01238
---
[Alethea (ALI)](https://www.gemini.com/prices/alethea-artificial-liquid-intelligence-token) | ⬆️ 33.90% | $0.02899
---
[Samoyedcoin (SAMO) Price](https://www.gemini.com/prices/samoyedcoin) | ⬇️ 31.10% | $0.00398
---
---

### Crypto prices as of Friday, June 2, 2023, at noon ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- __Debt Ceiling:__ An agreement to raise the U.S. debt ceiling passed the U.S. House and Senate this week. President Biden is expected to sign the bill into law, ending the impasse that has weighed on investors over the past month.
- __Interest Rates:__ Further interest rate hike expectations have shifted once again as a Fed governor suggested more hikes could be on the horizon. Nevertheless, investors expect the Fed to keep rates steady at its next meeting in two weeks.
- __Hong Kong:__ Hong Kong announced it would begin accepting applications for crypto exchanges and trading platforms for retail customers, ending restrictions in place since 2018.
- __BTC and ETH:__ Bitcoin (BTC) and ether (ETH) prices continued to trade within their recent ranges after seeing a bump following positive news out of the debt ceiling negotiations. 
- __Optimism and Multichain:__ Optimism (OP) token prices notably slid this week after a token unlock, and Multichain (MULTI)’s issues persisted with the company tweeting that employees were unable to contact their CEO. 

__U.S. Debt Ceiling Agreement Heads to President Biden’s Desk__

The U.S. debt ceiling debate, which has been [clouding markets](https://www.tradingview.com/symbols/SPX/?exchange=SP) for the past month, appears to be drawing to a close. Reports emerged over the weekend [that a deal had been reached](https://www.reuters.com/world/us/us-debt-ceiling-negotiations-push-towards-critical-default-deadline-2023-05-27/) between the Biden Administration and Congressional Republicans, which helped push equities higher as the markets opened again on Tuesday following the long Memorial Day weekend. 

By Thursday evening, the U.S. House and Senate approved a bill that would [raise the debt ceiling](https://apnews.com/article/debt-limit-biden-mccarthy-senate-house-default-b8c3566b0c9cb168d9706aa256e327f7) for more than two years. The bill now moves to President Biden’s desk for his signature and will allow the U.S. Treasury to continue servicing its debts. 

__Interest Rate Hike Expectations Creep Up Again__

With the next meeting of the U.S. Federal Reserve fast approaching, the market expectations around rate hikes [fluctuated throughout the week](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html). Current expectations are that the Fed will pause interest rate hikes at the June meeting, but future [rate hikes could resume](https://www.bloomberg.com/news/articles/2023-05-31/fed-s-jefferson-signals-pause-on-way-but-more-hikes-could-follow) later this year. 

Earlier in the week, odds briefly rose for another 25 bps hike coming on June 14th, [the next Federal Open Market Committee (FOMC) meeting](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm). 

However, comments on Wednesday from Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker [suggested a rate pause](https://www.bloomberg.com/news/articles/2023-05-31/fed-s-jefferson-signals-pause-on-way-but-more-hikes-could-follow) at the next FOMC meeting, resulting in [equities climbing slightly higher](https://www.tradingview.com/symbols/SPX/?exchange=SP) on Thursday morning. Jefferson did note that a pause at the next meeting [does not mean that we have reached the peak](https://www.bloomberg.com/news/articles/2023-05-31/fed-s-jefferson-signals-pause-on-way-but-more-hikes-could-follow) rate for this cycle. 

A very strong [jobs report released Friday](https://finance.yahoo.com/news/stock-market-news-live-updates-june-2-2023-114824059.html), and consumer price index (CPI) data on June 13th could play an important role in future rate decisions.

__BTC and ETH Fail to Muster Momentum__

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) price rallied from the bottom of its short-term range to over $28k USD at the start of the week on positive [news relating to the debt ceiling](https://www.proactiveinvestors.com/companies/news/1016361/bitcoin-and-ethereum-rally-as-us-debt-ceiling-saga-edges-to-a-close-1016361.html) deal. The rally was short-lived as BTC slid lower throughout the week back to the $27k USD level, which has acted as a key level of support over the past few months. 

[Ether (ETH)](https://www.gemini.com/prices/ether) has managed to push higher from its $1,800 USD support level, reaching a high of above $1,900 before consolidating around the $1,860 USD level. Similar to previous weeks, ETH has shown greater strength in comparison to BTC with the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/) now trading near 0.070, up from 0.064 a month earlier. 

Liquidity and activity on centralized exchanges continue to fall as the month of May brought the [lowest monthly spot exchange volumes](https://www.theblock.co/data/crypto-markets/spot/total-exchange-volume-daily) in the past 12 months. The total volume across exchanges has fallen from [~$1.4t USD in May last year to ~$440b USD this May](https://www.theblock.co/data/crypto-markets/spot/cryptocurrency-exchange-volume-monthly).

__Hong Kong Accepting Applications for Retail Crypto Trading__

On Thursday, Hong Kong announced it would accept [applications for crypto exchanges](https://asia.nikkei.com/Spotlight/Cryptocurrencies/Hong-Kong-opens-crypto-exchange-licensing-ahead-of-retail-trading) and trading platforms for retail customers, curbing restrictions in place since 2018. Since 2018, only institutional investors and other professionals have been permitted to trade crypto. The regulations could allow retail trading as soon as the second half of this year. 

Some observers have pointed to the relaxing of Hong Kong's regulations as a potential precursor to a [more crypto-friendly regulatory framework](https://decrypt.co/142032/new-crypto-rules-suggest-hong-kong-is-testing-ground-china-say-experts) in mainland China, which would open up access to crypto for the world’s second largest economy. 

__Optimism (OP) Slides Following Token Unlock__

Optimism (OP) has seen a notable price decline this week, [sliding ~12%](https://coinmarketcap.com/currencies/optimism-ethereum/). The Ethereum scaling protocol executed [a planned token unlock](https://cointelegraph.com/news/optimism-unlock-millions-op-token-may-price-pressure) on Wednesday, which resulted in around [386 million OP tokens being released](https://www.newsbtc.com/analysis/optimism/optimism-crashes-33-following-token-unlocks-why-there-could-be-more-pain-to-come/). 

This represents the first unlock for core contributors and investors and is a [relatively large proportion of the total supply](https://www.newsbtc.com/analysis/optimism/optimism-crashes-33-following-token-unlocks-why-there-could-be-more-pain-to-come/) at 9%, worth ~$550m USD at current prices. Some investors may have taken profit given the price appreciation of OP since its launch, driven higher earlier this year by the announcement that Coinbase [will use Optimism’s technology](https://www.coindesk.com/markets/2023/02/24/optimism-ecosystem-coins-surge-as-coinbase-unveils-ethereum-layer-2-platform/).

OP price is [currently trading at ~$1.43 USD](https://coinmarketcap.com/currencies/optimism-ethereum/), down over 50% from its peak back in February when it traded ~$3.28 USD. In other Optimism-related news, the protocol is scheduled to complete its Bedrock [upgrade on June 6](https://community.optimism.io/docs/developers/bedrock/explainer/), offering reduced transaction fees, greater network security, and better compatibility with Ethereum.

__Multichain’s Issues Persist__

Last week saw cross-chain protocol Multichain (MULTI) encounter a number of issues including [backend upgrade problems](https://cointelegraph.com/news/multichain-token-plunges-30-on-backend-upgrade-delay) and unavailable cross-chain routes. 

The problems for Multichain have persisted this week with the team tweeting that they had experienced more issues and are [unable to contact their CEO Zhaojun](https://twitter.com/MultichainOrg/status/1663941611380965376). This has caused major problems as team members appear to not have the required permissions or ability to access the necessary servers for maintenance, resulting in some cross-chain services being suspended. The price of [MULTI](https://coinmarketcap.com/currencies/multichain/) is currently down ~50% over the last 14 days.

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## Public and Private Keys

Public and private keys are integral parts of Bitcoin and play an important role in the decentralized nature of cryptocurrencies. In short, public and private keys allow you to send and receive cryptocurrency without requiring a third party to verify the transactions. 

These keys are a part of the [public-key cryptography (PKC) framework](https://www.gemini.com/cryptopedia/search?query=Public-Key%20Cryptography%20(PKC)). You can use these keys to send your cryptocurrency to anyone, anywhere, at any time. The public and private keys fit together as a key pair. You may share your public keys in order to receive transactions, but your private keys must be kept secret. If anyone has access to the private keys, they will also have access to any cryptocurrency associated with those keys.

[Dive deeper into public and private keys here](https://www.gemini.com/cryptopedia/public-private-keys-encryption-faqs). 

__What Is a Public Key?__

A [public key](https://www.gemini.com/cryptopedia/glossary#public-key) allows you to receive cryptocurrency transactions. It’s a cryptographic code that’s paired to a [private key](https://www.gemini.com/cryptopedia/glossary#private-key). While anyone can send transactions to the public key, you need the private key to “unlock” them and prove that you are the owner of the cryptocurrency received in the transaction. The public key that can receive transactions is usually an [address](https://www.gemini.com/cryptopedia/glossary#public-address), which is simply a shortened form of your public key.

Therefore, you can freely share your public key without worry. You may have seen donation pages for content-creators or charities with the public keys for their crypto addresses online. While anyone can donate, you’d need the private key to unlock and access the donated funds.

__What Is a Private Key?__

Here is one crucial piece of advice: Never share your private key with anyone. A private key gives you the ability to prove ownership or spend the funds associated with your public address. A private key can take many forms, including:

- 256 character long binary code
- 64 digit hexadecimal code
- [QR code](https://www.gemini.com/cryptopedia/glossary#quick-response-code-qr-code)
- [Mnemonic phrase](https://www.gemini.com/cryptopedia/search?query=Recovery%20Phrase%20(Mnemonic%20Phrase))

Regardless of its form, a private key is an astronomically large number, and it’s large for a good reason. While you can generate a public key with a private key, doing the opposite is practically impossible because of the one-way “trapdoor” function. You can have any number of public keys connected to a private key.

[Learn more about public and private keys and signing blockchain transactions here](https://www.gemini.com/cryptopedia/public-private-keys-cryptography).

__Public and Private Keys Control Your Crypto__

How [public and private keys work](https://www.gemini.com/cryptopedia/public-private-keys-encryption-faqs) together is fundamental to understanding how cryptocurrency transactions function. When you say you have cryptocurrency, what you’re really saying is you have a private key that proves ownership of that cryptocurrency. Since it’s stored on the blockchain, anyone can verify you as the owner with your public key.

The choice of “holding your own keys” or trusting a custodian depends on your philosophy, risk-tolerance, and a host of other factors. If you hold your own private keys, consider modern [HD wallets](https://www.gemini.com/cryptopedia/hd-crypto-wallets-hierachichal-deterministic), which can do a great job of managing your private keys, and remember to never share them. If you choose a custodial solution like an exchange, make sure you choose a trusted, reputable company that places a high emphasis on security and regulation.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, June 2, 2023

We’re thrilled to announce that Gemini will soon begin the process of acquiring a crypto license to serve customers based in the United Arab Emirates (UAE). 

As a forward-thinking, global financial hub, the UAE is continuing its tradition of leadership by establishing itself as a fast-emerging hub for crypto. By applying for a license, we will be taking another step towards making Gemini a truly global company and advancing our mission to unlock the next era of financial, personal, and creative freedom for all.

This week, as the second leg of Gemini’s global odyssey tour, we have met with stakeholders throughout the region to learn more about local regulatory requirements and the needs of UAE crypto investors so that we can better serve this rapidly growing and vibrant crypto community. 

### Crypto Enthusiasm in the UAE

As part of [Gemini’s 2022 Global State of Crypto Report](https://www.gemini.com/gemini-2022-state-of-crypto-global.pdf), we took a look at adoption of crypto globally across 20 countries. We found that those in the UAE were rapidly acquiring crypto and putting it to use making in-person purchases. We also found high intent to purchase crypto among those who were not yet owners: 

- More than 35% of those surveyed in the UAE had purchased crypto, compared to only 20% of those in the US.
- Nearly 32% of non-owners in the UAE said they are likely to purchase crypto in the next year.
- 33% of those in the UAE who own some crypto use it to make in-person
purchases at brick-and-mortar retailers, compared to just 19% of owners globally.
![Blog state of crypto 2023](//images.ctfassets.net/jg6lo9a2ukvr/3hqBinRN4MQPzvsg917abW/d5e2892a54ac3f59ba22a77074a95954/Blog_state_of_crypto_2023.png)
### Better Serving the UAE

These findings, coupled with our team’s enthusiastic conversations with regulatory stakeholders, startups, and other ecosystem participants this week, have further cemented our interest in investing in the UAE and becoming a part of its crypto community. 

Our application is our first step towards providing customers in the UAE and beyond with a safe, secure, and easy-to-use platform to engage with crypto. Amazing awaits.

Onward and Upward,  
Team Gemini

Gemini Announces Plans for UAE Crypto License

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss gas fees on Ethereum.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Topic of the Week: Gas Fees on Ethereum__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 0.51% | $26,764
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 0.81% | $1,831
---
[Samoyedcoin (SAMO) Price](https://www.gemini.com/prices/samoyedcoin) | ⬆️ 77.10% | $0.005679
---
[Render (RNDR) Price](https://www.gemini.com/prices/render-token) | ⬆️ 19.70% | $2.842
---
[Numeraire (NMR) Price](https://www.gemini.com/prices/numeraire) | ⬆️ 14.60% | $16.51
---
---

### Crypto prices as of Friday, May 26, 2023, at noon ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- Ongoing U.S. debt ceiling negotiations have put investors on edge as markets brace for a potential default. Fitch put the U.S.’ AAA credit rating on negative watch and stocks moved lower.
- Bitcoin (BTC)'s and ether (ETH)'s performances have been lackluster as they trade near the bottom of their recent range, with ETH outperforming BTC as the ETHBTC ratio sits above the 0.068 level. 
- Nvidia, the world’s largest GPU manufacturer, saw its stock price surge over 25% after beating earnings and raising Q2 revenue guidance an astonishing 50% higher than Wall Street estimates, citing demand from AI customers. Other semiconductor companies and AI-focused crypto protocols rallied in sympathy. 
- Hong Kong’s securities and futures regulator said it plans to allow retail traders to invest in crypto as soon as June 1, under a set of formalized rules. Under the rules, stablecoins would not be permitted for trading until further regulations are put in place. 

### Debt Ceiling Impasse Clouds Investor Outlook Across Markets

The U.S. debt ceiling standoff continued this week, as the Treasury department once again warned that the federal government [could breach the debt ceiling](https://www.nbcnews.com/politics/congress/us-still-risk-breaching-debt-ceiling-june-1-treasury-rcna85637) as early as June 1st. Any agreement [could take days to pass through Congress](https://www.cnbc.com/2023/05/22/us-treasury-yields-investors-weigh-debt-ceiling-talks.html), and the lack of progress has started to weigh on investors. 

Until earlier this week, Wall Street remained optimistic about a deal being reached, but [signs of concern are showing](https://www.reuters.com/markets/us/futures-dip-debt-ceiling-talks-drag-2023-05-24/) as U.S. stock markets closed lower on Wednesday. As of Friday morning, reports said that negotiators [were closing in on a deal](https://www.nbcnews.com/politics/congress/live-blog/debt-ceiling-live-updates-rcna86159), but were “not there yet.” Ratings agency Fitch also put the United States' AAA rating [on negative watch](https://www.reuters.com/markets/us/fitch-puts-us-negative-credit-watch-2023-05-24/), further highlighting the increased risks should the debt ceiling not be raised in time.

The U.S debt ceiling concerns appear to have affected momentum [in the crypto markets too](https://www.cnbc.com/2023/05/24/bitcoin-and-ether-slide-as-debt-ceiling-negotiations-weigh-on-investors.html), as token prices dropped lower across the board on Wednesday, with prices rebounding slightly by Friday morning. After struggling to make a decisive break above $27k USD last week, [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) had another unsuccessful attempt at remaining above that level this week before seeing a sudden drop to around $26k USD. 

[Ether (ETH) prices](https://www.gemini.com/prices/ether) held up slightly better throughout the week, rising above the 0.068 level on the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/), although ETH price did drop below the $1,800 USD level which has provided good support since the start of April, before moving above that level once again on Friday.

### AI Boom Bolsters Nvidia Q2 Revenue, and Boosts AI-related Cryptos

On Wednesday, Nvidia reported second-quarter revenue forecasts that were [50% higher than Wall Street estimates](https://www.cnbc.com/2023/05/24/nvidia-nvda-earnings-report-q1-2024.html). The graphics processing unit (GPU) manufacturer cited the increasing [demand for its artificial intelligence chips](https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2024) as a leading catalyst, with the company planning to boost its supply as a result. Nvidia (NVDA) shares [surged almost 30%](https://www.tradingview.com/chart/?symbol=NASDAQ%3ANVDA) after hours following the announcement to reach a new all-time high. [NVDA](https://www.tradingview.com/chart/?symbol=NASDAQ%3ANVDA) has gained ~170% since the start of the year and [is the top performer](https://finance.yahoo.com/video/semiconductors-nvidia-best-performing-p-143942418.html) in the S&P 500 year-to-date. 

With the AI sector in focus as a next major growth driver, a number of AI-related crypto protocols have also seen outsized returns this week. [Render (RNDR)](https://www.gemini.com/prices/render-token), a provider of decentralized GPU rendering, added another 18%+ to its token price over the past seven days. The increased demand and supply shortage in GPUs has helped to position [RNDR](https://www.gemini.com/prices/render-token) as one of the best performers of the year so far, trading up over 550%.

### Hong Kong to Allow Retail Crypto Trading

On Tuesday, Hong Kong's Securities and Futures Commission (SFC) [announced](https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR53) finalized rules allowing retail traders [to buy and sell crypto](https://www.reuters.com/technology/hong-kong-regulator-issue-crypto-licences-with-retail-investor-guardrails-2023-05-24/) from June 1. Licensed exchanges will be permitted to sell cryptocurrencies which meet certain [capitalisation](https://www.coindesk.com/policy/2023/05/23/hong-kong-securities-regulator-to-accept-license-applications-for-crypto-exchanges-starting-june-1/) and liquidity requirements, which [would likely include](https://decrypt.co/142032/new-crypto-rules-suggest-hong-kong-is-testing-ground-china-say-experts) bitcoin (BTC) and ether (ETH). 

As part of the rules, the SFC has proposed that [stablecoins not be offered for retail trading](https://cryptoslate.com/hong-kong-will-not-allow-retail-customers-to-trade-stablecoins/) until planned future regulations for the asset class are brought in. Hong Kong appears to be taking advantage of [prohibitions on crypto activities](https://cointelegraph.com/news/us-crackdown-will-push-crypto-s-center-of-gravity-to-hong-kong-kaiko-ceo) in other jurisdictions as they push ahead with developing a crypto hub.

Some observers have speculated that the framework Hong Kong has set forth for investing in crypto will be a “[testing ground](https://decrypt.co/142032/new-crypto-rules-suggest-hong-kong-is-testing-ground-china-say-experts)” for China to lift its ban on crypto trading. This would reopen investor access for digital assets for the world’s second largest economy after the Chinese government banned trading and mining activities in 2021. 

### Multichain Experiences Upgrade Delays as MULTI Price Plummets

Users of the cross-chain protocol Multichain experienced long delays in receiving their funds this week following a [backend upgrade which took “longer than expected.”](https://cointelegraph.com/news/multichain-token-plunges-30-on-backend-upgrade-delay) However, more confusion arose on Wednesday when the team tweeted that some of its cross-chain routes were [unavailable due to “force majeure.”](https://twitter.com/multichainorg/status/1661443109019062272) [MULTI](https://coinmarketcap.com/currencies/multichain/), the protocol's native token, has dropped over 40% this week as a result.

-From the Gemini Trading Desk



![CryptoNews (1)](//images.ctfassets.net/jg6lo9a2ukvr/7lhLoMRA8UoD248pBNCy7d/aaea9f345ffc5a5c21dc602eea9b354f/CryptoNews__1_.png)

## Gas on the Ethereum network

To [send and receive crypto](https://www.gemini.com/cryptopedia/send-and-receive-crypto-bitcoin-transfer) on most blockchains, you need to pay a [transaction fee](https://www.gemini.com/cryptopedia/glossary#transaction-fee). These fees are often thought of as the “fuel” that powers blockchains. This fee can vary widely (from less than $0.0001 USD to over $100 USD) and depends on the blockchain you’re using as well as the current demand for [block space](https://www.gemini.com/cryptopedia/glossary#block-size). On [Ethereum](https://www.gemini.com/cryptopedia/ethereum-blockchain-smart-contracts-dapps), the transaction fee required to use the network is referred to as the [gas fee](https://www.gemini.com/cryptopedia/glossary#gas-fees) (or gas price), and is paid in [ether (ETH)](https://www.gemini.com/cryptopedia/ethereum-blockchain-eth-fees-ether-transaction), or gwei. 

Practically all actions on the Ethereum blockchain require gas to be executed. Most gas costs are priced in gwei, a denomination of ETH. One ETH equals 1 billion gwei (similar to how there are 100 million [satoshis](https://www.gemini.com/cryptopedia/search?query=Satoshis) per 1 BTC). 

Gas fees on Ethereum have varied widely over the years due to network activity, with [averages](https://etherscan.io/chart/gasprice) going as high as between $50 USD and $70 USD per transaction in 2021. More recently, the excitement around the [PEPE](https://www.gemini.com/prices/pepe) memecoin [pushed gas prices](https://finance.yahoo.com/news/pepe-meme-coin-hysteria-pushes-093237931.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAHf--Zu0sJSIhS0CCNCBmPG5IEFfV4xRwYE42lNOH8rqaCnWAr8j57txYRoYBgZvRg9klcHnh9iGxWj_uvPEpBeNWw7tIYl1co2_LV1fc21d6XD1OAB4CQ3CPjbIntfZgdToAOhdE-WbSwLIix-6Iq1WMKmjihwBeE6snNXRUAZW) on Ethereum to a one-year high above $15 USD in early May. 

[Learn more about gas fees on Ethereum here](https://ethereum.org/en/developers/docs/gas/). 

__What can you pay for with gas?__ Gas is used to pay for computational resources on the Ethereum blockchain. For example, gas is required to send ETH, to mint and buy [non-fungible tokens (NFT](https://www.gemini.com/cryptopedia/how-to-use-nfts-non-fungible-tokens-crypto)), and to use Ethereum-based [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) and [decentralized applications (dApps)](https://www.gemini.com/cryptopedia/dapps-ethereum-decentralized-application).The amount of gas required to execute these functions is therefore of interest to many network users. 

These gas fees vary depending on use case. Sending an ETH transaction is typically cheaper, while more complicated smart contract and dApp executions tend to be more costly. The price itself is defined by supply and demand for transactional capacity on the network at the time of execution. The way gas fees are calculated have changed over time, and we invite you to [explore the Ethereum website](https://ethereum.org/en/developers/docs/gas/) for more details.

__Who receives gas fees?__ Gas fees are paid to those who secure the Ethereum network and process transactions, which are now those who stake ETH on the network, following last year’s “Merge” which moved Ethereum from a proof-of-work to a proof-of-stake consensus mechanism. Gas fees also serve as an incentive mechanism for stakers to continue securing the network and validating transactions.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, May 26, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss perpetual futures contracts in crypto.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: Perpetual Futures Contracts__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 2.13% | $26,896
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 2.94% | $1,816
---
[Render (RNDR) Price](https://www.gemini.com/prices/render-token) | ⬆️ 39.20% | $2.384
---
[Pepe (PEPE) Price](https://www.gemini.com/prices/pepe) | ⬆️ 28.00% | $0.000001513
---
[Mask (MASK) Price](https://www.gemini.com/prices/mask) | ⬆️ 26.10% | $4.531
---
---

### Crypto prices as of Friday, May 19, 2023, at 11:55am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- U.S. stocks gained this week as optimism grew around a potential deal to raise the debt ceiling. Without a deal, the U.S could default on its $31.4 trillion USD debt as soon as June 1. On Friday, however, it was reported that debt ceiling talks had broken down.
- Bitcoin 2023, the world's premier Bitcoin conference, is taking place this week as BTC has been trying to nudge higher. After hitting recent lows, both BTC and ETH have struggled to regain momentum. 
- GALA performed well this week following its v2 upgrade, and LTC rose with its next halving event expected in August. 
- Tether, the largest stablecoin issuer, announced that it would begin investing up to 15% of its net profit into BTC, in a bid to diversify its reserve backing.

### U.S. Markets Rise on Debt Ceiling Deal Optimism

U.S. stock market indices rose this week on the back of increased optimism that President Joe Biden and congressional leaders [have made progress](https://www.nbcnews.com/politics/white-house/biden-sounds-optimistic-tone-reaching-debt-ceiling-deal-republicans-rcna84871) and are moving closer to securing a deal to raise the U.S debt ceiling. House Speaker Kevin McCarthy suggested that a deal could be agreed to [before the end of the week](https://apnews.com/article/biden-mccarthy-debt-limit-default-ce36241e652f7eb022009152001c254e), with Biden [cutting short a trip to Asia](https://www.nbcnews.com/politics/white-house/biden-cut-asia-trip-short-return-negotiate-debt-ceiling-rcna84538) in an effort to prioritize the negotiations. On Friday, however, it was reported that debt ceiling [talks had broken down](https://www.cnbc.com/2023/05/19/debt-ceiling-republicans-pause-negotiations-with-white-house.html).

Without a deal, the U.S could enter a default on its $31.4 trillion USD debt [as soon as June 1](https://www.nbcnews.com/politics/white-house/biden-cut-asia-trip-short-return-negotiate-debt-ceiling-rcna84538), which could have detrimental effects on the markets and global financial system. 

Investors' expectations regarding the next Federal Open Market Committee (FOMC) meeting in June have [shifted throughout the week](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html), following U.S. central bankers signaling that they see [interest rates remaining high](https://www.reuters.com/markets/us/we-may-need-go-up-interest-rates-feds-bostic-2023-05-15/) or moving even higher given the rate at which inflation is slowing. The market is now [pricing in a ~33% chance](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) that the Fed will increase rates at the June 14th meeting, up from 10% a week earlier.

### BTC and ETH Recover From Recent Lows, But Remain Depressed

[Bitcoin 2023](https://b.tc/conference/), the world's premier Bitcoin conference, is taking place this week as the [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) price has been trying to nudge higher. After dropping to a two-month low around $26k USD last Friday, the price has somewhat recovered and made various unsuccessful attempts to break above the $27.5k USD resistance. Similarly, [ether (ETH)](https://www.gemini.com/prices/ether) recovered from its low of $1,737 last Friday, trading around the $1,800 USD mark throughout the week.

### GALA Sees Price Boost Following v2 Upgrade

[Gala Games (GALA)](https://www.gemini.com/prices/gala) completed its [Version 2 upgrade](https://blog.gala.games/a-pledge-to-our-community-ensuring-the-long-term-strength-of-our-node-network-and-gaming-ecosystem-d3e5ce08ec72) this week along with an airdrop for all GALA Version 1 holders. The GALA v2 airdrop resulted in v1 holders receiving a 1:1 airdrop of the v2 token. 

Gala also announced that it has [burned ~21 billion GALA tokens](https://decrypt.co/140539/gala-games-burns-over-600-million-worth-gala-tokens) (~$650m USD) following the v2 airdrop. They first burned 2 billion tokens which was outlined in their [2023 Vision Paper](https://blog.gala.games/a-pledge-to-our-community-ensuring-the-long-term-strength-of-our-node-network-and-gaming-ecosystem-d3e5ce08ec72), with another 4 billion tokens being burned which “was equivalent to the total revenue in GALA we have ever received.” A further 15 billion tokens were burned, which was reported to represent “nearly the entirety of our reserves.” 

These burns represented a huge proportion of the token’s maximum supply which previously was 50 billion, and were done to eliminate concerns of a potential “[dump and exit scenario](https://blog.gala.games/a-pledge-to-our-community-ensuring-the-long-term-strength-of-our-node-network-and-gaming-ecosystem-d3e5ce08ec72).” Following the news, [GALA](https://www.gemini.com/prices/gala) is currently trading up ~9% over the past seven days.

### Tether Buys More Than $200m USD of BTC to Back USDT

On Wednesday, the largest stablecoin issuer, [Tether (USDT)](https://www.gemini.com/prices/tether), announced that it would begin investing up to [15% of its net profit into BTC](https://www.cnbc.com/2023/05/17/tether-buys-222-million-worth-of-bitcoin-to-back-its-usdt-stablecoin.html), in a bid to diversify the reserves backing the stablecoin. Based on its most recent first quarter attestation report, that would be over $200m worth of Bitcoin and would add to the [$1.5b USD worth of BTC](https://www.coindesk.com/business/2023/05/10/tether-reports-148b-profit-in-q1-reveals-bitcoin-gold-reserves/) the company already holds on its balance sheet.

### Litecoin (LTC) Rallies With Next Halving Event Expected in August

[Litecoin (LTC)](https://www.gemini.com/prices/litecoin) performed well this week, with traders potentially eyeing up the next [halving event](https://www.gemini.com/cryptopedia/bitcoin-halving-history-crypto-halving-dates-btc-halving) which is [set to take place in August](https://cryptonews.com/news/litecoin-price-prediction-as-litecoin-halving-countdown-begins-can-ltc-reach-1-2023.htm). LTC went on an impressive run gaining ~18% over the past seven days.

On August 2nd, block [rewards will be cut](https://www.litecoinblockhalf.com/) from 12.5 LTC to 6.25 LTC. The launch of the [LTC Ordinals Protocol (LTC-20)](https://beincrypto.com/litecoin-community-ltc-20-experimental-standard-litecoin-nfts/) token standard on May 1st could also be a catalyst for renewed interest in LTC, with [Litecoin Daily Active Addresses](https://bitinfocharts.com/comparison/litecoin-activeaddresses.html#3y) spiking by over 200% in May.

-From the Gemini Trading Desk



![Frame 3](//images.ctfassets.net/jg6lo9a2ukvr/kLGDSQRriVY4kE6MgNSD7/c59fffcae053fcebfea391b0236e2dee/Frame_3.png)

## Perpetual Futures Contracts in Crypto

Many of the financial derivative products present in traditional financial markets have made their way over to the crypto ecosystem, offering crypto traders the ability to develop more sophisticated trading strategies. Today, we provide a high-level overview of one type of derivative, perpetual futures contracts or *perps*. 

### What are perps?

Before diving into the specific characteristics of perps, we must first understand [futures contracts](https://www.gemini.com/cryptopedia/search?query=Futures), or *futures*. A *future* is a derivative instrument whose value is tied to another underlying asset. In crypto, the underlying asset is a token like BTC. As the value of BTC goes up, so does the value of the BTC future. If you buy a BTC future, you profit when BTC goes up. Similarly, if you short sell a BTC future, you profit when BTC goes down.

[Learn more about crypto derivatives here](https://www.gemini.com/cryptopedia/cryptocurrency-derivatives-trading-synthetic-assets).

There are two types of futures: *dated* and *perpetual* (perp). The major difference is that dated futures have an expiration date. When an expiration date is reached, trader profits and losses are realized and settled. Perps, on the other hand, never expire and therefore profits and losses are only realized after the position is closed.

### Why trade a perp rather than the asset itself?

If the value of a perp is tied to the value of the underlying asset, why not just trade the asset? There are several reasons traders decide to trade perps, which mostly have to do with characteristics of perps that generally do not exist with [spot](https://www.gemini.com/cryptopedia/search?query=Spot%20Market). 

- __Shorting__ — In the spot market, the choices a trader has are generally to hold an asset or not hold an asset. There isn’t a readily available mechanism to directly bet against a crypto asset. With perps, you can take a [short position](https://www.gemini.com/cryptopedia/search?query=Short%20Position%20(Shorting)), effectively betting against an asset to profit when the price falls.
- __Leverage__ — With spot, if the price of the asset goes up 10%, the value of the position also goes up 10%. When trading perps, a trader can use [leverage](https://www.gemini.com/cryptopedia/search?query=Leverage), which has a multiplier effect on gains and losses, sometimes as high as 100x or 125x. Leverage enables traders to take larger positions without investing more capital. This is often known as trading on margin.
- __Never holding the asset__ — Most crypto perps contracts are denominated and settled in a stablecoin, meaning you never have to hold the underlying asset in your margin account to trade the corresponding perp. This is especially beneficial if you trade several different perps (BTC, ETH, SOL, etc.) because you only need to hold one stablecoin in your margin account, rather than each crypto.

### How are perps typically used?

There are multiple reasons to trade perps, we’ll touch on a few of them here:

- __Speculation__ — the most obvious use of perps is to make a [directional bet](https://www.gemini.com/cryptopedia/search?query=Speculative%20Investment) on the price of an asset. For the benefits stated above, perps can allow an investor to efficiently manage the direction and size their position.
- __Hedging__ — if a trader is holding an asset but wants to be insulated from the risk of the asset going down ([hedged](https://www.gemini.com/cryptopedia/search?query=Hedge)), they can offset their holding by taking a short position in the perp without having to sell the asset outright.
- __Trading strategies__ — The flexibility and structure of perps makes them ideal for a variety of trading strategies. One example is basis trading, where a trader effectively arbitrages price differences between spot, perps, dated futures or even similar instruments on different exchanges.

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, May 19, 2023

We are thrilled to highlight an exciting new perk for [Gemini Credit Card](https://www.gemini.com/credit-card)* holders — the addition of __Merchant Reward Offers† — giving you even more crypto back on your purchases with select merchants__! All Gemini Credit Card holders are eligible for merchant reward offers, which are offered in addition to the typical rewards you already enjoy.

### Enrolling in Merchant Reward Offers

If you have a Gemini Credit Card, then you will automatically have access to Merchant Reward Offers.‡ You can view your personalized offers in the Merchant Reward Offers section of your Credit Card dashboard.

[Click here to apply for the Gemini Credit Card](https://www.gemini.com/credit-card)

Merchant rewards are received in addition to your everyday rewards of __3% back on dining, 2% back on groceries, and 1% back on everything else__ you purchase with your Gemini Credit Card.

![Blog Merchant rewards](//images.ctfassets.net/jg6lo9a2ukvr/1U3m2ikE6l5P6uN6bN60s5/d8347f6557db07cdd8a9f79c63aa96ca/Blog_Merchant_rewards.png)

Some Merchant Reward Offers are applied automatically by using your Gemini Credit Card while others require you to tap-to-activate before making a purchase.

Every Merchant Reward Offer is subject to its respective terms set by the merchant, which can be accessed in the offer details when you’re logged in to your account. Once earned, Merchant Reward Offers are applied to your account within 30 days — with no further action needed.

### Earn Crypto While You Spend

The Gemini Credit Card is a powerful tool for you to get started with crypto. You can begin with the swipe of a card and start building your crypto portfolio right away. But, instead of spending your own money to buy crypto, your credit card rewards are automatically invested in the crypto of your choice.

We are committed to creating more opportunities for crypto to grow. We hope you join us as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

*A Gemini Mastercard®. Issued by WebBank. Terms Apply. Engaging with crypto involves risks, including the risk of your crypto rewards declining in value over time. Past performance does not guarantee future results.

†  For more information on Merchant Reward Offers, click [here](https://support.gemini.com/hc/en-us/articles/14959384251803-Merchant-Reward-Offers). 

‡If you have a Gemini Credit Card, you’re enrolled in Merchant Reward Offers; however, you can opt out of Merchant Reward Offers at any time by calling 1-877-725-1116. Some Merchant Reward Offers are applied automatically by using your Gemini card while others require you to tap-to-activate before making a purchase.

Boost Your Gemini Credit Card Rewards With New Merchant Offers

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss DAOs.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: DAOs__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 10.20% | $26,311
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 9.47% | $1,766
---
[Liquity (LQTY) Price](https://www.gemini.com/prices/liquity) | ⬇️ 30.90% | $1.151
---
[Injective (INJ) Price](https://www.gemini.com/prices/injective) | ⬇️ 25.20% | $5.782
---
[Fetch.ai (FET) Price](https://www.gemini.com/prices/fetch-ai) | ⬇️ 23.70% | $0.235
---

---

### Crypto prices as of Friday, May 12, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- BRC-20 tokens and Ordinals transactions clogged up the Bitcoin network and transaction fees spiked to the highest since April 2021. BTC prices had a volatile week starting above $29k USD before plunging to around $26.5k USD by Friday.
- U.S. CPI came in-line with expectations, causing crypto to rally with risk assets. However, rumors of the U.S. government moving digital assets on-chain circulated once again, leading to a sell off led by BTC that has the asset class on its backfoot toward the end of the week.
- Crypto Twitter was buzzing this week with memecoins back in the spotlight led by PEPE’s meteoric rise. However, top new memecoins like PEPE, TURBO, and ORDI were well off their highs by the end of the week, declining by more than 50%. 
- Tether (USDT) published eye-popping first quarter results, reporting $1.48b USD in net profits.

### Noisy Week for Bitcoin Network With BRC-20 Tokens in the Spotlight

Bitcoin had an eventful week as the network was severely congested, caused by the minting of 14,000+ [BRC-20 tokens](https://cointelegraph.com/news/brc-20-tokens-surpass-1b-market-cap-as-wallet-providers-prepare-integration). BRC-20 is [a new fungible token standard](https://cryptoslate.com/insights/brc-20-tokens-approach-1b-market-cap/) for the Bitcoin network, analogous to [ERC-20 tokens](https://www.gemini.com/cryptopedia/search?query=ERC-20%20Tokenization%20Standard) on Ethereum, which allows for the creation of new tokens stored on Bitcoin. 

The rapidly growing interest in BRC-20 tokens was reflected in [a spike in transaction fees](https://cointelegraph.com/news/bitcoin-under-siege-by-brc-20-coins-with-soaring-fees-claims-analyst) on the Bitcoin network as users minting BRC-20 tokens took up over [50% of total transactions](https://dune.com/cryptokoryo/brc20). As a result, the Bitcoin mempool, where [unconfirmed transactions sit](https://www.gemini.com/cryptopedia/search?query=Mempool) before inclusion in a new block, saw [more than 450k transactions](https://twitter.com/WhaleWire/status/1655561032394240001?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1655561032394240001%7Ctwgr%5E93770ac7994e23f90621d33f7a45452606b2eebf%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fwhy-is-bitcoin-price-down-today) in the pipeline at one point. The congestion and high transaction fees led Binance to [suspend Bitcoin withdrawals twice](https://cointelegraph.com/news/binance-halts-bitcoin-withdrawals-for-the-second-time-in-12-hours) at the start of the week, before enabling BTC Lightning Network withdrawals to help tackle the issue. 

Ordinals and BRC-20 tokens have been controversial in the Bitcoin community. Some users noted the increased use cases and potential for growing Layer-2 applications. Others, including a leading Bitcoin developer, [suggested restricting or blocking their usage](https://decrypt.co/139576/bitcoin-developer-calls-block-ordinals-brc-20-tokens-network) citing these transactions as spam. [At a high-level](https://decrypt.co/resources/what-are-ordinals-a-beginners-guide-to-bitcoin-nfts), Ordinals are the Bitcoin equivalent of Ethereum-based NFTs. 

### U.S. Inflation Shows Signs of Abating

The U.S. Consumer Price Index (CPI) data for April came in at [4.9% on an annual basis](https://www.cnbc.com/2023/05/10/cpi-inflation-april-2023.html), slightly below expectations. Released on Wednesday, the data showed a mild 0.4% monthly increase for April. The trends further [reinforced investors' confidence](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) that the Federal Reserve will pause interest rate hikes at its next policy meeting in June, and begin cutting rates later in the year. 

Stocks closed [slightly higher](https://www.tradingview.com/symbols/SPX/?exchange=SP) on Wednesday as a result, but the ongoing regional banking turmoil and the debt ceiling debate in Congress that appears to be [hitting an impasse](https://www.reuters.com/world/us/us-government-credit-default-swaps-hit-all-time-high-debt-ceiling-impasse-2023-05-10/) continue to weigh on investors.

### Rollercoaster Week for BTC Price

The [flurry of activity](https://www.nasdaq.com/articles/high-bitcoin-fees-from-brc-20-and-ordinals-lead-to-controversy-and-challenges) around Bitcoin created some negative headwinds that pushed the [BTC price](https://www.gemini.com/prices/bitcoin) down from above $29k USD on Sunday toward the bottom of its two-month range around $27.5k USD on Wednesday morning. 

Following a price recovery back above ~$28.3k USD following positive CPI data, BTC price suddenly declined later on Wednesday as rumors of [the U.S. government selling 9.8k BTC](https://coinmarketcap.com/headlines/news/u-s-government-sold-off-9-8k-btc-at-227m-report/) began to circulate again, pushing the price as low as ~$26.8k USD. The rumors were quickly [found to be false](https://cointelegraph.com/news/bitcoin-fees-plummet-95-as-btc-price-recovers-from-us-gov-t-scare) resulting in a short-term price rebound.

By the end of the week, the [BTC price](https://www.gemini.com/prices/bitcoin) moved lower hovering around $26.5k USD by Friday morning. Liquidity conditions have worsened resulting in wider bid-ask spreads as it was [reported](https://www.coindesk.com/business/2023/05/10/bitcoin-liquidity-on-the-brink-as-jane-street-and-jump-exit-crypto-markets/) two major market makers were paring back their U.S. crypto trading operations.

### PEPE Revitalizes Crypto Twitter

Crypto Twitter [received a boost](https://www.coindesk.com/markets/2023/04/18/pepe-the-frog-memecoins-rocket-as-crypto-twitter-moves-over-doge-obsession/) this past week as memecoin mania took over once again, led by the frog-themed coin [PEPE](https://www.gemini.com/prices/pepe) which brought with it a wave of FOMO across the space typically seen during bull markets. [PEPE](https://www.gemini.com/prices/pepe) became the [fastest-growing ERC-20 token in history](https://messari.io/report/pepe-by-the-numbers?utm_medium=organic_social&utm_source=twitter_messaricrypto&utm_campaign=pepe_by_the_numbers) as it took only 23 days from launch to cross the $1b USD market cap, moving into the top 50 tokens, and acquiring over 100k holders. 

Another trending token was [TURBO](https://coinmarketcap.com/currencies/turbo/), a memecoin created [using the popular AI tool ChatGPT](https://fortune.com/crypto/2023/05/11/new-memecoin-77-million-market-cap-gpt-4/) with a budget of $69, which went on to hit a [market cap of over $100m USD](https://coinmarketcap.com/currencies/turbo/) last weekend. Even Bitcoiners have got in on the action, with Bitcoin Ordinals and BRC-20 tokens seeing [a rise in popularity](https://decrypt.co/139357/bitcoin-brc-20-tokens-near-billion-market-cap-exchanges-list-ordi). The total market cap of BRC-20 tokens surpassed $1b USD this week for the first time, with [ORDI](https://coinmarketcap.com/currencies/ordinals/) being [the largest to date](https://decrypt.co/139357/bitcoin-brc-20-tokens-near-billion-market-cap-exchanges-list-ordi). 

The memecoin mania, however, appears to be subsiding for the time being with a number of the biggest trending tokens since last weekend seeing greater than 50% drops from their peaks, including [PEPE](https://www.gemini.com/prices/pepe), [TURBO](https://coinmarketcap.com/currencies/turbo/), and [ORDI](https://coinmarketcap.com/currencies/ordinals/) mentioned above.

### Tether Reports Strong First Quarter Profits

Stablecoin issuer [Tether (USDT)](https://www.gemini.com/prices/tether) reported [$1.48b USD in net profits](https://decrypt.co/139604/tether-posts-massive-first-quarter-profits-of-1-48-billion) for the first quarter of the year and [an increase of more than 20%](https://news.bitcoin.com/tether-stablecoin-sees-22-growth-in-2023-despite-dollar-pegged-token-economys-contraction/) in the tokens in circulation. As part of the report, Tether revealed the majority of its reserves are invested in U.S. Treasury Bills, but also holds [4% of the firm's reserves in gold and 2% in BTC](https://www.coindesk.com/business/2023/05/10/tether-reports-148b-profit-in-q1-reveals-bitcoin-gold-reserves/). Tether has seen its market share of the stablecoin sector [grow over the first quarter](https://blockworks.co/news/usdt-market-share-all-time-high) of the year following the minting of new BUSD being halted and the brief de-pegging of USDC during the collapse of Silicon Valley Bank.

-From the Gemini Trading Desk



![Frame 3](//images.ctfassets.net/jg6lo9a2ukvr/kLGDSQRriVY4kE6MgNSD7/c59fffcae053fcebfea391b0236e2dee/Frame_3.png)

## Decentralized Autonomous Organizations (DAOs)

The dynamic crypto ecosystem has redefined what is possible with modern finance, from democratizing the transfer of value to reframing how we think about governance in the digital world. 

Decentralized autonomous organizations (DAOs) have played an important role in the growth of [decentralized finance (DeFi)](https://www.gemini.com/cryptopedia/what-is-defi-crypto-decentralized-finance-projects), building crypto communities and disintermediating decision-making processes across the crypto ecosystem. This week we take a high-level view of DAOs and their main characteristics. 

### What is a DAO?

DAOs are blockchain-based cooperatives that are collectively owned by its members, with rules set and executed via [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained). They replace centralized management structures with a techno-democratic approach wherein decisions are voted upon by investor-stakeholders. DAOs are built on top of blockchains (often [Ethereum](https://www.gemini.com/cryptopedia/ethereum-smart-contracts-tokens-use-cases)) and their transactions are visible on the underlying blockchain protocol.

[Dive deeper into what DAOs are here](https://www.gemini.com/cryptopedia/decentralized-autonomous-organization-dao).

By circumventing the need for human intervention or centralized coordination, DAOs are often referred to as “[trustless](https://www.gemini.com/cryptopedia/trustless-meaning-blockchain-non-custodial-smart-contracts)” systems. A DAO’s trustless decision-making framework is generally intended to help make governance accessible to everyone, rather than a select few. 

In practice, DAO governing bodies oversee the allocation of protocol resources and ensure the long-term viability of the projects they support.

[Learn more about DAO governance here](https://www.gemini.com/cryptopedia/dao-crypto-decentralized-governance-blockchain-governance).

While not every blockchain project utilizes a DAO, the growth of [DeFi](https://www.gemini.com/cryptopedia/open-vs-decentralized-finance-defi) protocols has heightened the profile of blockchain governance, driving further investment and interest in decentralized governance. [According to DeepDAO](https://deepdao.io/organizations), DAOs oversee more than $21.5 billion USD in digital assets as of May 2023. 

### What are the main characteristics of DAOs?

Although some DAOs operate as independent protocols, the vast majority of them share the following characteristics:

1. __Tokenization__: DAOs often use blockchain-based tokens to represent voting rights, with token holders able to participate in network governance.
2. __Self-enforcement__: DAOs employ smart contracts that automate organizational rules. These smart contracts can greatly reduce — or even eliminate — the need for intermediaries that might compromise decentralized decision-making.
3. __Autonomous automatization__: A single smart contract is only capable of handling simple transactions. DAO frameworks define a complex set of smart contracts that enable multi-party interactions — without human involvement.
4. __Decentralized infrastructure__: Although DAOs use decentralized governance, the underlying network must also exist on distributed infrastructure. Without adequate decentralization, governance can be exploited by those with significant enough computing power.
5. __Transparent data__: Blockchain immutability helps DAOs function successfully as decentralized governance mechanisms. [Immutability](https://www.gemini.com/cryptopedia/glossary#immutability) allows protocols to communicate about organizational processes and data in a transparent way.
6. __Trust mechanism__: Smart contract conditions and other protocol mechanisms codify a certain degree of trust into DAOs. As a result, a variety of agreements between network stakeholders can occur without involving third parties, creating what is known as a “trustless” system.

Read more about the origins of DAOs and [an early DAO hack that shook the crypto world](https://www.gemini.com/cryptopedia/the-dao-hack-makerdao). DAOs come in many forms, [read about investment, NFT, and exchange DAOs here](https://www.gemini.com/cryptopedia/nft-dao-investment-fund-introduction-to-daos). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, May 12, 2023

We are thrilled to announce support for [__Pepe ($pepe)__](https://www.gemini.com/prices/pepe)!*

__$pepe is now available for trading__ on the Gemini Mobile App and website for USD, GBP, EUR, CAD, AUD, HKD, and SGD pairs and on our API/FIX and ActiveTrader applications for the USD trading pair. __$pepe__ is also available for custody on Gemini. 

[__If you don’t have a Gemini account, you can create one here__](https://exchange.gemini.com/register).

[Learn more about all the tokens we support here](https://www.gemini.com/prices). 

__Pepe ($pepe)__ is an Ethereum-based token that launched on April 14, 2023. Following in the footsteps of meme coins like [Dogecoin ($DOGE)](https://www.gemini.com/prices/dogecoin) and [Shiba Inu ($SHIB)](https://www.gemini.com/prices/shiba-inu), __$pepe__ quickly rose in popularity in the days after launch, hovering around $750 million market cap as of May 9, 2023. __$pepe__ builds upon the popular “Pepe the Frog” meme created by Matt Furie in the early 2000s. 

__$pepe__ continues the tradition of giving the control of money back to the people. We’re not here to tell you what money is. We’ll leave that up to you. We’re here to empower you with greater choice, independence, and opportunity, as we continue on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

**$pepe is a new meme token. $pepe has no defined utility; its value may be derived only from the continued willingness of market participants to demand and trade the token, which may result in the potential for permanent and total loss of value should participants choose to no longer demand or trade $pepe. The token may also be subject to extreme price volatility, in particular if large, concentrated holdings of $pepe are liquidated in a short period of time. By trading $pepe, you acknowledge that you have read this risk disclosure and understand the risks associated with trading $pepe.*

*Updated: May 10, 2023*

Gemini Now Supports Pepe ($pepe)

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss crypto mining.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: Crypto Mining__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 0.47% | $29,315
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 3.47% | $1,952
---
[Uma (UMA) Price](https://www.gemini.com/prices/uma) | ⬆️ 44.60% | $2.727
---
[GeoJam (JAM) Price](https://www.gemini.com/prices/geojam) | ⬇️ 22.20% | $0.0014
---
 [Maple Finance (MPL)](https://www.gemini.com/prices/maple) | ⬇️ 21.20% | $6.314
---

---

### Crypto prices as of Friday, May 5, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- BTC stayed the course this week, trading above $29k USD as of Friday morning. The ETHBTC pair has seen some consolidation as the post-Shapella high begins to wear off. 
- The Fed raised interest rates by a further 25 basis points on Wednesday and signaled a potential coming pause in rate hikes. That narrative was complicated on Friday as the job market showed continued strength.
- First Republic Bank was seized by regulators and sold to JPMorgan Chase early in the week, as banking concerns continue to simmer. 
- The Sui mainnet went live on Wednesday, quickly overtaking established blockchains like Solana, Avalanche and Aptos in market capitalization. 

### Bitcoin Remains Range Bound

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) continued to trade within its recent range this week, changing hands at ~$29.2k USD as of Friday morning. BTC had fallen below $28k USD on Monday after some weekend weakness, but pared its losses as the week progressed. Its recovery [could be attributed](https://cointelegraph.com/news/btc-price-gains-6-as-first-republic-bank-drama-delights-bitcoin-bulls) to more doubts on the structural stability in the banking sector following [the collapse of First Republic Bank](https://thehill.com/business/banking-financial-institutions/3982011-first-republic-bank-collapse-spurs-fears-for-banking-system-broader-economy/) and falling share prices [across regional banks](https://www.cbsnews.com/news/pacwest-western-alliance-stock-price-first-republic-bank-jpmorgan-chase/). 

[BTC](https://www.gemini.com/prices/bitcoin) saw further gains in the hours after this [week’s Federal Open Market Committee (FOMC) meeting](https://www.federalreserve.gov/monetarypolicy/files/monetary20230503a1.pdf), breaking back above the $29k USD level. [Ether (ETH)](https://www.gemini.com/prices/ether) has traded in line with BTC, with the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/) seeing some consolidation around the 0.065 level for the first time since the Shapella upgrade [when it hit a high of 0.071](https://www.tradingview.com/symbols/ETHBTC/).

### After 10 Rate Hikes Fed Signals a Pause

On Wednesday, the Federal Reserve raised interest rates by [another 25 basis points (bps)](https://www.cnbc.com/2023/05/03/live-updates-fed-decision-may-2023.html), as expected, as it continues its fight against inflation. The latest increase marks the Fed’s [tenth consecutive rate hike](https://www.federalreserve.gov/monetarypolicy/openmarket.htm) since March 2022 and brings the target range for the federal funds rate to its highest level since 2007. 

Notably, this time around, the Fed omitted a section from its previous statement that said “some additional firming [may be appropriate](https://www.federalreserve.gov/monetarypolicy/files/monetary20230322a1.pdf)” and replaced it with “[determining the extent to which](https://www.federalreserve.gov/monetarypolicy/files/monetary20230503a1.pdf) additional policy firming may be appropriate.” This change in language may [suggest a coming pause](https://apnews.com/article/federal-reserve-inflation-interest-rate-hikes-recession-aba096229d327d8abeb4bc13d85d1b2b) in interest rate hikes as the Fed assesses how current interest rates are impacting growth and inflation. [Turmoil in the banking sector](https://apnews.com/article/federal-reserve-inflation-interest-rate-hikes-recession-aba096229d327d8abeb4bc13d85d1b2b) and an economy showing signs of a slowdown further indicate that a pause in rates is expected at the next FOMC in June.

This narrative was quickly put to the test on Friday as non-farm payrolls for April came in [well above expectations](https://www.cnbc.com/2023/05/05/jobs-report-april-2023-job-growth-totals-25300-in-april.html) at 253,000. Wages also increased at a rate above expectations. Combined, these numbers [complicate the Fed’s decision-making process](https://www.bloomberg.com/news/articles/2023-05-05/hot-jobs-report-raises-odds-fed-keeps-rates-higher-for-longer#xj4y7vzkg) in possibly pausing interest rate hikes as it balances the growth of the economy vs. economic data that may further contribute to inflation. 

### Banking Crisis Fears Continue With Another Failure

On Monday, after months of struggles and depleting deposits, First Republic Bank was [seized by regulators and sold to JPMorgan Chase](https://apnews.com/article/first-republic-bank-silicon-valley-fdic-5ab48702b7136d42f73ac13e0a20955d/). First Republic’s potential vulnerability had been in focus since the collapse of Silicon Valley Bank and others in March. 

The seizure of First Republic had minimal impact [on major U.S. indices](https://www.tradingview.com/symbols/SPX/?exchange=SP) as they opened on Monday. However, as the week progressed share prices across major U.S. regional banks [saw steep declines](https://www.cbsnews.com/news/pacwest-western-alliance-stock-price-first-republic-bank-jpmorgan-chase/) as fears around a confidence crisis grew and the impact of the impending rate hike further weighed down prices. Regional banks saw declines steepen after the release of FOMC minutes on Wednesday.

PacWest Bank appears to be the latest bank in trouble as it confirmed on Thursday that it is [exploring all strategic options](https://www.reuters.com/business/finance/us-regional-lenders-slump-banking-turmoil-fears-brew-2023-05-03/), including a potential sale following a [greater than 50% fall](https://www.tradingview.com/symbols/NASDAQ-PACW/) in share price during after-hours trading. Indicative of the volatility in regional bank stocks, PacWest shares recovered on Friday and recorded its highest intraday gain ever. Nevertheless, the stock is still down over 45% this week.

### SEC Given 10 Days to Respond to Coinbase’s Regulatory Clarity Suit

Coinbase said on Thursday that a U.S. federal court has [compelled the Securities and Exchange Commission (SEC) to respond](https://cointelegraph.com/news/sec-has-10-days-to-respond-to-coinbase-complaint-legal-exec) to a suit lodged by Coinbase seeking regulatory clarity around crypto, potentially setting the case on a fast track. The order requires the SEC to respond to Coinbase within 10 days, and grants Coinbase seven days after the response for its reply. 

The court action comes after [Coinbase sued the SEC](https://www.cnbc.com/2023/04/24/coinbase-sues-sec-after-months-of-silence-from-federal-regulator.html) last week in federal court seeking an answer on whether the rule-making process governing securities applied to the crypto industry. The suit sets up the potential for Coinbase to challenge that the SEC has failed to provide a well-defined regulatory framework for U.S.-based crypto companies.

### Sui Mainnet Launches

The highly-anticipated launch of the Sui mainnet [went live on Wednesday](https://www.coindesk.com/business/2023/05/03/sui-mainnet-goes-live-token-trades-at-133/). Sui is a Layer-1 blockchain platform developed by ex-Meta engineers that promises fast transaction speeds.

Immediately after launch, its SUI token experienced [notable price volatility](https://coinmarketcap.com/currencies/sui/) and has consolidated around the $1.35 USD level. At current prices, its fully diluted market cap sits at ~$13.5bn USD surpassing that of some of its main L1 competitors such as [Aptos (APT)](https://coinmarketcap.com/currencies/aptos/) ~$10bn USD, [Solana (SOL)](https://coinmarketcap.com/currencies/solana/) ~$12bn USD, and [Avalanche (AVAX)](https://coinmarketcap.com/currencies/avalanche/) ~$12bn USD.

-From the Gemini Trading Desk



![Frame 3](//images.ctfassets.net/jg6lo9a2ukvr/kLGDSQRriVY4kE6MgNSD7/c59fffcae053fcebfea391b0236e2dee/Frame_3.png)

## Crypto Mining

Crypto mining is a central component of [proof-of-work (PoW)](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Work%20(PoW)) blockchains, playing a crucial role in verifying new blocks and securing the blockchain. As Bitcoin and other cryptos have become household names, mining has come under scrutiny for its energy-intensive process. Recently, the White House [proposed a 30% tax](https://www.coindesk.com/policy/2023/05/02/white-house-pushes-for-punitive-tax-on-crypto-mining/) on the energy costs attributed to crypto mining, further putting a spotlight on the process. 

This week we provide a high-level introduction to crypto mining.

### What is crypto mining?

In short, mining is the process of using computing power to verify and record blockchain transactions. The mining process is used on all blockchains that employ a PoW [consensus mechanism](https://www.gemini.com/cryptopedia/search?query=Consensus%20Mechanism), to securely process, verify, and confirm transactions. 

Miners validate transactions by solving complex math problems, which results in the minting of new coins while reinforcing the network's security and trustworthiness. In order to incentivize users to allocate processing power to mine new blocks, miners are typically rewarded with a fraction of a network's native currency with every successfully mined block.

### How does Bitcoin mining work?

Bitcoin miners compete to solve a computationally-intensive, PoW puzzle. The “winning” miner is rewarded with a set number of bitcoin (plus network [transaction fees](https://www.gemini.com/cryptopedia/search?query=Transaction%20Fee)) called the “[block reward](https://www.gemini.com/cryptopedia/search?query=Block%20Reward).” One miner wins the block reward roughly every 10 minutes, regardless of the amount of processing power that miners collectively bring to bear on the network. However, more processing power increases a miner's chances of winning. 

[Learn more about Bitcoin’s fundamental technical structure here](https://www.gemini.com/cryptopedia/how-does-bitcoin-work-blockchain-halving).

The puzzle requires a miner to create a new block by taking all of the network’s new and unconfirmed transactions, as well as information from the previous block (i.e., its “[block header](https://www.gemini.com/cryptopedia/search?query=Block%20Header)”), and “hash” them using the [SHA-256 cryptographic algorithm](https://www.gemini.com/cryptopedia/search?query=SHA-256) (hence “crypto”). 

[Hashing](https://www.gemini.com/cryptopedia/search?query=Hashing) is a process whereby a specific input (in this case, recent transaction data and the block header) is entered into an algorithm to generate a specific output. A miner must take this input and guess a number called a “[nonce](https://www.gemini.com/cryptopedia/search?query=Nonce)” that when entered together into SHA-256, will generate an output that satisfies the output threshold set by the Bitcoin protocol. 

[Click here to learn about how mining helps secure the Bitcoin network](https://www.gemini.com/cryptopedia/how-does-bitcoin-mining-work).

Mining boils down to guessing nonces as quickly as possible. If a miner hits the specified output threshold, she will broadcast her new block (which includes her nonce) to other miners on the network so that they can hash it themselves and verify her solution. If a majority of miners — 51% or more — reach consensus on her solution, she will be allowed to add her new block to the blockchain and receive the block reward. And then the race begins all over again.

[Click here to learn more about the different ways crypto is mined](https://www.gemini.com/cryptopedia/crypto-mining-rig-bitcoin-mining-calculator-asic-miner).

### Crypto mining and the environment

Environmental impact has been a main source of criticism around crypto mining. Whereas critics highlight that Bitcoin mining energy consumption can reach [more than 100 terawatt-hours](https://rmi.org/cryptocurrencys-energy-consumption-problem/#:~:text=Bitcoin%20alone%20is%20estimated%20to,fuel%20used%20by%20US%20railroads.) per year, others have shown that individual industries [can consume 50x more energy](https://cointelegraph.com/news/why-banking-uses-at-least-56-times-more-energy-than-bitcoin) than Bitcoin.

In some cases, Bitcoin mining can work hand-in-hand with energy grids to support local electricity demands, as in [this example in Sweden](https://www.coindesk.com/layer2/miningweek/2022/03/26/can-crypto-miners-make-the-world-greener/). Those in the crypto world also have also started developing robust guidance to [help assess climate impact](https://www.southpole.com/publications/report-accounting-for-cryptocurrency-climate-impacts-publication) and find steps to [decarbonize crypto](https://www.weforum.org/agenda/2022/06/crypto-sustainability/), with studies showing that [crypto can play an important role](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4347220) in fostering general decarbonization efforts. 

The energy concerns around Bitcoin and PoW mining have also been an impetus for other blockchains, like Ethereum, to move over to the much less energy-intensive [proof-of-stake consensus mechanism](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Stake%20(PoS)). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, May 5, 2023

- $15 USD for you and friends or family you refer to Gemini after they open a new account and trade $100 USD or more within 30 days
- Track your referrals’ progress through our new Rewards dashboard

Today, we are thrilled to announce a brand new __[referral bonus of $15 USD](https://www.gemini.com/refer-a-friend)__ for you and friends or family you refer to Gemini after they trade $100 USD or more within 30 days! Get __up to $600 USD in rewards per year in any supported crypto__ by referring your community to open a new Gemini account. 

Along with our updated referral program, we’ve __launched the Rewards dashboard__, which gives you a full picture of your Rewards balance. 

### $15 USD Referral Bonus Per User, Up to $600 USD 

![02 Referral](//images.ctfassets.net/jg6lo9a2ukvr/QoOHWFDY3OM4zUTM5tqF9/0fdfb356872d43b8f277f5e3bc4e9b57/02_Referral.png)

From its inception, the crypto experience has been about peer-to-peer relationships. At Gemini, we’re driven to build on that ethos and we’re delighted to launch this new referral bonus. Once the person you refer trades $100 USD or more worth of crypto within 30 days, __you will both receive the $15 bonus in the crypto of your choice__. 

After you’ve sent a referral invite, you’ll be able to track the person’s progress toward reaching the $100 USD threshold through our new Rewards dashboard. 

![03 Referral](//images.ctfassets.net/jg6lo9a2ukvr/31XPiDV5iZry3Zv0BnquNF/5f33c2e62ff22390ffc150c0afa411ff/03_Referral.png)

Users in the following countries are eligible for the referral program: Australia, Belgium, Canada, Colombia, Denmark, Hong Kong, Ireland, Italy, New Zealand, Portugal, Singapore, Sweden, United Kingdom, and United States.

We believe in the promise of crypto, and that the communities we build today will be the foundations of our industry tomorrow. Over the coming months we will continue to make dynamic improvements to the Rewards dashboard as we advance our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward!

Team Gemini

Build Your Crypto Community With Gemini's New $15 Referral Offer

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss the origins of Bitcoin.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: the origins of Bitcoin__</a>



![Frame 1](//images.ctfassets.net/jg6lo9a2ukvr/58jHsmWBP9yk12oiPQHy7X/d201786646b9a775f1cc56bfa5d6cb9b/Frame_1.png)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 4.00% | $29,141
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 0.93% | $1,885
---
[Maple Finance (MPL) Price](https://www.gemini.com/prices/maple) | ⬆️ 61.50% | $7.717
---
[Render Token (RNDR) Price](https://www.gemini.com/prices/render-token)| ⬆️ 43.40% | $2.478
---
[Civic (CVC) Price](https://www.gemini.com/prices/civic) | ⬇️ 10.50% | $0.1046
---

---

### Crypto prices as of Friday, April 28, 2023, at 11:55am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD.



![Frame 2](//images.ctfassets.net/jg6lo9a2ukvr/3fLGH51mwRO1exijuSQ0Jl/5e88bcfcc6cff39126724253397cd148/Frame_2.png)

### Takeaways 

- Crypto prices had a wild week, with bitcoin (BTC) dropping almost 8% in the span of an hour at one point before rallying back to hover around $29k USD. 
- Celsius went up for auction and a deal for Voyager was canceled. Coinbase sued the SEC in an effort to compel regulatory clarity. 
- In the wider economy, trouble at First Republic Bank has reignited concerns across the banking system.

### Bitcoin Rises Again During a Rollercoaster Week

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) rallied to $30k USD early this week, with new signs of strain in the U.S. banking system spurred by concerns at First Republic Bank [potentially acting as a catalyst](https://www.theblock.co/post/228317/bitcoin-price-crypto-market-first-republic-outflows?utm_source=linkedin&utm_medium=social). [Ether (ETH) prices](https://www.gemini.com/prices/ether) rallied in sympathy, closing in on $2,000 USD once again. 

On Wednesday, a fast and furious selloff in the afternoon Eastern Time saw [BTC](https://www.gemini.com/prices/bitcoin) drop almost 8% within an hour. Traders pointed to a [notification](https://twitter.com/tier10k/status/1651317391626846214?s=46&t=DLq8an4JK8ZWejR-tIKjNg) sent by Arkham Alert noting activity in crypto wallets belonging to defunct exchange Mt. Gox and the U.S. government, [inducing fears](https://decrypt.co/138086/bitcoin-plunges-7-in-an-hour-to-under-28000-as-mt-gox-us-gov-wallets-move) of supply flooding the market. Arkham later [tweeted](https://twitter.com/ArkhamIntel/status/1651341093441609735) that the notification was sent in error. 

Following the selloff, [BTC](https://www.gemini.com/prices/bitcoin) rose off the week’s lows and is trading around $29k USD as of Friday morning. [ETH](https://www.gemini.com/prices/ether)’s price action responded similarly, trading around $1,900 USD on Friday. This past week’s price moves were reflected [in BTC’s realized volatility](https://app.laevitas.ch/options/volatility/rv/realizedvol), which hit as high as ~73%. BTC and ETH prices whipsawed and are +4% and -1% this week as of Friday morning, respectively. 

### Defunct Crypto Lender Celsius Goes Up For Auction

Crypto lender Celsius, which declared bankruptcy in the summer of 2022, [went up for auction](https://cointelegraph.com/news/celsius-auction-has-gemini-and-coinbase-as-new-bidders-report) in New York this week. According to reports, two new consortiums have entered the fray. Under an existing bid for the crypto lender, customers may get up to 70% of their funds returned. 

Previous court filings show that [Celsius was facing a $1.2 billion USD shortfall](https://blockworks.co/news/celsius-auction-begins-tuesday), with liabilities of $5.5 billion USD and assets amounting to $4.3 billion USD. 

### Binance.US Terminates Deal to Buy Voyager’s Assets

Voyager, another victim of crypto’s rocky 2022, said [Binance.US pulled the plug](https://blockworks.co/news/binance-bails-voyager-asset-deal) on a deal to purchase its assets for $1 billion USD. Voyager said it was disappointed in the outcome, but clarified that its existing bankruptcy plan would allow for customers to receive crypto and cash that had been tied up.

Binance.US suggested that [an unclear regulatory regime](https://twitter.com/BinanceUS/status/1650932061866172435) in the U.S. around crypto played a role in its decision to cancel the deal. The U.S. Department of Justice had also [weighed into the deal in March](https://cointelegraph.com/news/voyager-s-1b-sale-to-binance-us-put-on-hold-by-us-court), seeking to block it. The government ultimately [withdrew its opposition](https://www.coindesk.com/policy/2023/04/20/us-government-allows-the-bulk-of-voyager-binanceus-deal-to-proceed/) to the deal.

### Coinbase Sues SEC Asking for Regulatory Clarity

On Monday, [Coinbase sued the Securities and Exchange Commission (SEC)](https://www.cnbc.com/2023/04/24/coinbase-sues-sec-after-months-of-silence-from-federal-regulator.html) in federal court hoping to compel an answer on whether the rule-making process governing securities applied to the crypto industry as well. This sets up the potential for Coinbase to challenge that the SEC has failed to provide a well-defined regulatory framework for U.S.-based crypto companies. 

### First Republic Bank Reignites U.S. Banking Concerns

First Republic Bank, [the 14th largest bank in the U.S. at the end of 2022](https://www.bankrate.com/banking/biggest-banks-in-america/), revealed this week that it saw [net outflows exceeding $100 billion](https://www.cnbc.com/2023/04/25/first-republic-falls-more-than-40percent-to-record-low-after-reporting-massive-deposit-drop.html) in Q1. The bank’s stock hit a new all-time low, dipping ~55% this week. Just this year, [its stock price is down ~95%](https://www.tradingview.com/symbols/NYSE-FRC/). 

The troubled bank has since been said to be [considering up to $100B in asset sales](https://www.bloomberg.com/news/articles/2023-04-25/first-republic-said-to-weigh-up-to-100-billion-in-asset-sales?srnd=premium#xj4y7vzkg) in an attempt to right the ship. In March, major U.S. banks [gave First Republic $30 billion USD](https://www.reuters.com/business/finance/credit-suisse-borrow-up-54-bln-it-seeks-calm-investor-fears-2023-03-16/) in hopes that it could avoid a similar fate to SVB, Signature, and Silvergate. 

-From the Gemini Trading Desk



![Frame 3](//images.ctfassets.net/jg6lo9a2ukvr/kLGDSQRriVY4kE6MgNSD7/c59fffcae053fcebfea391b0236e2dee/Frame_3.png)

## The Origins of Bitcoin

Most of us think of Bitcoin as the original cryptocurrency, as it spawned an entirely new asset class. While its impact on the financial system and the wider world has been profound, there were a few much lesser known precursors that laid the foundation for the crypto universe. Today, we look back to the roots of Bitcoin. To read more deeply about this topic check out [this article on Cryptopedia authored by our founders](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis). 

### What came before Bitcoin?

Bitcoin has played a unique role in creating a movement to decentralize existing, centralized financial services, but it was not the first attempt at creating digital money.

The notion of scarcity with respect to digital money was famously envisioned by [Nick Szabo](https://www.gemini.com/cryptopedia/search?query=Nick%20Szabo) when he [proposed Bit Gold](https://unenumerated.blogspot.com/2005/12/bit-gold.html) in 1998. B-Money, another conceptual precursor to Bitcoin proposed by Wei Dai, a computer engineer, [Cypherpunk](https://www.gemini.com/cryptopedia/search?query=Cypherpunk), and cryptographer, arose around the same time and is referenced in the Bitcoin whitepaper. 

Going even further back, the idea of building cost (or digital scarcity) into a system using [proof of work (PoW)](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Work%20(PoW)) was first conceptualized by Cynthia Dwork and Moni Naor in 1993 as a way to protect Internet services from abuse such as spam. In 1997, an English Cypherpunk named Dr. Adam Back implemented this concept into his project Hashcash, a service aimed at limiting spam and denial of service attacks by requiring a sender to generate a Hashcash token by solving a PoW puzzle. 

[Read more about Bitcoin’s precursors here](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis#section-bitcoins-predecessors).

Together, Bit Gold, B-Money, Hashcash, and other early examples of digital money and consensus mechanisms set the stage for Bitcoin.

### Bitcoin arrives on the scene

[The Bitcoin white paper](https://bitcoin.org/bitcoin.pdf) was published by the mysterious [Satoshi Nakamoto](https://www.gemini.com/cryptopedia/is-satoshi-nakamoto-alive-cypherpunk-satoshi-nakamoto-quotes) in 2008 and the network launched in January of 2009 upon the mining of the “[Genesis Block](https://www.gemini.com/cryptopedia/glossary#bitcoin-genesis-block)” — the first block of the Bitcoin blockchain. Bitcoin created a digital currency that operates in a fully-decentralized, trustless manner that allows users to send monetary value to each other through the Internet without the need for trusted, financial intermediaries. 

This was made possible by a major breakthrough in its PoW [consensus mechanism](https://www.gemini.com/cryptopedia/search?query=Consensus%20Mechanism). Instead of relying on a majority of [nodes](https://www.gemini.com/cryptopedia/search?query=Node) (known as “[miners](https://www.gemini.com/cryptopedia/search?query=Miner)”) to reach consensus, Bitcoin relies on the majority of hashrate — the network’s processing power — to reach consensus. 

[Read more about PoW here](https://www.gemini.com/cryptopedia/blockchain-types-pow-pos-private#section-proof-of-work-blockchains). 

Acquiring a majority of the network’s [hash rate](https://www.gemini.com/cryptopedia/search?query=Hash%20Rate) is expensive, making it costly for a miner to tamper with the [ledger](https://www.gemini.com/cryptopedia/search?query=Ledger). Moreover, in doing so, a dishonest miner would forgo the handsome bounties of newly minted bitcoin (known as the “[block reward](https://www.gemini.com/cryptopedia/search?query=Block%20Reward)”) that are awarded approximately every 10 minutes to the “winning” miner who correctly solves the PoW puzzle. Therefore, it is assumed that a rational, economically-motivated miner will commit her processing power toward securing the integrity of the blockchain instead of trying to manipulate it and cheat the system.

This incentive structure has turned digital money, a movement once made up predominantly of computer scientists and cryptographers, into an increasingly mainstream phenomenon. 

Check out more about the [history and culture of Bitcoin](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis), its [technical structure](https://www.gemini.com/cryptopedia/how-does-bitcoin-work-blockchain-halving), and how it's [secured by the blockchain](https://www.gemini.com/cryptopedia/how-does-bitcoin-mining-work). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, April 28, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss decentralized exchanges (DEXs).*

<a href="#Crypto Movers This Week" target="">__Crypto Movers This Week__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: Decentralized Exchanges (DEXs)__</a>

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Movers This Week (7D)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 7.47% | $27,965
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬇️ 7.93% | $1,889
---
[Immutable X (IMX) Price](https://www.gemini.com/prices/immutable-x) | ⬇️ 15.10% | $0.999
---
[Lido DAO Token (LDO) Price](https://www.gemini.com/prices/lido-dao-token)| ⬇️ 14.30% | $2.127
---
[Civic (CVC) Price](https://www.gemini.com/prices/civic) | ⬆️ 6.71% | $0.1178
---

---

### Crypto prices as of Friday, April 21, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD. 

<a href="https://exchange.gemini.com/register" class="anchorBtn" >Create an Account</a>
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto News: What Happened This Week?

### Takeaways 

Following a month-long rally, crypto prices dipped this week as bitcoin (BTC) fell below $30k USD. The U.S. banking system showed signs of stability with several large U.S. banks beating earnings expectations despite a drop in overall bank deposits. 

Stablecoins were discussed in Congress as draft legislation was introduced that would put non-bank stablecoins under the purview of the U.S. Federal Reserve. The European Union approved MiCA, a law that will implement a regulatory framework for crypto companies. In the altcoin world, a new meme token surged as it took over crypto Twitter. 

### Crypto Prices Move Lower as Banking System Stabilizes 

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) prices fell below the psychological $30k USD level, accompanied by a broader move lower across the crypto markets. The dip came after the [BTC-as-a-safe-haven narrative](https://www.coindesk.com/markets/2023/03/22/bitcoin-emerges-as-safe-haven-as-traditional-finance-faces-turmoil/) gained traction over the past month and helped push prices higher following the collapse of [Silicon Valley Bank](https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html), [Signature](https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html), and [Silvergate](https://www.cnbc.com/2023/03/08/silvergate-shutting-down-operations-and-liquidating-bank.html).

Following the [Shapella upgrade](https://cointelegraph.com/news/ethereum-shapella-upgrade-community-celebrates-as-update-goes-live-on-mainnet) last week, [ether (ETH)](https://www.gemini.com/prices/ether) prices showed resilience and outperformed amidst the broader crypto market downturn. Although ETH dropped below the $2,000 USD level on Wednesday morning, the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/) continues to hold above the 50-day moving average of ~0.067, which it broke through following the Shapella upgrade.

### Bank Q1 Results Ease Financial System Concerns

Concerns over potential further banking collapses have eased over the last few weeks, bolstered by strong bank Q1 results. Over the past 10 days, some of the largest U.S. banks, JPMorgan Chase, Citigroup, and Wells Fargo appeared to emerge from the crisis unscathed, [comfortably beating earnings expectations](https://www.cnn.com/2023/04/17/investing/premarket-stocks-trading/index.html). 

First quarter results from a number of smaller U.S. banks including [Charles Schwab](https://www.barrons.com/articles/charles-schwab-earnings-stock-price-4b39c5d0), [State Street](https://finance.yahoo.com/news/state-street-tumbles-as-it-loses-key-deposits-122940909.html), [BNY Mellon](https://finance.yahoo.com/news/bny-mellon-beats-profit-estimates-111141090.html), and [Western Alliance](https://www.fxstreet.com/news/western-alliance-wal-earnings-help-to-push-up-first-republic-frc-stock-202304191431) all showed an exodus of deposits, although [those numbers did rise again](https://www.fxstreet.com/news/western-alliance-wal-earnings-help-to-push-up-first-republic-frc-stock-202304191431) for some banks toward the end of March, showing signs of stabilization and supporting a rally in stock prices.

### Stablecoin Bill Proposed in U.S. Congress 

The U.S. House of Representatives released a discussion draft that would [regulate stablecoins](https://docs.house.gov/meetings/BA/BA21/20230419/115753/BILLS-118pih-Toproviderequirementsforpaymentstablecoinissuersresearchonadigitaldollarandforotherpurposes.pdf). The proposed legislation would place non-bank stablecoins under the [purview of the U.S. Federal Reserve](https://www.theblock.co/post/226575/new-stablecoins-bill-draft-introduced-house-of-representatives) and require them to gain approval before being issued. 

Stablecoin issuers would have to [hold reserves on a one-to-one basis](https://www.congress.gov/118/meeting/house/115753/documents/BILLS-118pih-Toproviderequirementsforpaymentstablecoinissuersresearchonadigitaldollarandforotherpurposes.pdf) and provide proof of reserves to the Fed to get approval. Those reserves would need to be composed of U.S. Treasury bills, U.S. dollars, repurchase agreements backed by Treasury bills, and central bank reserve deposits, according to the draft bill’s text. 

The draft also imposes a [two-year moratorium on algorithmic stablecoins](https://www.theblock.co/post/226575/new-stablecoins-bill-draft-introduced-house-of-representatives) (“endogenously collateralized”), while grandfathering in those already in existence. The discussion draft was debated during a U.S. House Financial Services Committee [hearing on Wednesday](https://www.congress.gov/event/118th-congress/house-event/115753?s=1&r=67), where Rep. Maxine Waters (D-CA) suggested that lawmakers should disregard the current bill and [start from scratch](https://finance.yahoo.com/news/rep-maxine-waters-suggests-house-needs-to-start-stablecoin-bill-from-scratch-181030973.html) on stablecoin regulation.

### UK Inflation Continues to Soar

In the UK, inflation data came in higher than expected on Wednesday, [remaining in double digits at 10.1%](https://www.cnbc.com/2023/04/19/uk-inflation-rate-surprises-again-with-march-figure-holding-above-10percent.html) as food prices and energy bills continued to soar, suggesting the Bank of England will further hike interest rates. 

### European Union Lays Framework for Crypto Regulation

On Thursday, European lawmakers [overwhelmingly approved](https://www.cnbc.com/2023/04/20/eu-lawmakers-approve-worlds-first-comprehensive-crypto-regulation.html) the EU’s Markets in Cryptoassets, or MiCA, regulation that lays out an explicit framework to regulate crypto companies. Under the law, which is [expected to be enacted in July](https://www.ledgerinsights.com/mica-crypto-regulations-approved-eu/), crypto asset service providers that serve clients in the EU must obtain licenses from the relevant national authorities. There will also be additional governance and liquidity requirements. 

The law provides explicit and standardized guidelines for crypto companies in the EU that some industry members have long sought, potentially creating a more predictable regulatory environment. 

### Meme Coins Return to the Spotlight

Altcoin prices had an up-and-down week, with some tokens posting double-digit declines while others rallied. [Pepe token (PEPE)](https://coinmarketcap.com/currencies/pepe/) took over crypto Twitter, resulting in the new meme coin branded after the internet meme “Pepe the Frog” gaining thousands of percent in a matter of days. Its market capitalization skyrocketed to above $100m USD earlier in the week and currently has [over 30,000 individual holders](https://etherscan.io/token/0x6982508145454Ce325dDbE47a25d4ec3d2311933) according to Etherscan. 

Other popular meme coins received a boost as a result, with [Dogecoin (DOGE)](https://www.gemini.com/prices/dogecoin) +10% and [Baby Doge Coin (BABYDOGE)](https://coinmarketcap.com/currencies/baby-doge-coin/) +35% earlier in the week before pairing the gains by Friday.

-From the Gemini Trading Desk

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## Crypto Topic of the Week: A Primer on DeFi — Decentralized Exchanges

Decentralized finance (DeFi) is a blockchain-based financial framework built on decentralized blockchain protocols and underlying smart contract technology. In general terms, DeFi provides access to different types of financial products and services without interacting with a centralized intermediary. 

DeFi has played a central role in the development of the crypto ecosystem over the past years, particularly with the ability to build decentralized applications (dApps) on blockchain networks that leverage smart contract technology like [Ethereum](https://www.gemini.com/cryptopedia/ethereum-smart-contracts-tokens-use-cases#section-decentralized-finance). This week we explore one of the central components of the DeFi ecosystem — decentralized exchanges (DEXs).

### What is a DEX?

A decentralized exchange (DEX) is a [peer-to-peer (P2P)](https://www.gemini.com/cryptopedia/search?query=Peer%20to%20Peer%20(P2P)) marketplace that connects cryptocurrency buyers and sellers. DEXs are also [non-custodial](https://www.gemini.com/cryptopedia/search?query=Non-Custodial), meaning a user remains in control of their private keys when transacting on such platforms.

DEXs employ [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) that self-execute under set conditions and record each transaction to the blockchain. These trustless, secure transactions represent an accelerating segment of the crypto market, and are pioneering new financial products.

### How Does Trading Crypto on a DEX Work?

To create a market, DEXs will typically use what are known as [automated market makers (AMMs)](https://www.gemini.com/cryptopedia/glossary#automated-market-maker-amm), which allow for trades to be executed automatically through the use of [liquidity pools](https://www.gemini.com/cryptopedia/glossary#liquidity-pool). 

Liquidity pools are mechanisms by which users can pool their assets in a DEX’s [smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) to provide asset liquidity for traders to swap between cryptos. Those providing liquidity to liquidity pools often earn trading fees or crypto rewards from the DEXs upon which they pool tokens, usually being rewarded with [liquidity provider (LP) tokens](https://www.gemini.com/cryptopedia/liquidity-provider-amm-tokens).

In short, DEXs pool tokens and provide a decentralized venue for traders to interact with liquidity pools that are governed by smart contracts. 

### The DEX Ecosystem

The DeFi ecosystem evolves quickly, and three popular DEX models that have emerged include: [Uniswap](https://www.gemini.com/cryptopedia/uniswap-decentralized-exchange-crypto-defi), [Curve](https://www.gemini.com/cryptopedia/curve-crypto-automated-market-maker), and [Balancer](https://www.gemini.com/cryptopedia/balancer-crypto-automated-pools).

- Uniswap’s technology allows users to create a liquidity pool with any pair of ERC-20 tokens with a 50/50 ratio. 
- Curve specializes in creating liquidity pools of similar assets such as stablecoins, and as a result, offers low rates and efficiency. 
- Balancer stretches the limits of Uniswap by allowing users to create dynamic liquidity pools of up to eight different assets in any ratio, expanding AMMs’ flexibility.

Learn more about [liquidity pools](https://www.gemini.com/cryptopedia/what-is-a-liquidity-pool-crypto-market-liquidity), [AMMs](https://www.gemini.com/cryptopedia/amm-what-are-automated-market-makers), and the overall [DEX landscape](https://www.gemini.com/cryptopedia/decentralized-exchange-dex-crypto) on [Cryptopedia](https://www.gemini.com/cryptopedia). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, April 21, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss the two main blockchain consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).*

<a href="#Crypto Movers This Week" target="">__Crypto Movers This Week__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: Proof of Work (PoW) and Proof of Stake (PoS)__</a>

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## Crypto Movers This Week (7D)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 8.39% | $30,305
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 10.60% | $2,063
---
[Injective (INJ) Price](https://www.gemini.com/prices/injective) | ⬆️ 45.30% | $8.265
---
[Ethernity Chain (ERN) Price](https://www.gemini.com/prices/ethernity-chain)| ⬆️ 45% | $2.541
---
[Render Token (RNDR) Price](https://www.gemini.com/prices/render-token) | ⬆️ 30.70% | $1.70
---

---

### Crypto prices as of Friday, April 14, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). All prices in USD. 

New to Gemini? Sign up below.
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## Crypto News: What Happened This Week?

### Takeaways 

The Ethereum Network implemented the Shapella upgrade on Wednesday, giving ether (ETH) stakers the ability to withdraw their crypto for the first time. ETH reached a new eight-month high despite concerns around potential ETH supply coming onto the market, trading above the $2,100 USD level. Render Network benefitted from the increased interest in Artificial Intelligence (AI), with its RNDR token trading up ~30% this week.

U.S. inflation came in a touch softer than expectations and continued to trend lower in March, but more interest rate hikes could still be on the table. Market participants expect a further rate hike in May, with a potential shift in policy coming in June.

### Crypto Prices Continue to Show Strength

[Ether (ETH)](https://www.gemini.com/prices/ether) and [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) continued to rally higher this week, with ETH breaking through the $2,000 USD level and BTC briefly hitting ~$31K USD. This is a continuation of the positive price movement we’ve seen over the past few weeks, with investors looking toward the possibility of monetary policy easing from the U.S. Federal Reserve as [early as the second half of the year](https://www.reuters.com/markets/us/traders-less-sure-fed-rate-hike-inflation-cools-2023-04-12/). 

Following Ethereum’s Shapella upgrade, there was no dip in ETH prices [as some had predicted](https://beincrypto.com/eth-whales-stacking-up-eth-shapella-upgrade/). The upgrade was [successful and as planned](https://cointelegraph.com/news/ethereum-shapella-upgrade-community-celebrates-as-update-goes-live-on-mainnet), which could have helped send ETH rallying through the $2,000 USD resistance level. The [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/) rallied from 0.062 lows on Wednesday to 0.066 after the upgrade, and surpassed 0.068 by Friday.

### Ethereum’s Shapella Upgrade Goes Live in a Smooth Transition

Ethereum's long-awaited Shapella upgrade went live [around 6:30pm ET on Wednesday](https://www.theblock.co/post/226036/ethereum-shapella-upgrade-goes-live). This marked the first major update since [the Merge](https://www.gemini.com/blog/the-ethereum-merge-what-gemini-users-need-to-know) and enables users to withdraw their staked ETH as well as optimize gas fees on the network for certain transactions. Despite concerns leading up to the event that the upgrade could bring [a wave of withdrawals](https://www.coindesk.com/markets/2023/04/05/ethereums-shanghai-upgrade-could-bring-24b-of-selling-pressure-to-ether-market/) causing a flood of ETH supply, the [price of ETH](https://www.gemini.com/prices/ether) held above the $1,900 USD mark and has since pushed higher to briefly break the $2,100 USD level for the first time in almost a year. 

As of Friday morning, [pending withdrawals](https://token.unlocks.app/ethereum-shanghai) of staked ETH from Ethereum surpassed 1.13M ETH (~$2.38bn USD). However, given there are limitations on [the amount of ETH that can be withdrawn](https://ethereum.org/en/staking/withdrawals/) at one time, the market is less likely to see supply hitting all at once.

As expected, Kraken made up [a large proportion](https://www.coindesk.com/markets/2023/04/13/kraken-leads-post-shanghai-unstaking-parade/) of initial ETH withdrawal requests following the upgrade. In February, [Kraken agreed to shut down](https://www.sec.gov/news/press-release/2023-25) its staking program in the U.S. and pay a $30M USD fine as part of a settlement with the SEC. Kraken confirmed before the Shapella upgrade that all the locked ETH on the platform from U.S. clients would [automatically enter the unstaking process](https://www.theblock.co/post/226292/kraken-set-to-unstake-more-than-1-billion-worth-of-eth-after-shapella-upgrade?utm_source=companies&utm_medium=rss) once the upgrade went live. On Friday morning, data from Nansen Query showed that ETH staked through Kraken made up [over 60% of the exit queue](https://query.nansen.ai/public/dashboards/Hk93n66vsO0uvycfui8ypF2xcpNhpraxfwX5AWZJ?org_slug=default&utm_campaign=shanghai_12Apr23&utm_medium=PR%20Team&utm_source=Media) of validators moving to unstake.

### Inflation Dips Again But Uncertainty Remains 

On Wednesday, U.S. inflation data showed that the headline consumer price index (CPI) [came in at 5% YoY for March](https://www.reuters.com/markets/currencies/dollar-dips-ahead-key-us-inflation-data-2023-04-12/), lower than [the expected 5.2%](https://www.axios.com/2023/04/11/what-to-watch-in-march-inflation-report), reaching its lowest level since May 2021. The core CPI [came in at 5.6% YoY](https://www.usatoday.com/story/money/economy/2023/04/12/cpi-inflation-data-today-live-updates/11607115002/) matching expectations.

[Equity markets](https://www.tradingview.com/symbols/SPX/?exchange=SP) and crypto initially rallied on the news, but prices pulled back later in the day after the Federal Open Market Committee (FOMC)’s March meeting minutes were released. 

The minutes revealed that [further rate hikes have not been ruled out](https://www.cnbc.com/2023/04/12/fed-expects-banking-crisis-to-cause-a-recession-this-year-minutes-show.html) and it is likely that the economy would slide into recession later this year as a result of the fallout from the U.S banking crisis. On Friday morning, market participants were [pricing in an 82% chance](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) of another 25bps rate hike in May, with many expecting that to be [the last increase](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) before a policy pivot and rate cuts by the end of the year.

### AI Buzz Enters Crypto World

[Render Network (RNDR)](https://www.gemini.com/prices/render-token), a provider of decentralized graphics processing unit (GPU) rendering out-performed this week, trading up ~30%. The surge in interest around AI, along with [increased demand and supply shortages in GPUs](https://www.insiderintelligence.com/content/big-cloud-server-shortage-could-slow-generative-ai-s-breakneck-pace) have brought more attention to RNDR this year. 

On Monday, Jules Urbach the founder and CEO of Render, [tweeted](https://twitter.com/JulesUrbach/status/1645464824678318081) “RNDR has a massive supply of high-density GPU power to power AI inference.” Render's ability to provide some of this much-needed supply, its integration with Apple earlier in the year, and the surging AI narrative could have played a role in RNDR gaining +300% since the start of the year.

-From the Gemini Trading Desk

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## Crypto Topic of the Week: Consensus Mechanisms — Proof of Work (PoW) and Proof of Stake (PoS)

Blockchain networks can vary considerably in their design, particularly with regard to the [consensus mechanisms](https://www.gemini.com/cryptopedia/glossary#consensus-mechanism) used to perform the essential task of verifying network data. The most common consensus mechanisms are __Proof of Work (PoW)__ and __Proof of Stake (PoS)__. Each design has different implications for the underlying blockchain’s security, accessibility, and energy consumption.

This week, amidst all the news around Ethereum staking and bitcoin (BTC)’s continued rise, we touch on one of the major differences between the two leading blockchains — consensus mechanisms — and explore PoW and PoS.

### Consensus Mechanisms in Crypto

A consensus mechanism is the process through which a distributed network reaches an agreement about information on the network — for example, whether transactions are valid and in what order they occur. Consensus mechanisms also play a key role in securing blockchain networks.

Most public blockchain networks today use processes referred to as [Proof of Work (PoW)](https://www.gemini.com/cryptopedia/glossary#proof-of-work-po-w) or [Proof of Stake (PoS)](https://www.gemini.com/cryptopedia/glossary#proof-of-stake-po-s) to provide consensus. 

### Proof-of-Work (PoW) Blockchains

The PoW consensus mechanism was popularized first by [Bitcoin](https://www.gemini.com/cryptopedia/how-does-bitcoin-work-blockchain-halving), and has played a foundational role in the crypto ecosystem. 

__How PoW blockchains work.__ Among the defining components of PoW systems are [miners](https://www.gemini.com/cryptopedia/glossary#miner) and the energy they use to make calculations that verify transactions. Miners operate computer hardware to run network [nodes](https://www.gemini.com/cryptopedia/masternode-dash-bitcoin-node) that employ computational power to algorithmically solve mathematical puzzles called proofs of work. 

The miner who solves the puzzle first confirms the most recent block of transactions on the blockchain, and broadcasts the new block to all other nodes. Other nodes confirm the accuracy of the block and add it to their copy of the blockchain, building a verifiable record of network data. This verification process represents consensus, and only once this data is confirmed can a new block be added to the network. 

Miners receive newly minted crypto, the [block reward](https://www.gemini.com/cryptopedia/glossary#block-reward), (in the case of Bitcoin, they receive BTC) for being the first to validate a new block of data and add it to the PoW blockchain.

Despite some limitations related to speed and [scalability](https://www.gemini.com/cryptopedia/glossary#scalability), PoW blockchains have historically provided strong security, while maintaining meaningful decentralization. Since PoW systems are distributed, it is usually prohibitively expensive for a malicious actor to take over the blockchain by controlling the majority of computing power on the network. The hardware, electricity, and computational costs are typically too high to surmount.

[Learn more about how PoW plays into network security here](https://www.gemini.com/cryptopedia/how-does-bitcoin-mining-work). 

### Proof-of-Stake (PoS) Blockchains

PoS has been in the news recently, with Ethereum’s transition from PoW to PoS being followed by various high-profile network upgrades, including Shapella this week.

Current industry-leading blockchains that use PoS in whole or in part include [Polkadot](https://www.gemini.com/prices/polkadot), [Avalanche](https://www.gemini.com/prices/avalanche), [Cardano](https://www.gemini.com/cryptopedia/cardano-ada-staking-blockchain), [Cosmos](https://www.gemini.com/prices/cosmos), [Solana](https://www.gemini.com/prices/solana), and [Ethereum](https://www.gemini.com/prices/ether).

__How PoS blockchains work.__ Instead of miners validating transactions, PoS blockchains use [validators](https://www.gemini.com/cryptopedia/glossary#validator). Validators are network node operators that validate data, similarly to PoW systems, but without the energy-intensive computational process to earn the right to validate. 

Instead of working to solve proofs of work, validators “[stake](https://www.gemini.com/cryptopedia/staking-rewards-pos-blockchains)” a blockchain’s native tokens in a bid to become eligible for selection as a validator node. A prospective validator on a PoS blockchain will essentially stake crypto tokens to serve as [collateral](https://www.gemini.com/cryptopedia/glossary#collateral). When it comes time to validate data held in a transaction block, the PoS system randomly selects a validator to confirm the data. 

When the block is confirmed, that validator is typically rewarded with network transaction fees, and the process begins with a new block.

[Learn about the variety of different PoS consensus mechanisms here](https://www.gemini.com/cryptopedia/proof-of-stake-delegated-proof-of-stake-consensus-mechanism). 

PoS blockchains keep blockchain networks secure and validators honest by requiring validators to stake their tokens. If validators act maliciously or incompetently, they may lose their staked tokens and access to the network through a process typically called “[slashing](https://www.gemini.com/cryptopedia/glossary#slashing).” This incentive structure ensures that validators have more to gain from being an honest actor than by breaking the rules.

The barrier to entry to PoS blockchains for validators is arguably lower than with PoW for miners, though a sufficient amount of crypto to stake is still required for PoS validators. 

Innovation is a constant in the crypto industry, and so it’s no surprise that various other consensus mechanisms have been developed beyond PoW and PoS. Explore the [variety of different](https://www.gemini.com/cryptopedia/blockchain-consensus-mechanism-types-of-algorithm) blockchain consensus mechanisms here. 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, April 14, 2023

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss the Ethereum Shanghai and Capella (Shapella) upgrades.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers This Week__</a> 
<a href="#What Happened This Week" target="">__Crypto News: What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week: Ethereum Shapella Upgrade__</a>

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Movers This Week (7D)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬇️ 1.90% | $27,960
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 1.70% | $1,860
---
[Somnium Space (CUBE) Price](https://www.gemini.com/prices/somnium-space) | ⬆️ 75.40% | $1.923
---
[Injective (INJ) Price](https://www.gemini.com/prices/injective) | ⬆️ 21.10% | $5.710
---
[Enjin Coin (ENJ) Price](https://www.gemini.com/prices/enjin) | ⬆️ 16.70% | $0.487
---

---

### Crypto prices as of Friday, April 7, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). 

<a href="https://exchange.gemini.com/register" class="anchorBtn" >Sign up</a>
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## Crypto News: What Happened This Week?

### Takeaways 

The crypto industry narrative shifted back toward Ethereum this week __as we approach the highly-anticipated Shapella hard fork__ with [ether (ETH)](https://www.gemini.com/prices/ether) reaching an eight-month high. ETH briefly broke out of its recent trading range to above $1,900 USD. The [ETHBTC](https://www.tradingview.com/symbols/ETHBTC/) pair rallied to ~0.068 earlier this week from the 2023 lows of ~0.063 on March 16. [Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) nevertheless showed continued resilience, and Arbitrum had a rocky start.

### Crypto prices remain steady despite continued economic pressure

[Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) and cryptos in general remained resilient despite continued economic headwinds including the [surprise cut in oil production](https://www.reuters.com/business/energy/sarabia-other-opec-producers-announce-voluntary-oil-output-cuts-2023-04-02/) from OPEC+ and U.S. job openings [dropping below 10 million](https://www.cbsnews.com/news/job-openings-and-labor-turnover-survey-jolts-9-9-million-february-2023/) for the first time since May 2021.

In traditional markets, [10-year treasury yields](https://www.tradingview.com/symbols/TVC-US10Y/) fell to ~3.26% on Thursday, the lowest level since September 2022, as the [S&P 500](https://www.tradingview.com/symbols/SPX/?exchange=SP) was largely flat week-over-week. The U.S. jobs market slowed somewhat in March, [adding 236k jobs](https://www.cnbc.com/2023/04/07/jobs-report-march-2023.html) compared to 472k jobs added in January and 326K in February, while the unemployment rate fell to 3.5%.

### A shift in the crypto narrative - Ethereum

In the build up to [Ethereum's Shapella network upgrade](https://blog.ethereum.org/2023/03/28/shapella-mainnet-announcement), which is set to take place on April 12th, [ETH](https://www.gemini.com/prices/ether) has seen increased interest and strong price appreciation. Despite fears that the upgrade [could bring a wave of selling pressure](https://www.coindesk.com/markets/2023/04/05/ethereums-shanghai-upgrade-could-bring-24b-of-selling-pressure-to-ether-market/) as stakers are finally able to freely withdraw their staked ETH, prices rose to the highest level since August 2022, touching $1,940 USD on Wednesday. 

ETH also performed strongly against BTC this week, with the [ETHBTC](https://www.tradingview.com/symbols/ETHBTC/) pair rising from ~0.063 at the start of the week before hitting resistance at ~0.068. Adding to that momentum, [open interest in ETH futures](https://www.theblock.co/data/crypto-markets/futures/aggregated-open-interest-of-ethereum-futures-daily) increased to a new 2023 high of ~$6.22B USD across exchanges.

### Bitcoin shows continued resilience

For the third straight week [BTC](https://www.gemini.com/prices/bitcoin) price action has been concentrated between the ~$27.5k USD and ~$28.5k USD levels, testing both support and resistance again throughout the past week. 

The biggest price move this week came on Monday after a prominent figure in the crypto community (@cobie) [tweeted an encrypted message](https://cryptoslate.com/cobie-says-interpol-rumor-about-cz-of-binance-was-accidentally-leaked/) using the SHA-256 hash function. The idea behind this sort of tweet is to retrospectively reveal that they knew about the news in advance (if it turns out to be true) without having any impact on the market. However, the message was exposed early and read “Interpol Red Notice for CZ”, suggesting an international law enforcement request to detain him. 

This caused some panic in the market, perhaps enhanced by Binance and CZ [being sued by the CFTC last week](https://www.cftc.gov/PressRoom/PressReleases/8680-23). BTC saw a sudden ~$1,000 USD drop from ~$28.2k USD to ~$27.2k USD as investors digested the news, but quickly bounced back above ~$28k USD as it became apparent that the rumor could not be verified.

### Elon Musk briefly replaces Twitter bird with Dogecoin dog 

In altcoin news, [DOGE](https://www.gemini.com/prices/dogecoin) was a strong performer this week after [Twitter](https://twitter.com/home) unexpectedly [changed the company’s logo](https://www.barrons.com/articles/dogecoin-price-new-twitter-logo-elon-musk-33f419c3) to the Dogecoin symbol on some parts of their web application. The price of DOGE immediately rallied higher, with the price jumping over 30%, briefly trading above $0.10 USD and becoming one of the top trending topics on Twitter. 

Although it is well known that Twitter CEO, Elon Musk, is a big fan of the Doge meme, it is unclear if there is any motive or reason behind the change. Musk tweeted [“As promised”](https://twitter.com/elonmusk/status/1642976364080041984) and shared a screenshot of a Twitter exchange back in March 2022, where he joked about buying Twitter and changing the logo. On Thursday, the Doge meme was removed as the logo on Twitter, causing the price of DOGE to fall immediately after. 

### Arbitrum (ARB)’s first protocol proposal fails

Following the long awaited [airdrop of its ARB governance token](https://www.coindesk.com/tech/2023/03/23/arbitrum-users-claim-42m-arb-tokens-in-first-hour-of-airdrop/) at the end of March, Arbitrum’s first attempt at a proposal (AIP-1) [did not go smoothly](https://cointelegraph.com/news/arbitrum-to-break-up-governance-votes-after-community-backlash). The community hit back at the proposal which included giving the Arbitrum Foundation control of 750 million ARB tokens for special grants and operational costs, with ARB holders increasingly frustrated as the Foundation began using the tokens before the vote had even occurred. 

The Arbitrum Foundation [released a statement](https://forum.arbitrum.foundation/t/clarity-around-the-ratification-of-aip-1/12864) explaining that they believe the negative sentiment was due to confusion among the community around AIP-1 being a ratification and not a request. As a result of the backlash new proposals have now been posted, split between [AIP-1.1](https://forum.arbitrum.foundation/t/proposal-aip-1-1-lockup-budget-transparency/13360) — covering a smart contract lock up schedule, spending, budget, and transparency, and [AIP-1.2](https://forum.arbitrum.foundation/t/proposal-aip-1-2-foundation-and-dao-governance/13362) — lowering the proposal threshold from 5 million to 1 million ARB.

Following the community uproar, the [price of ARB](https://coinmarketcap.com/currencies/arbitrum/) dropped from above $1.40 USD at the end of March to around $1.10 USD. It has since climbed back to ~$1.20 USD. 

-From the Gemini Trading Desk

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Topic of the Week: Ethereum Shapella Upgrade

Next week is a big week for the Ethereum ecosystem. On April 12, 2023, the Shanghai and Capella upgrades, coined “Shapella,” [are expected to be completed](https://blog.ethereum.org/2023/03/28/shapella-mainnet-announcement). Following these upgrades, __ether (ETH) staked on the Ethereum Network will be available for unstaking after having been locked on-chain__. This week, we touch on how Ethereum got to this point and what these upgrades mean for the future of the Ethereum ecosystem.

### From the Merge to Shapella

[The Merge](https://www.gemini.com/blog/the-ethereum-merge-what-gemini-users-need-to-know), which occurred in mid-September, was among the most consequential Ethereum Network upgrades in its history. The upgrade codified Ethereum’s move to [Proof-of-Stake (PoS)](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Stake%20(PoS)) from its previous [Proof-of-Work (PoW)](https://www.gemini.com/cryptopedia/search?query=Proof%20of%20Work%20(PoW)) consensus mechanism.

Following years of planning, and numerous test merges, Ethereum merged its execution layer (Mainnet) with the Beacon Chain, its parallel PoS system. The Merge made Ethereum more scalable, secure, and sustainable, [with a more than 99.9% reduction in energy consumption](https://cointelegraph.com/news/the-merge-brings-down-ethereum-s-network-power-consumption-by-over-99-9).

Following the Merge, all ETH staked on the new Ethereum Beacon Chain had been locked. While users continued to earn staking rewards throughout this period on their staked crypto, they had been unable to unstake their funds. That is now set to change with the coming Shapella upgrade. 

### Ethereum’s execution and consensus layers

To better understand what Shapella will accomplish, a quick primer on the layers that comprise the Ethereum Network is helpful. Following the Merge, there are two main layers to the Ethereum Network: the execution layer and the consensus layer, [which run in parallel and interact with each other](https://ethereum.org/en/developers/docs/networking-layer/#consensus-layer). 

[__The execution layer__](https://ethereum.org/en/developers/docs/nodes-and-clients/) is responsible for “executing” new transactions within the Ethereum Virtual Machine (EVM), and ensuring that the Ethereum database is consistently up-to-date. This layer [houses the smart contracts](https://www.coindesk.com/tech/2023/03/02/shanghai-capella-shapella-how-ethereum-devs-now-refer-to-upcoming-upgrade/), which are the building blocks of the myriad DeFi applications built on the Ethereum Network. [__The consensus layer__](https://ethereum.org/en/developers/docs/nodes-and-clients/), also known as the Beacon Chain, is responsible for implementing the PoS consensus algorithm. This ensures that the Ethereum Network operates securely and efficiently, and achieves consensus on the data sent from the execution layer. 

This is but a brief overview of these layers and how they interact. For an in depth explanation, [you can explore the Ethereum website](https://ethereum.org/en/developers/docs/networking-layer/). 

### What will the Shapella upgrade accomplish?

As mentioned above, Shapella is an unofficial portmanteau of Shanghai and Capella coined by Ethereum core developers. While most commentators have been commonly referring to the Shanghai upgrade, both upgrades will complement each other to bring the Ethereum Network to its next phase of development. The Shanghai and Capella upgrades [will impact the execution layer and consensus layer](https://blog.ethereum.org/2023/03/28/shapella-mainnet-announcement), respectively, and are [planned to occur simultaneously](https://consensys.net/shanghai-capella-upgrade/). 

The Shapella upgrade consists of a variety of individual upgrades. __The most notable one will allow ETH stakers to unstake their ETH, a functionality that has been long-awaited by the crypto community.__ The Ethereum Network had required ETH to be locked up in nodes to ensure the smooth transition as the blockchain migrated from PoW to PoS. With the upcoming upgrade, stakers will have the option to move their ETH to an unencumbered state, potentially introducing additional supply to the market. 

[Here is more information from Ethereum on ETH withdrawals following the Shapella upgrade.](https://ethereum.org/en/staking/withdrawals/)

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Weekly Market Update - Friday, April 7, 2023

Transparency is central to trust in the crypto industry. We built [the Gemini Trust Center](https://www.gemini.com/trust-center) to lean in on transparency, offering users visibility into the funds we hold on the Gemini platform and on users’ behalf. 

Today, we’re pleased to highlight more details on the reserves backing [Gemini dollar (GUSD)](https://www.gemini.com/dollar), our U.S. dollar-backed stablecoin. On the Trust Center, we now offer a full breakdown of the U.S. Treasury Obligations backing GUSD, __including CUSIP numbers, maturity dates, weighted average maturity, and total market value of funds__.
![Blog GUSD](//images.ctfassets.net/jg6lo9a2ukvr/3AaqM7Tz7YWpvGMSjDvoyF/069355f230846d28e912b724396e1786/Blog_GUSD.png)

## All Treasury Obligations Backing GUSD Are Short-Term (< 3 Months)

Gemini Trust Company, LLC is a fiduciary and qualified custodian under the New York Banking Law and is chartered by the New York State Department of Financial Services (NYDFS) as a limited purpose trust company. As such, GUSD has also been regulated by NYDFS since it was first minted in 2018, making it one of the world’s first regulated stablecoins. 

__To provide 24/7 USD to GUSD conversions and vice versa, we ensure redeemability, segregation of reserves from proprietary assets, and reserve transparency.__

Further, to minimize “duration risk” on our portfolio in the current interest rate environment, we only hold Treasury Bills, as opposed to Notes or Bonds. Treasury Bills, or T-Bills, are short-term obligations of the U.S. Government that, by definition, mature in one year or less. Importantly, __we further restrict the maturity on any individual T-Bill position to a maximum of three months [in accordance with NYDFS guidance](https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220608_issuance_stablecoins)__.

## GUSD Is Backed By Highly Liquid and Diversified Assets

Gemini ensures that GUSD is backed by cash and cash equivalents on a 1:1 basis, and these reserves are attested to by an independent registered accounting firm on a monthly basis and are made publicly available. [You can view GUSD attestations here](https://www.gemini.com/dollar). 

To ensure such reliability, we carefully construct the GUSD reserve with low risk assets, including T-Bills, government money-market funds, and cash deposits at FDIC-insured, regulated banks. These types of assets are generally understood to be among the safest investments. 

The composition of assets that are eligible to be part of the GUSD reserve is determined by Gemini in agreement with the NYDFS to ensure that these reserves are at all times maintained only in safe and liquid assets. In addition, the NYDFS oversees the establishment and maintenance of the reserves backing GUSD. 

You can view a regularly updated breakdown of the assets backing GUSD [on our Trust Center](https://www.gemini.com/trust-center).

In short, __our reserve portfolio is intended to maximize safety and liquidity__. Publishing our real-time holdings is a way to hold ourselves accountable to our users and our regulators. 

We will continue to lean in on transparency across our product suite as we move forward on our mission to unlock the next era of financial, creative, and personal freedom.

Onward and Upward.

Team Gemini

Adding More Transparency to the Reserves Backing Gemini Dollar (GUSD)

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss smart contracts.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers This Week__</a> 
<a href="#What Happened This Week" target="">__What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week - Smart Contracts__</a>

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Movers This Week (7D)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 1.22% | $28,411
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 2.22% | $1,829
---
[Artificial Liquid Intelligence (ALI) Price](https://www.gemini.com/prices/alethea-artificial-liquid-intelligence-token) | ⬇️ 20.50% | $0.0357
---
[Lido DAO (LDO) Price](https://www.gemini.com/prices/lido-dao-token) | ⬆️ 15% | $2.472
---
[Rally (RLY) Price](https://www.gemini.com/prices/Rally) | ⬇️ 14.40% | $0.0129
---

---

### Crypto prices as of Friday, March 31, 2023, at 11:50am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). 

__New to Gemini?__
<a href="https://exchange.gemini.com/register" class="anchorBtn" >Sign up</a>
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto News: What Happened This Week?

__Takeaways:__ The CFTC sued Binance, alleging, among other claims, that the world’s leading crypto exchange illegally offered derivatives to U.S. persons. The news came on the heels of Coinbase disclosing that the SEC is looking into securities violations related to cryptos listed on the exchange. Despite these actions, [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) and [ether (ETH)](https://www.gemini.com/prices/ether) prices showed resilience throughout the week, regrouping just above the $28k USD and $1,800 USD ranges, respectively. Ethereum was also in the news, with the upcoming Shapella upgrades set for April 12, 2023. 

__CFTC Takes on Binance:__ The U.S. regulators announced further enforcement actions against companies operating in the crypto market this week. [The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit](https://www.cftc.gov/PressRoom/PressReleases/8680-23) against the world's largest cryptocurrency exchange by market volume, Binance, along with its founder, Changpeng Zhao, and former Chief Compliance Officer, Samuel Lim. 

The CFTC alleges that Binance “offered and executed commodity derivatives transactions to and for U.S. persons,” in violation of U.S laws. The CFTC has also highlighted an ineffective compliance program and how employees and customers were instructed to “circumvent compliance controls.”1

[Zhao responded to the filing](https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282) saying that the allegations “contain an incomplete recitation of facts” and that Binance “will only be able to give full responses in due time.”2 

__Crypto and Equity Prices Show Resilience:__ Despite the turmoil and events of the past month, stocks and crypto have shown strong resilience and are set to end the quarter in positive territory. 

Following the announcement of the Binance lawsuit, [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) immediately broke lower. BTC dropped from the ~$28k USD level it had been consolidating at for the past week to ~$26.5k USD, before returning to the ~$28k USD level as investors digested the news. The [S&P 500](https://www.tradingview.com/symbols/SPX/?exchange=SP) is up ~6% this year, [Nasdaq](https://www.tradingview.com/symbols/NASDAQ-NDX/) is trading up ~18% this year, while BTC and [ether (ETH)](https://www.gemini.com/prices/ether) are set to end the quarter among the best-performing assets, up ~70% and ~50% year-to-date, respectively.

__Regulators Continue on the Crypto Offensive:__ The CFTC’s lawsuit against Binance comes on the heels of last week’s announcement that [the Securities and Exchange Commission (SEC) issued a Wells notice to Coinbase](https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal), a recommendation from SEC staff for an action against the crypto exchange alleging that its exchange and staking services violate securities laws. 

That same day, [the SEC sued Justin Sun](https://www.sec.gov/news/press-release/2023-59), the founder of Tron, for the unregistered sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT), and manipulating the secondary market for TRX through wash trading, along with other charges.

__Ethereum Tries To Gain Ground on Bitcoin With Shapella Upgrades Coming Soon:__ [Ether (ETH)](https://www.gemini.com/prices/ether) rose from a low of ~0.062 on the [ETHBTC pair](https://www.tradingview.com/symbols/ETHBTC/) to trade near ~0.065 on Friday. 

The gains came as the industry received an [update on Ethereum’s Shanghai and Capella upgrades](https://blog.ethereum.org/2023/03/28/shapella-mainnet-announcement) (named Shapella), which have now been confirmed for April 12, 2023. The most anticipated aspect of the upgrades is the ability for stakers to withdraw their staked ETH from the Beacon Chain to the execution layer. 

Tokens related to liquid staking protocols on Ethereum such as [Lido DAO (LDO)](https://www.gemini.com/prices/lido-dao-token), [Rocket Pool (RPL)](https://coinmarketcap.com/currencies/rocket-pool/), and [Frax Share (FXS)](https://www.gemini.com/prices/frax-share) were among the biggest outperformers this week on the back of the Ethereum upgrade news.

__CFTC Chair Reiterates That Ether (ETH) Is a Commodity:__ [Ether (ETH)](https://www.gemini.com/prices/ether) received another boost this week as [the CFTC lawsuit against Binance](https://www.cftc.gov/PressRoom/PressReleases/8680-23) stated that several tokens, including ETH, are commodities. CFTC chairman Rostin Behnam further reiterated his belief that ETH is a commodity [at a congressional hearing on Tuesday](https://www.coindesk.com/policy/2023/03/28/us-cftc-chief-behnam-reinforces-view-of-ether-as-commodity/). The assertion is positive news for ETH which has previously faced scrutiny on whether it should be classified as a security, notably from SEC Chair Gary Gensler.

-From the Gemini Trading Desk

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Topic of the Week — Smart Contracts

[Smart contracts](https://www.gemini.com/cryptopedia/crypto-smart-contracts-explained) are one of the key components of many [blockchain-based](https://www.gemini.com/cryptopedia/blockchain-technology-explained) ecosystems, and play a foundational role in application-focused blockchains like [Ethereum](https://www.gemini.com/cryptopedia/ethereum-smart-contracts-tokens-use-cases). With Ethereum increasingly in the news, this week we take a dive into what smart contracts are and the role they play in the crypto ecosystem.

__What is a smart contract?__ A smart contract is a self-executing code or protocol that carries out a set of instructions that is verified on the blockchain. Like traditional contracts, [smart contracts](https://www.gemini.com/cryptopedia/glossary#smart-contract) are agreements between two or more parties where one party offers something of value to another and the offer is accepted. 

The major differentiator is that a smart contract is run by self-executing code that carries out the terms of the agreement. This code is sent to an address on a [blockchain](https://www.gemini.com/cryptopedia/glossary#blockchain) as a transaction, where it is verified through that blockchain’s [consensus mechanism](https://www.gemini.com/cryptopedia/glossary#consensus-mechanism). Once the transaction is included in a [block](https://www.gemini.com/cryptopedia/glossary#block), the smart contract is initiated and is typically irreversible.

Smart contracts minimize, or remove, the need for intermediaries and contract enforcement. This greatly reduces cost and simplifies the contract negotiation process. With a smart contract, the code defines the mechanisms of the transaction and is the final arbiter of the terms. 

These functionalities have allowed smart contracts to become the building blocks of an entire ecosystem of [decentralized applications (dApps)](https://www.gemini.com/cryptopedia/decentralized-applications-defi-dapps), and represent a major focal point of blockchain development in general.

__Smart contracts and Ethereum.__ The idea of smart contracts predates blockchain and cryptocurrency, being first proposed by developer Nick Szabo in 1994. Although the [launch of Bitcoin in 2009](https://www.gemini.com/cryptopedia/bitcoin-satoshi-nakamoto-genesis) made smart contracts a technical reality, it was the [Ethereum](https://www.gemini.com/cryptopedia/ethereum-blockchain-smart-contracts-dapps) protocol that elevated the tech to a foundational element of blockchain.

While simple smart contracts — like [multi-signature wallets](https://www.gemini.com/cryptopedia/glossary#multi-signature-multi-sig-wallet) — are possible on Bitcoin, the more versatile and complex smart contracts widely discussed and used today were first generated in Ethereum’s fast-proliferating ecosystem of dApps that make up the core of the [decentralized finance (DeFi)](https://www.gemini.com/cryptopedia/what-is-defi-crypto-decentralized-finance-projects) ecosystem. 

Many other projects are building [Layer-2 solutions](https://www.gemini.com/cryptopedia/glossary#layer-2-scaling-solution) to improve upon Ethereum’s capacity for execution of smart contracts. These projects are adding features such as increased throughput, lower transaction costs, and privacy enhancements. There are also several blockchains that are assertively expanding smart contract use cases and market share, and further developing the technology.

__What are some smart contract use cases?__ A solitary smart contract can only be used for one transaction type: If a specific process occurs, it is followed by another related process. But, most dApps work by bundling smart contracts together to create sophisticated functionality. There are thousands of dApps across the various blockchain networks, ranging from finance to [gaming](https://www.gemini.com/cryptopedia/nft-blockchain-gaming-industry), exchanges, and media — and they all use smart contracts in different ways.

In the DeFi sector, smart contracts allow for interest on deposits and loans, and trading and investing, typically only available through traditional financial services organizations. Further, smart contracts can be set up for trading, inventory tracking, [prediction markets](https://www.gemini.com/cryptopedia/glossary#prediction-market) and betting, [digital identity](https://www.gemini.com/cryptopedia/glossary#digital-identity), legal contracts, online auctions, automated mortgages, and an ever-growing number of use cases.

[__Read more about real-world smart contract use cases here__](https://www.gemini.com/cryptopedia/smart-contract-examples-smart-contract-use-cases). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

---

1https://www.cftc.gov/PressRoom/PressReleases/8680-23

 2https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282

Weekly Market Update - Friday, March 31, 2023

- We’ve updated the Gemini Mobile App to include candlestick mode when exploring crypto markets
- Hide balances on your Homepage to further enhance your privacy when on the go
- Hide dust from your Portfolio and get a clearer view of your crypto portfolio

At Gemini, we’re driven to improve user experiences across our platform for all types of crypto traders and investors. The Gemini Mobile App allows users to view their portfolios and trade crypto on the go, and __we’re thrilled to showcase a few subtle but important improvements to our mobile app__. 

We’ve updated our mobile app to help you better understand market movements, further protect your privacy, and provide you a clearer overview of your account. __Make sure to update your Gemini Mobile App to the most recent version to use these new features.__
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)
## Candlestick Mode
![Blog Mobile app updates candlesticks](//images.ctfassets.net/jg6lo9a2ukvr/1873ey816HJn1hkZj8LbmI/62c9d55303477f2c55c9b109b1ce0a9f/Blog_Mobile_app_updates_candlesticks.png)

When researching crypto markets on the Gemini Mobile App, __you can now toggle between the traditional line graph mode and candlestick mode__. With candlestick mode, you can get a better understanding of the spectrum of trades within the timeframe you’ve selected. 

__Tap into a crypto you want to explore and tap the toggle button located at the top right corner of your mobile screen to switch between modes.__
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## Homepage Balance Privacy Mode
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In today's digital world, privacy is more important than ever. At Gemini, we take your privacy seriously and want to make sure you feel secure when using our mobile app. To enhance your privacy, __you now have the option to hide crypto and fiat balances from your Homepage when using the app__. 

If you want to catch up on crypto movements or explore the content on our app when you’re in a crowded place, you can now hide the total value of funds you hold on Gemini when using our app. 

__Tap the profile icon at the top right of your screen and scroll down to “Portfolio display.” Toggle “Hide balances on Home” to ensure that your sensitive financial information is only visible to you.__
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## Hide Dust on Your Account
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At Gemini, you can buy a variety of different cryptos including [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin), [ether (ETH)](https://www.gemini.com/prices/ether), and dozens of DeFi tokens. Depending on the market value of a particular crypto, you may end up with minimal amounts of crypto in your account balance, also known as “dust.” For balances that are worth less than 0.01 notional in your default fiat currency, you can now hide those amounts from your Portfolio tab so you can better understand the crypto for which you own a meaningful amount. 

__To hide your dust, tap the icon at the top right of your screen and scroll down to “Portfolio display.” Toggle “Hide dust” to enable this feature.__ You’ll always be able to see any dust you have in your account by disabling this feature. 

As we unlock the next era of financial, creative, and personal freedom, we will continue to improve the Gemini Mobile App to ensure you have the most seamless and secure crypto experience when on the go. 

Onward and Upward!

Team Gemini

We’ve Updated the Gemini Mobile App, Here’s What’s New

*Welcome to our Weekly Market Update.** *Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we discuss interest rates.*

<a href="#Crypto Movers This Week" target="">__Crypto Movers This Week__</a> 
<a href="#What Happened This Week" target="">__What Happened This Week?__</a> 
<a href="#Crypto Topic of the Week" target="">__Crypto Topic of the Week - Interest Rates__</a>

![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## Crypto Movers This Week (7D)

[Bitcoin (BTC) Price](https://www.gemini.com/prices/bitcoin) | ⬆️ 6.10% | $28,008
---
[Ether (ETH) Price](https://www.gemini.com/prices/ether) | ⬆️ 2.86% | $1,766
---
[Mask (MASK) Price](https://www.gemini.com/prices/mask) | ⬆️ 31.80% | $5.915
---
[Immutable X (IMX) Price](https://www.gemini.com/prices/immutable-x) | ⬇️ 14.40% | $1.222
---
[Livepeer (LPT) Price](https://www.gemini.com/prices/livepeer) | ⬆️ 12.20% | $6.908
---
Crypto prices as of Friday, March 24, 2023, at 11:45am ET. Percentages reflect trends over the past seven days. [Check out the latest crypto prices here](https://www.gemini.com/prices). 

New to Gemini? [Sign up for an account here](https://exchange.gemini.com/register).
![Blog Inline 03](//images.ctfassets.net/jg6lo9a2ukvr/6NjikZ3DzdLHZdqBx8G1oG/87208c48dc03f7b455a92a1085b1de34/Blog_Inline_03.png)



## What Happened This Week?

__Takeaways:__ Banking woes continued as UBS bought rival Swiss bank Credit Suisse to stem a brewing crisis. In a coordinated action, the Federal Reserve and other central banks increased liquidity in the U.S. dollar funding markets, resulting in a boost for bitcoin (BTC) and ether (ETH) prices, which both hit 2023 highs. The Federal Reserve announced a rate increase of 25 basis points (bps), but signaled a coming pause.

__UBS Buys Credit Suisse in Bid to Avoid Further Bank Contagion:__ Following the collapse of Silvergate, Silicon Valley Bank (SVB), and Signature, this week brought further banking turmoil as Swiss bank UBS stepped in [to rescue its rival Credit Suisse for $3.25 billion USD](https://apnews.com/article/credit-suisse-ubs-bank-collapse-svb-swiss-1a06bc96cbca9be4fbfd20a8f008ab8f) in a bid to avoid further panic in global financial markets. The Swiss central bank is also set to provide support for the deal with a loan of 100 billion Swiss francs backed by a federal default guarantee to help support the deal. 

__Central Banks Join Forces to Increase U.S. Dollar Liquidity, Giving Crypto a Boost:__ The Fed, along with five other central banks, announced on Sunday, March 19, 2023, [coordinated action to boost liquidity](https://www.federalreserve.gov/newsevents/pressreleases/monetary20230319a.htm) in U.S. dollar funding markets. This marked an important shift in market conditions and signaled a possible end to the quantitative tightening which has been a major headwind throughout the past year. 

The news helped to push [bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) and [ether (ETH)](https://www.gemini.com/prices/ether) higher at the start of the week, both reaching new YTD highs of ~$28.9k USD and ~$1,846 USD respectively. Prices then consolidated in the build up to Wednesday’s highly-anticipated Federal Open Market Committee (FOMC) meeting, with interest rate expectations changing dramatically over the past few weeks.

__Fed Raises Rates Again, But Signals a Potential Pause:__ Despite the recent bank failures and growing concerns around the banking sector, [the Federal Reserve announced a 25 bps rate increase](https://www.axios.com/2023/03/22/fed-raises-rates-silicon-valley-bank) at the latest FOMC meeting on Wednesday, as they push ahead in their fight to tame inflation. The FOMC, however, signaled that rate increases may be coming to an end, depending largely on incoming data. [The latest Fed dot plot](https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-decline-ahead-of-rate-decision/card/dot-plot-shows-just-one-more-fed-rate-hike-in-2023-xWZikqw6cSiops1x9rVw), which outlines interest rate expectations from Fed officials, suggests only one more 25 bps hike is likely this year. 

Federal Reserve Chair Jerome Powell highlighted during a Wednesday news conference that the Fed had considered a pause in rates due to the recent banking crisis, but unanimously chose to raise rates given inflation data and the strength of the labor market. At the news conference, Powell stated “[if we need to raise rates higher, we will](https://www.youtube.com/watch?v=KNRg3Mkxhdo),” which markets received as more hawkish than expected in light of the recent stress across the banking sector. This led to all the major U.S. indices sliding lower into the close, and crypto prices pushing lower too.

__Bitcoin Takes Mild Dip Following Rate Increase, But Remains Strong:__ [Bitcoin (BTC)](https://www.gemini.com/prices/bitcoin) faced strong resistance throughout the week at the ~$28.4k USD level, before briefly touching below $27k USD following the Fed's latest policy decision. However, Bitcoin remains the main focus among crypto with [Bitcoin Dominance reaching another year-high](https://www.tradingview.com/symbols/BTC.D/) of 47.8%.

__XRP Has Strong Week, and Arbitrum Airdrops Token:__ In altcoin news, [XRP](https://www.tradingview.com/symbols/XRPUSD/) was among the biggest gainers this week, with its price increasing by over 20% at one point as investors grew more confident that [a ruling in the long-running court case](https://www.cnbc.com/2023/03/22/xrp-cryptocurrency-jumps-as-investors-hope-ripple-will-win-sec-case.html) between the SEC and Ripple would resolve in their favor, following a supplemental notice submitted by Ripple on Monday. The outcome of the case is being closely watched by many, as a positive result for Ripple could set a crucial precedent for crypto. 

Arbitrum, one of the largest Ethereum Layer 2s, with nearly $2 billion USD in total value locked (TVL), [launched a token airdrop on Thursday](https://www.coindesk.com/tech/2023/03/23/arbitrum-users-claim-42m-arb-tokens-in-first-hour-of-airdrop/), with 11.5% of the total supply going to eligible Arbitrum users and 1.1% to DAOs that operate on the Arbitrum ecosystem. The token will be used for governance relating to Arbitrum One and Arbitrum Nova.

-From the Gemini Trading Desk

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## Crypto Topic of the Week — Interest Rates

Interest rates can significantly impact the crypto and wider financial markets, as we’ve seen over the past months. As one of the most important monetary policy tools governments have at their disposal, this week, we provide a high-level overview of what interest rates are and why they matter. 

[__What are interest rates?__](https://www.gemini.com/cryptopedia/how-do-interest-rates-work-crypto-lending) Interest rates represent the cost of borrowing money, or the return lenders receive for lending money. Central banks, like the U.S. Federal Reserve, generally set target interest rates which influence rates throughout financial markets. Based on the number they set, lending institutions — commercial banks, credit unions, and the like — will calculate the interest rate they charge their customers. When setting their rates, lending institutions will also take other variables into consideration, such as a borrower's credit score. 

Interest rates are generally quoted as an annual percentage rate (APR) or annual percentage yield (APY). These reflect the rate that a lender charges a borrower for a consumer loan (APR), or the amount a consumer receives from a financial institution when storing their money in different vehicles (APY). Most industries pay close attention to interest rate changes, as they affect consumer and corporate debt, the health of financial markets, and the economy as a whole.

__Why do interest rates matter?__ As an important tool used by governments and central banks to influence economic activity, interest rates matter for a variety of reasons. We touch on some of the main impacts below.

__Borrowing and lending:__ The immediate impact of interest rates is on the cost of borrowing money, and the return on lending money, as explained above. When interest rates are low, borrowing is cheaper, potentially encouraging individuals and businesses to take out loans to invest or spend. Conversely, high interest rates often have the opposite effect, leading to less spending and lower demand.

__Consumer and business spending:__ Lowering interest rates, which we saw the Fed do throughout much of the early 2020s [in response to the economic impact of the COVID-19 pandemic](https://www.brookings.edu/research/fed-response-to-covid19/), can stimulate spending and boost economic activity. Keeping rates low for long periods of time, however, can increase inflation as more economic activity pushes prices higher. At a high level, this is the dynamic that the Fed has been dealing with over the past few months, [which has led them to quickly raise interest rates](https://www.nbcnews.com/business/economy/inflation-federal-reserve-bank-collapse-fears-rcna75736). 

__Investing:__ Interest rates can also play a role in investment decisions. Low interest rates often drive individuals and businesses to invest in assets like equities, and crypto, as the potential returns may be higher than other investments. This dynamic could be playing out in real time, as recent signals from the Fed that it may slow rate increases has been accompanied with equities and crypto running higher.

__Currency impacts:__ While this is certainly not an exhaustive list of how interest rates can impact financial markets, another final major impact they have is on the value of fiat currencies. Central banks set their national interest rates at different levels, depending on the economics of each. When a country's interest rates are higher than those of others, its currency may become more attractive to foreign investors seeking higher returns. This can lead to an increase in demand for the country's currency, driving up its value relative to other currencies.

[You can read more about interest rates here](https://www.gemini.com/cryptopedia/how-do-interest-rates-work-crypto-lending). 

See you next week. Onward and Upward!

Team Gemini

**This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.*

Bitcoin (BTC) and ether (ETH) hit 2023 highs this week, as the Fed raised interest rates but signaled a coming pause given continued banking woes.

Weekly Market Update | March 24, 2023 | Crypto Prices, Market News, and Crypto Education

Weekly Market Update - Friday, March 24, 2023

We are thrilled to partner with the iconic Oxford-Cambridge Boat Race for the third year running. [The Gemini Boat Race](https://www.theboatrace.org/), between perennial rivals University of Oxford and University of Cambridge, will take place on Sunday, March 26, 2023, on the River Thames in London. [You can watch the race here](https://www.theboatrace.org/). 

Rowing is deeply ingrained in our founders’ DNA. In 2010, Tyler and Cameron Winklevoss competed in the Oxford Blue Boat after competing at the 2008 Beijing Olympic Games. They drew upon the spirit of leadership and tenacity fostered by rowing when founding Gemini in 2014, and these values have underpinned our mission ever since. 

From the start, this has been a natural partnership for Gemini, and we are proud to be the first fintech company to serve as Principal Partner — following a long line of esteemed institutions. Our partnership, [which began in 2021](https://www.gemini.com/blog/introducing-the-gemini-boat-race-2021), has helped broaden the event’s impact by increasing access to rowing facilities and education, and has supported removing financial barriers that often prevent prospective athletes from participating in the sport of rowing.

Over the past three years, we are grateful to have helped over 900 young people learn to row. Through the Boat Race Fund, we’ve supported projects with London Youth Rowing in Leeds, Fulham Reach Boat Club, Behind Every Kick and Brixton Wings in London, Ely College in Cambridgeshire, Firhill Youth Project and Community Sports Hub in Glasgow, and Warrington Youth Rowing in Cheshire. We hope the young athletes who are part of these organizations will take lessons from their rowing experience into other aspects of their life.

It’s an honor and a privilege to play a part in ensuring the longevity of such a treasured sporting event. We wish the teams rowing this coming weekend the very best of luck, and we are delighted to continue supporting the amazing athletes competing this weekend.

Onward and Upward!

Team Gemini

Team Gemini