As we delve further into the era of digital transformation, many exchanges are taking innovative measures to ride the crypto wave and stay relevant in the ever-evolving blockchain market. Gemini, the crypto firm operated by the billionaire Winklevoss twins, is a case in point. With a proposed leaderboard contest in August, Gemini is strategically leveraging the engagement component of competition to foster trading on its derivatives exchange.
Per a Bloomberg report, the users wishing to partake in Gemini’s first-ever leaderboard competition must maintain a minimum balance of $250 throughout the contest. The Gemini Dollar (GUSD) stablecoin, presently the eighth-largest globally with a market cap of approximately $400 million, will be the funding choice for the contest.
Although the decision appears sensible considering Gemini’s pursuit to penetrate further into Asia and establish a non-American crypto derivatives platform, some perceive this as mere corporate play. The question arises whether such leaderboard contests are genuine attempts to incentivize crypto enthusiasts or mere baits to boost trading volume and profits, as Campbell Harvey, finance professor at Duke University, suggests.
Evidently, crypto exchanges such as Binance and Bybit have employed similar tactics, deriving significant traction from leaderboard competitions that engage regular as well as master traders. Ultimately, these gimmicks act as catalysts in amplifying the trade volume – a direct profit booster for exchanges.
Gemini’s expanding endeavors are not confined to just trading gimmicks. The company recently shared plans to escalate its activities in the Asia-Pacific (APAC) region, anticipating it to be the next crypto growth center. As part of this expansion, it aims to enlarge its Singapore-based crew and establish an engineering division in India.
Nonetheless, the road to expansion hasn’t been smooth for this US-based crypto firm. Regulatory hurdles have been a persisting concern following SEC’s allegations on Gemini’s Earn Program. The exchange, under the scanner for providing ‘unregistered’ securities offerings to retail investors, allegedly accumulated billions in crypto assets from numerous participants.
Thus, while the Winklevoss twins-run exchange is seeking broader horizons on the front end with competitive trading and geographical expansion, it simultaneously has to tackle critical regulatory challenges on the domestic front. In the volatile world of cryptocurrency, the question of who benefits the most from these innovations – the exchanges or the users – remains unanswered.
Source: Cryptonews
