It’s all about custody

Gemini Exchange

 

You may have heard it said — if you don’t hold your private keys, you don’t hold your crypto.

 

It’s true. Just ask anyone who left their Bitcoin sitting on the Mt. Gox exchange when it collapsed.

 

It’s a prevalent problem in the crypto industry. Many would-be cryptocurrency investors simply do not want the hassle of securing their own crypto and would rather trust other entities to take care of it for them. It’s an ironic problem as crypto is a form of value that finally allows the user to not place trust in anyone but themselves. It seems that human nature just wants to trust, even when not needing to do so.

 

In an effort to appease the more traditional investor, the Gemini exchange, owned by the famed Winklevoss twins, is going about establishing itself as a trustworthy custodian of crypto. Accustomed to the comforts of insured and protected investments held in trust by a third party, larger-scale investors seem to find assurance in this simulation of the old-fashioned environment, whereby crypto assets can be held safely, now insured against loss by lending services firm Aon, according to Cointelegraph.

 

In conjunction with the recently added stable coin on Gemini which is pegged to the US dollar in value and is referred to simply as the Gemini coin, the Winklevoss twins are making a strong push for institutional acceptance. The addition of larger quantity block-trading and further steps to achieve future ETF approval are contributing to a growing aura of legitimacy around the Gemini exchange, as well as around the topic of cryptocurrency in general.

It is interesting to see such major steps in regulatory progress and market growth taking place despite predominantly bearish sentiment across the market. Major investments in entities like Coinbase, recently valued at $8 billion, and enormous valuations of crypto companies like the $12 billion Bitmain, show that a substantial amount of serious money is entering the market even as legacy investors continue to verbally downplay its potential.

 

Now, with the addition of insured custody of digital assets on the Gemini exchange, yet another step toward broader institutional acceptance and interest in crypto investment has been achieved. As more entities allow for this level of apparent security for traditional investors, the inevitable growth in cryptocurrency investment continues.

 

In the meantime, the old adage continues to ring true — if you don’t hold your private keys, you don’t hold your crypto. Hang on to it. More investment is coming.

 

CryptoMurmur Telegram Group

 

Source:

https://cointelegraph.com/news/winklevoss-gemini-crypto-exchange-secures-insurance-coverage-for-custodied-assets

Image: https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-cameron-tyler-winklevoss-cryptocurrency-shared-investment-key-cut-a8120301.html

 

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