Gemini, so far, has managed to maintain performance in the crypto arena despite facing high cost burdens. The crypto exchange has done 2 rounds of shutdowns in the past year in an effort to reduce operating costs.
The crypto exchange's cash flow was also hit hard by problems with Genesis, which locked up about $900 million in client funds.
Gemini's partnership with Genesis on its Earn product has also drawn criticism from the SEC, which sued both platforms for alleged violations of securities laws. Things got worse when Gemini also lost its COO, Noah Perlman, who later became Binance's Chief Compliance Officer.
Although the dispute has allegedly been resolved, the customer's funds have yet to be settled. As part of the deal with Genesis, the Winklevoss twins will publicly provide up to $100 million in investment. However, the current cash injection is reportedly unrelated to the Genesis bailout fund.
Instead, funds coming from the Winklevoss Twins' personal fortune will be used for operating funds, according to an unnamed source.
The amount invested in these companies over the past quarter was approximately $2.4 billion. With external funding dwindling and stopgap measures in place Gemini failed to stem the bleeding. On that basis, the Winklevoss twins have taken steps to cover Gemini's cash reserves.
It is expected that the twins' decision to inject the fund may encourage other VC investors to help support Gemini until the current economic situation changes for the better.
