QuadrigaCX Fiasco Prompts Winklevoss Brothers Advocacy Campaign

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Remember the news that beguiled cryptocurrency exchange company, QuadrigaCX CEO Gerald Cotten died, and took the whereabouts of more than $135 million with him to his supposed grave leaving thousands of its account holders without a way to recover their coins? The story made headlines of ridiculous proportions and raised too many questions regarding regulation and trust issues as far as cryptocurrency exchanges are operated, one of them being how one individual could be the sole custodian of important access logins and passwords.

When his wife swore an affidavit, she claimed that her deceased husband had all the logins and passwords to thousands of accounts encoded into his computer that could access millions of dollars in a curious case of being overly cautious about security issues after major attacks were launched against cryptocurrencies last year. It became very frustrating when even forensic experts were faced with limited access when they tried to decrypt the computer which severely compromised the company’s access to currency.

Needless to say that the news did not sit well with its thousands of its wallet holders who decried the exchange as a scam due to the unbelievable circumstances. Most crypto community members even questioned if the CEO was dead and called for class action lawsuits against the exchange, prompting the directors to issue a statement on January 31st. The statement alluded that the company was looking to the Nova Scotia court for creditor protection as they try to address the liquidity challenge and serve their customers. As at time of post, these efforts are still unsuccessful.

In the wake of the above events, Gemini founders, the Winklevoss twins have embarked on a campaign to call for regulation and review of the trust issues surrounding cryptocurrencies to avoid a situation such as that suffered by QuadrigaCX. They warned that in such a quickly evolving technology, users will keep losing vast amounts of investment due to lax and slow progress towards regulation.

At the same time, the advocated for their own crypto exchange company saying that the company is more user friendly and offers multi-level security account protection services, especially one major characteristic of blockchain technology is eliminating the third party trustees. Their case is not unfounded as the company is fully registered, compliant and as at the time of launch five years ago, they had the highest levels of reserves, which was a complete opposite from all other exchanges that followed the Bitcoin blueprint.  

Here is why the Winklevoss twins are confident that their crypto exchange is a better fit:

  • It allows for international bank transfers which is not provided by most cryptocurrency exchanges due to the risks involved.
  • Their customer support system is the best so far as they provide even minute details that customers may come up with and it is done in detail. They also allow customers and prospective customers submit their questions via email.
  • The exchange platform offers a two factor authentication 2FA that pushes ups the security of a users’ account.
  • Gemini holds vast amounts of Bitcoin and Ethereum in offline wallets and very little amounts online which largely reduces the ever present risk of an attack like that suffered by Coinbase and Quadriga. Also, it allows them to maintain high liquidity.
  • The exchange does not offer a minimum investments but encourages account holders to invest whatever amount they are comfortable with at their own discretion and increase the amount over time.
  • It has an auctions feature, very much like the stock exchange auction, where large amounts of crypto-assets are traded in the short time. For the exchange to have this feature that is inherently very risky practice, can be banked on their confidence in their liquidity in the event of a crisis. So far they have been very successful.
  • The cryptocurrency exchange company functions in over 45 states in the US, with offices in Singapore, UK, Hong Kong, Canada and South Korea. And in its history since inception, the company has managed to grow this much without a single hacking incident which is pretty impressive.

The Winklevoss brothers in a statement yesterday said that regulation and security procedures will also allow the price of cryptocurrencies like Bitcoin and Ethereum, the top coins by market cap to increase. Kindly note that this article is not conclusive but due diligence is recommended for our subscribers before they can invest their money with Gemini.

 

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