Gemini’s stablecoin loses USD peg amid OKX delisting Gemini’s stablecoin loses USD peg amid OKX delisting
The number of active addresses holding GUSD has dropped to a 2020 low, while the stablecoin supply has dropped off in recent months.
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Updated: Jan. 31, 2023 at 7:37 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Gemini-backed stablecoin Gemini Dollar(GUSD) has lost its parity with the US Dollar, falling by 0.84% to $0.9851 in the last 24 hours, according to CryptoSlate’s data.
Available data shows that the stablecoin experienced sharp price swings over the past week, reminiscent of its run towards the end of last year.
The number of active addresses holding GUSD has dropped to a 2020 low, according to CryptoSlate research. GUSD’s supply has also fallen to around $607 million from a high of nearly $880 million within three months.
OKX delists GUSD
Crypto exchange OKX said it would be delisting the stablecoin on Feb. 1 by 8:00 am UTC, according to Jan. 31 statement.
The exchange said it was delisting the stablecoin based on users’ feedback and its delisting policy. OKX added that it “constantly monitors the performance of all listed projects and reviews their listing qualifications on a regular basis.”
Gemini troubles
Meanwhile, the stablecoin issuer is facing increased scrutiny after the New York Department of Financial Services (NYDFS) revealed it was investigating the exchange over its claims related to Federal Deposit Insurance Corporation (FDIC) coverage.
Some Gemini users said they were misled into believing that the exchange’s Earn product was also covered by FDIC insurance.
Besides, the exchange has been engaged in a public spat with the bankrupt crypto lender Genesis over its Earn product.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Gemini dollar (GUSD) combines the creditworthiness and price stability of the U.S.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.