Gemini Foundation Announces Trading Competition to Attract New Users Amid Declining Trading VolumeIn an effort to revitalize its trading volume and expand its global user base, the Gemini Foundation, a derivatives exchange founded by billionaire entrepreneurs Cameron and Tyler Winklevoss, is gearing up to launch its inaugural trading competition next month. As trading volumes have experienced a significant decline in recent times, the international crypto derivatives exchange aims to leverage the competition to attract new users to its platform and bolster its position in the competitive crypto market.
Gemini Leaderboard Competition to Track Top Crypto Traders
On August 1, 2023, Gemini will introduce the Gemini Leaderboard competition, which is set to track the performance of crypto traders on its international derivatives trading platform. The leaderboard will rank participants based on their trading success and reward top-performing traders accordingly. With the aim of engaging users and enhancing their trading experience, the competition will feature multiple events, each with distinct rules, objectives, and durations.
Participants in the competition will have the opportunity to win up to 250 GUSD (Gemini’s native stablecoin) daily, serving as a powerful incentive for traders to showcase their skills and achieve consistent profitability. However, it’s worth noting that the competition will be limited to traders outside the United States, the United Kingdom, and the European Union, due to regulatory considerations.
Participation Requirements and Duration
Traders interested in joining the Gemini Leaderboard competition must meet certain participation requirements. To be eligible, participants must fund their derivatives accounts with a minimum of 250 GUSD before the end of the month, with this amount being maintained throughout the competition’s duration. This requirement ensures that participants have sufficient capital to actively participate in the trading events.
The first competition is scheduled to conclude on August 31, 2023, giving traders ample time to demonstrate their trading prowess and secure their spot on the leaderboard. By imposing specific entry criteria and a defined timeframe, Gemini seeks to maintain a fair and competitive environment for all participants, fostering a sense of excitement and camaraderie within the crypto community.
Gemini’s Trading Volume Decline and Strategic Move Offshore
The decision to launch a trading competition comes at a critical juncture for Gemini, as its trading volume has experienced a substantial decline over the past year. According to data from CoinGecko, the exchange’s trading volume has plummeted by over 87%, dropping from $147 million to nearly $18 million at the time of writing. Despite this dip in trading activity, Gemini remains confident in its position within the crypto market, with self-reported proof of reserves valuing its holdings at $6.4 billion worth of crypto.
The decline in trading volume can be attributed, in part, to increased regulatory scrutiny faced by the crypto industry in the United States. To mitigate these challenges and expand its global presence, the Winklevoss twins opted to set up a derivatives platform offshore, leading to the establishment of the Gemini Foundation. By incorporating the GUSD stablecoin as the primary token on the derivatives exchange and offering perpetual contracts denominated in GUSD, Gemini aims to provide users with a stable and seamless trading experience while maintaining regulatory compliance.
Conclusion
As the crypto industry continues to evolve, competition among exchanges intensifies. For Gemini, the launch of the Gemini Leaderboard competition represents a strategic move to attract new users and rejuvenate its trading volume. By offering attractive rewards and fostering a competitive atmosphere, the derivatives exchange aims to position itself as a preferred platform for crypto traders worldwide. As the first competition commences on August 1, 2023, traders and crypto enthusiasts eagerly await the opportunity to showcase their skills and potentially secure their spot among the top performers on the Gemini Leaderboard.
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