Crypto gives great opportunities to make money. You can make passive income from crypto and there are many options. Many people get involved in crypto. They see how they can build their wealth in this industry. Centralized crypto platforms offer different opportunities to earn from crypto.
People notice the high volatility of the crypto market. They try to find safe options to generate income. Since centralized platforms offer earn programs, it seems that is safe. They do not have to do trading or engage in any risky activity. The platforms do everything for them. Users have to deposit crypto to their platforms and earn interest.
Crypto exchange Gemini operated an earn program where customers can deposit their crypto assets and generate income. Many people trust Gemini and it has a high reputation. Gemini made a partnership with Genesis Capital to offer this earn program. Genesis Capital managed the funds and we know what happened later.
Genesis was in trouble and faced a financial crisis after the collapse of the crypto exchange FTX. Gemini was aware of the financial condition of Genesis Capital but did not inform the investors who invested in their earn program. Investors funds were at risk and it ended up pretty bad.
People who put their crypto in Gemini earn program are in trouble. They may not get their crypto any time soon. New York Attorney General Letitia James filed a lawsuit against Gemini Trust, Genesis Capital, and Digital Currency Group for a billion fraud scheme. No one can tell how long it would take to resolve this by going through legal procedures.
Gemini earn program is just an example. We have Celsius, Voyager, BlockFi, and so on. They come up with cool slogans like bank is not your friend. They give vibes like their platform is like a bank and they are your friends. They do not reveal accurate information, lie to investors and customers, and mishandle investors' funds.
Everything comes to light at the end, but investors already lost their crypto assets. I do not think centralized crypto platforms that offer interest in crypto and different earn programs are as safe as they seem. Anything could happen and that crypto platform can be affected because of directly or indirectly related to that incident.
You have to decide how you are going to manage your risk and invest in cryptocurrency. You need to spend time doing your analysis and consider the potential risk you have to bear to invest anywhere in crypto.
Image Sources: 1, and 2.
Reference: 1.
About Me
I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. Stay tuned to know what's going on in crypto.
Follow me on Twitter and
Watch my videos: 3Speak, DTube, and YouTube.