Gemini Exchange’s Winklevoss Brothers Fear Investors Are Losing Their Trust In Bitcoin: Here’s Why
Winklevoss Twins Fear Investors Are Losing Their Trust In Crypto, Here Is Why
Cameron and Tyler Winklevoss, popularly known as the Winklevoss twins, believe that the cryptocurrency industry is starting to face a crisis of confidence. According to the brothers, investors are starting to lose their trust in the market.
Why? Part of the reason, they believe, is what happened with the QuadrigaCX exchange. Their argument is that the regulators from the U. S. need to make the crypto market safer for the investors so that cases like this do not ever happen again and, therefore, the investors can be able to trust in the crypto market once more.
QuadrigaCX, in case you are not familiar with the recent case, is a Canadian exchange. Last year, the CEO of the company, Gerald Cotten, which was the only person with access to the private keys of the funds, died and took the secret with him to the grave.
After his death, the clients of the company discovered that their assets were no longer theirs and that they lost all access to them. Because of this, $194 million USD is stored in crypto wallets without access.
The Winklevoss twins believe that only with more oversight from the government cases like this will stop happening and Bitcoin can recover its price.
Are The Winklevoss Twins Actually Right?
While the regulation does attract investments because the institutional investors are generally afraid of risking their necks without some support from the law, what the twins said is actually very hard to prove.
Cryptos were going down in price a considerable time before the incident of QuadrigaCX happened. Therefore, it looks like they are trying to push a narrative here without presenting any actual proof about it.
Regulated or not, platforms can be hacked and they will lose all their money even if the CEO is alive and does not take the private keys to the grave. There are several issues with confiding your money to a centralized crypto exchange instead of keeping it in your wallet.
Mt Gox lost billions of dollars, BitStamp lost $1.43 billion USD, Bitfinex lost $900 million USD. In all these cases, the companies were hacked because they were not good enough to protect the funds.
A whole new problem arises, then. If you do not want to let your money at exchanges, you have to be responsible for it and that can be even more dangerous if you do not take care of your keys well because it will be 100% your fault. This also scares institutional investors. What they want is safety to profit.
In this case, it is really hard to know what to do. Regulation would certainly help trust, but what we got here is an intricate puzzle that will only be solved with time.