Most cryptocurrency enthusiasts will no doubt be casero with the Gemini exchange. The verhoging is wielded by the Winklevoss twins and has attracted a loterijlot of attention from institutional investors overheen the past few months. The exchange is especially known for its daily Bitcoin auctions. Last night, the company also began providing Ethereum auctions. Spil it happened, the very first one performed abysmally.
Very first ETH/USD Auction on Gemini is Disappointing
Thesis are very troubled times for Ethereum spil a entire. The popular cryptocurrency has lost a fair bit of value overheen the past few weeks and it emerges its downtrend will not be ending anytime soon. Falling from an all-time high of US$400 all the way to around US$185 te a few weeks is not a positive sign for Ethereum. However, Ethereum has bot overpriced for fairly some time now, especially when considering it wasgoed worth just above US$Ten spil recently spil January of this year.
Despite those declines, the Gemini exchange has determined to proefneming with ETH/USD auctions. Their auctions permit institutional investors to purchase large amounts of cryptocurrency with U.S. dollars. Its Bitcoin variant has bot doing fairly well recently, but it too had a mixed spectacle at the beginning. An media of US$1 million worth of Bitcoin or more being auctioned off every day is not all that uncommon now. There is a growing market for buying large amounts of Bitcoin without placing numerous buy orders on an exchange.
Whether or not the Ethereum auctions will be spil successful remains to be seen. The very first auction took place last night and attracted very little rente. Only 90 Ethers were sold during the auction, which is less than spectacular. One could even argue it is not worth conducting such an auction ter the very first place. The very first Bitcoin auction, ter comparison, raised overheen US$1 million. However, those auctions were known to draw less attention at certain times spil well.
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Considering how there will be only one Ethereum auction every day, volume will need to pick up pretty quickly. Gemini presently holds two Bitcoin auctions every single day, raising millions of U.S. dollars daily. If the very first Ethereum auction only brought ter $17, 400 it clearly shows there is far less rente ter Ether compared to Bitcoin. This is not entirely surprising since Ethereum has bot declining te value rapidly, both te U.S. dollar and Bitcoin value.
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Reddit users are wooed this daily ETH/USD auction volume will not pick up anytime soon. It may be premature to make such bold claims, especially considering this wasgoed only the very first auction of its zuigeling. One user even claimed that “Ethereum is shit, so no one should be astonished.” That is a very strong sentiment, albeit there is very little reason for institutional investors to buy Ether other than from a purely speculative perspective. With prices falling, there is no reason to buy Ethereum right now until the markets stabilize.
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It will be interesting to see how the daily Gemini Ethereum auctions evolve te terms of value and rente. With the weekend upon us, there will not necessarily be any significant switches overheen the next few days. Wij will revisit this topic te a few weeks to make a decent comparison, unless a massive auction were to toebijten ter the meantime. So far, it seems this gamble by Gemini will not be paying off anytime soon, but that does not mean it will always be that way.