Gemini’s Stablecoin Falls After OKX Delisting, Loses USD Peg

Overview

• Gemini-backed stablecoin Gemini Dollar (GUSD) has lost its USD peg, falling by 0.84% in the last 24 hours.
• Crypto exchange OKX announced that it would delist GUSD on Feb. 1.
• The exchange is also facing increased scrutiny from the New York Department of Financial Services over claims related to Federal Deposit Insurance Corporation coverage.

Gemini Dollar Price Drop

Gemini Dollar (GUSD), a stablecoin backed by digital asset platform Gemini, has dropped its US Dollar parity, slipping to $0.9851 in the last 24 hours according to CryptoSlate’s data. The number of active addresses holding GUSD has also fallen to a 2020 low, while GUSD’s supply has dropped from around $880 million three months ago to $607 million.

OKX Delisting

Crypto exchange OKX announced that it will be delisting GUSD on Feb. 1 at 8:00 am UTC, citing user feedback and its delisting policy as reasons for the decision. The exchange said it monitors all listed projects regularly and reviews their listing qualifications on a regular basis.

Increased Scrutiny

The New York Department of Financial Services is investigating Gemini over claims related to Federal Deposit Insurance Corporation (FDIC) coverage, which some users believe were misleading them into believing that Earn product was FDIC insured as well. Furthermore, Genesis and Gemini are currently engaged in a public spat regarding their respective Earn products.

Conclusion

With prices dropping significantly and multiple investigations surrounding it, the future of Gemini dollar remains uncertain at this point in time. With exchanges such as OKX delisting the coin and more regulatory attention being paid towards its activities, only time will tell how things pan out for GUSD in the long run