Gemini burns a quarter of circulating GUSD

Over 1 million Gemini Dollars (GUSD) was burned yesterday, December 3rd, according to recent reports. The burned amount represents one-quarter of all Gemini coins in circulation, which came as quite a shock for many of the coin’s users and supporters. The event was quickly reported by Twitter’s crypto community, although the impressions regarding the event differ from one crypto enthusiast to another.

https://twitter.com/whale_alert/status/1201958611494289414

Gemini had performance issues

As many are likely aware, Gemini Dollar (GUSD) is a stablecoin that emerged back during the crypto winter of 2018. The coin was launched by the well-known Winklevoss twins, who also run the exchange called Gemini. The twins were in the crypto world from the early days, and they recognized the opportunity to launch a stablecoin back when the prices of all cryptocurrencies were dropping. Their goal was to provide a coin that would protect people’s investments through price stability and regulatory compliance. Unfortunately, the coin’s performance has been disappointing, to say the least. It was not used nearly as much as the twins expected, since most people preferred the larger stablecoin, Tether (USDT), despite its controversies. The coin’s trading volume continued to drop as 2019 advanced, going from $150 million in January to $3.8 million right now.

https://twitter.com/fintechfrank/status/1202027823403294720

Many have taken to calling GUSD a failed project, especially after the news of the 1 million burned tokens was published. The event is undoubtedly worrying, particularly due to the size of the burned amount. However, GUSD’s reducing trading volume has been announcing that the coin might not be as useful for quite a long time, at least to those who were able to recognize the signs.