Gemini Becomes the First Licensed Zcash Exchange in the World

Vlad Costea
  • Gemini is one of the oldest and most conservative cryptocurrency exchanges, which obtains trading licenses in the legally-challenging state of New York and only integrates new coins after long deliberation and analysis
  • Their third coin of choice is the privacy-oriented Zcash, and the unexpected news has already boosted the price by over 23 percent in the last 24 hours.

Say what you will about the Winklevoss twins, but they know a little something about planning and long-term strategies. They might have lost their Facebook project to Mark Zuckerberg, but they wisely invested the settlement money into Bitcoin, and have dedicated much of their business time to the purpose of growing cryptocurrencies and creating a bridge between regulatory frameworks and cryptographic inventions that are meant to dodge them with sheer excellence.

The efforts of Cameron and Tyler have created Gemini, a cryptocurrency exchange which manages to comply with the strict rules imposed by the state of New York and has a perfectly-clean slate in regards to working with the authorities. Right now, Gemini only allows registered users to trade Bitcoin and Ethereum, but a recent announcement has revealed that the third crypto asset to get added to the platform is Zcash!

It might sound a little strange that a company which tries its best to comply with all the rules takes all the steps towards adopting a privacy coin, but it seems like the Winklevoss twins have undergone all the NYDFS procedures. Correspondingly, on Saturday, May 19th 2018, the Gemini users will be able to make ZEC deposits. It's worth noting that the New York State Department of Financial Services has also given green light to Gemini to add Litecoin and Bitcoin Cash, but the exchange platform hasn't announced any specific dates.

According to Tyler Winklevoss, "Zcash picks up where Bitcoin left off" - a statement which clearly points out the privacy capabilities of the coin. His twin brother Cameron, who acts as president of the Gemini exchange, has been a little more direct and mentioned that "Bitcoin being digital gold, and Zcash being digital cash". This can be interpreted as a jab to all the Bitcoin Cash supporters, as well as an acknlowledgement of the BTC limitations.

Regulatory Concessions

Both shielded and unshielded ZEC addresses can be used in order to make deposits to the Gemini exchange, but withdrawals will only be possible via unshielded addresses. Clearly, this is the compromise that's meant to please New York regulators and a measure which counters money laundering, tax evasion, and potential financing of criminal organizations.

To some privacy coin fans and HODLers, not being able to withdraw funds privately is a big drawback and can be interpreted as a trojan horse: it's like trading your anonymity for the ability to exchange your coins. To others, it's a really quick and convenient way of exchanging the ZEC that they have been holding in their portfolio. However, the procedures partly defeat the purpose of privacy coins and basically hand all the information to the authorities - which probably is one of the points that Monero fans will make, as they always say that optional privacy is not real privacy.

Screen Shot 2018-05-14 at 18.52.09.pngSource: CryptoCompare

In spite of this drawback, the price of Zcash has surged by over 25 percent inthe last 24 hours, reaching a peak of $336. Gemini is one of the biggest cryptocurrency platforms in the world, and they are among the heavyweights in terms of financial power and influence over the market. How will the addition of ZEC influence the trading volumes and long-term performance of the coin? That's still something which remains to be seen.

Bloomberg Intelligence: Bitcoin Price Could Fall as Low As $1,500

Siamak Masnavi

"Bitcoin's no longer boring," Bloomberg declared on 16 November 2018, at the end of a week that saw Bitcoin mostly lose its recent image as a "stablecoin" as the result of a dramatic drop in price on November 14th, the day before Bitcoin Cash's hard fork.

BTC 2 Week Chart - 18 Nov 2018.png

Analysts at Bloomberg Intelligence, Bloomberg’s research arm on the Bloomberg Terminal, "predict the price could fall to $1,500," which suggests that the Bitcoin price could fall more than 73% from its current level (at press time, according to data from CryptoCompare, Bitcoin is trading at $5,593, up 0.81% in the past 24-hour period).

On Wedneday, the BTC price, which was around $6,369 at 06:00 UTC, had plunged more than 12% by 20:00 UTC (when BTC was trading around $5,569), to reach its lowest level in over a year. The altcoins with the exception of the stablecoins (excluding USDT) were not doing any better, with most of the top 20 cryptoassets suffering double-digit percentage drops.

On November 15th, as covered here, CNBC referred to the bloodbath in the crypto markets as "Crypto Meltdown," with Fast Money Trader Brian Kelly, who is the founder and CEO of crypto investment firm BKCM, blaming the nervousness in the crypto markets on the uncertainly caused by the "Bitcoin Cash Civil War" (the fight between the two competing implementations of Bitcoin Cash, Bitcoin ABC and Bitcoin SV, to claim the title of the real/true Bitcoin Cash). Others were blaming the drop in Bitcoin's price on the lowering of Bitcoin's hash rate as the result of some Bitcoin mining pools supporting the ABC camp, such as Roger Ver's, switching their attention temporarily from Bitcoin to Bitcoin Cash.

Travis Kling, the Founder and Chief Investment Officer of cryptoasset management firm Ikigai, told Bloomberg on November 15th:

"I didn’t sleep well last night. There’s a small chance that, it’s difficult to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market."

Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, warned that the bear market would not be over anytime soon:

"[The slump] was sparked by the pump for the Bitcoin Cash hard fork. That pump that began a few weeks ago, got the market a bit too offsides with speculative longs playing for the good-old days. But this is an enduring bear market."

On November 16th, McGlone tweeted:

Although, thankfully, not all market analysts are as bearish as those at Bloomberg intelligence, even legendary Bitcoin bull Thomas Lee, who is the co-founder (and Head of Research) of independent research boutique Fundstrat Global Advisors, is feeling quite a bit less bullish on Bitcoin these days. Lee, who had lowered his year-end price target for Bitcoin from $25,000 to $22,000 on July 5th, in a note to clients on November 16th, lowered his estimate again, this time from $22,000 to $15,000.

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