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But the ~8% on GUSD is not insured right?
by 11101010001100 5y ago
But the ~8% on GUSD is not insured right?
- artdigital 5y agoNo crypto products are insured the same way banks are insured
- medvezhenok 5y agoThis is incorrect - there is no FDIC backstop on crypto or stablecoin lending. The risks are not comparable. Source: https://support.gemini.com/hc/en-us/articles/360056367771-Are-the-Crypto-Moved-to-Earn-Insured- https://support.gemini.com/hc/en-us/articles/360056367771-Ar...
- randomhodler84 5y agoNeither is the 600k FDIC unless it is in 3 different bank accounts earning 0.01%pa. Securities… well you got SIPC protections if the brokerage fails but that ain’t insurance. Insurance is useful sure but insurance also is a cost. Some risks in life are uninsurable.
- xnx 5y agoI think the FDIC will insure $1,250,000 if you name 5 beneficiaries.
- gruez 5y agoSeems to be? https://www.gemini.com/legal/user-agreement#section-fdic-insurance https://www.gemini.com/legal/user-agreement#section-fdic-ins... (the FDIC section is a subsection of the gemini dollar section). That said if your crypto wallet gets hacked or the lending platform goes under, you'll still lose your money. I'd imagine the FDIC protection is only for if the bank where gemini stored its dollars went under.
- medvezhenok 5y agoThat is insurance for deposits in Gemini, not for the lending program (which is where you get the %)