Summary
- Gemini said it burned $130 million worth of Ripple USD (RLUSD) on the XRP Ledger to reclaim liquidity.
- Vet and The Crypto Basic said the large-scale burn was a normal process for liquidity management and handling payment flows in a stablecoin system.
- Gemini recorded a $580 million net loss last year, but The Crypto Basic said the exchange is operating normally and has not entered bankruptcy or court receivership proceedings.
Forecast Trend Report by Period
U.S. cryptocurrency exchange Gemini has burned Ripple’s stablecoin Ripple USD (RLUSD) worth $130 million.
According to The Crypto Basic on the 31st (local time), Gemini carried out two burns that day on the XRP Ledger (XRPL), destroying RLUSD worth a total of $128 million. Vet, a validator on the XRP Ledger, said on X that “this means Gemini asked to have the liquidity it used to issue Ripple USD with Ripple returned,” adding that “(the burn) is a normal procedure that occurs in the operation of a stablecoin.”
The Crypto Basic also noted that “large-scale burns commonly occur in stablecoin systems like Ripple USD.” It reported that “companies use (burns) for liquidity management after payment settlement and to meet user withdrawal demand,” adding that “(burns) also help process payment flows that arise in card payments or when using exchanges.”
Some have raised concerns that the burn may be linked to a deterioration in Gemini’s financial health. In fact, Gemini posted a net loss of $580 million last year. The Crypto Basic said, “Gemini is still operating normally,” adding that “the exchange remains in operation and has not entered bankruptcy or court receivership proceedings.”
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
