Despite the recent troubles of the cryptocurrency market, Gemini CEO Cameron Winklevoss is not backing down from his bullish position on the future of Bitcoin, hiring New York Stock Exchange (NYSE) Chief Information Officer Robert Cornish to lead Gemini’s ongoing product expansion drive as it continues to bet heavily on the future of crypto.
Gemini Expansion Strategy
In Winklevoss’ opinion, the price dips affecting bitcoin and other cryptos are merely temporary blips on the road to cryptocurrency domination after mass adoption. He has consistently stuck by his opinion that Bitcoin is to the 21st century what gold was to the 19th century, and in fact his stated position is that bitcoin will eventually become a trillion dollar asset. This is, in his view, the best time for the crypto industry to invest in developing new products and supporting new innovations.
Gemini has thus hired Robert Cornish to be a key part of the expansion strategy as the crypto exchange bids to become a key player in the market for product offerings targeting larger institutional investment such as hedge funds and banks. Cornish’s role at Gemini will be to help build out its cryptocurrency platform and manage its expansion from its current supported token list of bitcoin, bitcoin cash, zcash and litecoin.
His job will specifically be to identify and build out the services that will create value for larger institutional investors whom Gemini expects to enter the crypto investment space eventually. Many market observers view Cornish’s appointment as a substantial gamble and a big statement of intent on Gemini’s part because the institutional investors who are expected to justify the investment in expansion have by and large not really staked substantial claims in the crypto market yet.
Criticisms of Gemini’s Bull Strategy
A number of crypto market bears including Berkshire Hathway’s Warren Buffett, Charlie Munger and JP Morgan CEO Jamie Dimon have pointed out that the entire crypto market has performed substantially below expectation for most of 2018, which calls into question the justification for investing in the market, especially as a floor has not been found yet.
Bitcoin alone has declined over 60% from its December 2017 price, and a number of bitcoin-based investments made in 2017 are exiting their one-year funds lockup period, which is contributing to strong supply of Bitcoin and resultant downward price pressure.
Winklevoss however, insists that he is not concerned about what he terms “noise”, stating that every asset must have a bull and bear period, and that he is only focused on growing Gemini.
Speaking recently he said:
“Our belief and thesis have stayed the same … we have conviction, and we keep pointing towards the north star and our goal. It’s been arguably a slower couple of months in terms of trading, but at Gemini it’s been one of the busiest months of our existence as we scale and build. Certainly there’s going to be people in the market that lose their interest. That is what it is.”