The Winklevoss twins, who have spent years funding their cryptocurrency exchange and custody company themselves, are about to seal a deal that gets them 400 million dollars in capital and see that Gemini Space Station, LLC receives a 7 billion dollar valuation. The deal might mark a significant turning point in their competition with Mark Zuckerberg. The deal will see the twins hold a 75 percent stake in the company. In more good news for them, their net worth could double at the end of the deal.
Details Of The Deal
Capital management experts Morgan Creek Digital are the major sponsors of the deal with support from DeFi firm ParaFi Capital and other firms. The agreement doesn’t just create an opportunity for the twins to go up against Zuckerberg, as it is also seen as a joint campaign against what is termed as Walled Gardens. A Walled Garden refers to a situation where companies retain ownership of user data and make a profit from it
It is for these very reasons that blockchain firms last month raised about 4 billion dollars to break down this Wall Garden. The funds were used to create a virtual version of the internet, a parallel reality called Metaverse. The purpose is for users to be able to build on it and monetize what they make. The Tech giants are already preparing a response to this, evident with the rebranding of Facebook to Meta. They will want to make sure they don’t lose the people creating content on their platforms.
Cameron Winklevoss says there are two distinct directions now in technology. One which is centralized and another that is decentralized. He believes that better prospects lie in the decentralized metaverse, and that is the metaverse he believes ensures user rights protection and dignity.
Other Noteworthy Fundraisers
Aside from Gemini, in the last couple of months, other firms have been able to secure funding this year. The most recent is Consensys which yesterday disclosed that it had raised 200 million dollars in funding; The move skyrocketed its valuation to 3.2 billion dollars.
Before Consensys, we had FTX, a cryptocurrency exchange. The firm raised a record 900 million dollars in August and an additional 400 million dollars last month. The company currently has a 25 billion dollars valuation.
Coinbase currently has a market capitalization of about a hundred billion dollars after going public in April. The firm is the biggest exchange in the United States. Gemini had also considered going public in January in a statement by Cameron to Bloomberg.
Kraken, another cryptocurrency exchange, is making considerations to go public in 2022. The firm is looking to attain a 20 billion dollar valuation. By 2022 we will know if the company pushes through with its plan.
The Winklevoss’s And Mark Zuckerberg
The first engagement between both parties came when the twins contracted Mark to build a social platform for their school. Zuckerberg will create Facebook, and the twins took him to court and ended up settling for cash and Facebook stock. They went on to invest in cryptocurrencies and start the exchange we know as Gemini today.
At some point in 2019, it seemed like the parties were about to become competitors once more. Facebook started the initiative Libra as their entry into the cryptocurrency space in partnership with payment platforms like MasterCard and PayPal. The collaboration was shut down due to controversy surrounding Facebook at the time. It seems the stage is now set for another showdown in the battle for dominance of the Metaverse.
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