Gemini Trade Reversal

[djskibo]

What are you thoughts on the precedent Gemini bitcoin exchange has set with regards to the recent order reversal? FYI, I was on the losing end of this reversal.

My point of view:

In the end, there were two main parties hurt. Savvy traders, like those who use understand the liquidity of the exchange and use that to determine their trades were hurt. And Gemini’s reputation was hurt. Gemini bills itself as an exchange for Institutional Investors however this is where they have fallen short so far. They do not have rules in place, like most mainstream New York exchanges, that decide outcomes in an unbiased way.

Safeguards, like the automated flagging for abnormal orders were not effective or non-existent. Do they really have these safeguards coded into the platform already, or do they just say the platform will do that?

Throughout this whole ordeal there has been a lack of timely communication. It has taken an average of two to three days per email sent to receive a response. They also do not attach a specific representative to complaints. I am not sure who I am questioning, complaining, demanding, talking to when receiving these emails.

For the regular investor, like myself and many of the users affected in this situation, Gemini exchange might not be the best place to trade bitcoin right now. From the looks of it, there are only a handful of bots that provide liquidity to the exchange with limit buys and sells of around 25ish BTC. These bots constantly battle to front run your limit orders, and remove their support limit orders every few seconds making it hard to buy or sell with little slippage. Also, this is definitely not helpful for the institutional traders with a large account balance to establish a position, unless they themselves are in charge of the bots.

[Fremont]

Sorry to hear you lost out as a result of Gemini's decision to reverse trades. I, too, believe that it was a bad business move to make.
Just in case you didn't see it (it's buried a little on another board), there's more discussion on this topic here:

trading-discussion/gemini-exchange-sees ... t2548.html

[djskibo]

Ah, okay! I responded there. You can delete this thread. Thanks!