Cameron and Tyler Winklevoss keep spinning crypto gold with shrewd moves that seem to be several steps ahead of both traditional Wall Street behemoths and the limited competition within the institutional crypto world at the moment. Not content to play the games that seem to have taken hold of the masses in crypto like acronym-laden social media posts, alt-coin pumps, twitter beef, exchange outages, etc. Instead, they are creating an institutional juggernaut that could dominate global transactions as cryptocurrencies gain mainstream adoption.
A little rundown of what little competition these guys have in the institutional space as crypto adoption grows:
- Coinbase and GDAX are competitors but only if you consider a retail platform attempting to break into institutional grade block trades ‘competition’. GDAX effectively began legitimate operations two years ago.
- Traditional Wall Street firms attempting to start cryptocurrency trading desks are even further behind, which leads us to the third point of reference.
- Gemini is uniquely positioned to be the vendor that Wall Street and global investment banks use as the clearinghouse of choice for any and all crypto transactions of scale.
That last point cannot be overstated. The Winklevoss twins are on the verge of outfoxing everyone else in the evolving maze of a maturing crypto marketplace. Patents, IP, a ‘first in market’ institutional exchange, a venture capital firm – all ready and available to handle any crypto transaction that they deem ‘best in class’.
In a way, what they are close to pulling off is creating Goldman Sachs 3.0. And they may not position it that way or even want to hear it, but that is where this is headed. A global firm that can pick and choose its clients at will and push and pull the markets in the direction they believe it should go.
Examples of that ‘push and pull’ dynamic has to do with their unique vision to embrace regulation and working with traditional fiat organizations to foster adoption. This will continue to build their brand as first movers and the selection of choice at places like the NASDAQ, NYSE begin to trade and clear cryptocurrencies. You can bet that those trades will flow through Gemini.
Projecting a few years down the road, who’s to say that Cameron and Tyler don’t decide to scoop up several smaller exchanges to add to their portfolio. Global reach would make sense for their vision. All sorts of names would fall under that umbrella at the moment; most of which are retail focused, but attempting to break into the institutional space. Could Gemini pull off a “Facebook buys Instagram” type of strategy in crypto? Of course, they could and probably have intelligence and strategy scenarios for just those possibilities.
The Winklevoss twins are making every move that portends a long term play that could end up making them the richest duo in the world. And that isn’t even a remotely hyperbolic comment. Should the crypto markets move north for an extended period over the next decade, nobody is positioned in the same stratosphere as these guys.
And Exhibit A is another patent that was just granted to the two brothers yesterday:
“The successful patent application, which the twins originally filed in December 2017, outlines “systems, methods, and program products” for crypto-based asset trading. The move marks another victory for Winklevoss IP this year after the company also gained a patent tied to cryptocurrency security in February as part of its Gemini trading platform plans. The description of the mechanism governed by the patent reads: “The present invention generally relates to systems, methods, and program products for use with exchange-traded products (‘ETPs’) holding digital assets and other products and/or services related to ETPs holding digital assets.”
Everyone else is playing catch up here. Keep a close eye on everything the Winklevoss brothers do in crypto. Everything.