Winklevoss Twins Implement Leaderboard Tactic on Gemini to Boost Derivatives Exchange
Gemini, the cryptocurrency exchange founded by the billionaire twins Tyler and Cameron Winklevoss, has resorted to a popular tactic to boost activity on its derivatives exchange.
The company plans to launch its first-ever "leaderboard" competition in August, offering prizes and recognition for the most successful traders, according to a recent report from Bloomberg.
As per the report, users will need to fund their accounts with a minimum of $250 worth of Gemini Dollar stablecoin and maintain a similar balance throughout the month-long contest to participate in the competition.
The move is part of Gemini's strategy to expand its presence in Asia and establish a non-US crypto derivatives platform, as regulatory measures in the United States have become increasingly stringent.
Other major crypto exchanges have previously implemented similar promotions with the goal of increasing trading volume and attracting more users.
For example, Binance, the largest cryptocurrency exchange globally, features a weekly ranking system for futures traders, while Bybit goes a step further by differentiating between regular traders and "master traders."
According to finance professor Campbell Harvey from Duke University, these leaderboard competitions are merely promotional gimmicks designed to increase trading volume and generate higher profits for exchanges, he told Bloomberg in a comment.
"The amount of money these exchanges make is directly related to volume. Anything you can do to increase volume, will likely increase profit," Harvey said.
Gemini's stablecoin, the Gemini Dollar, currently has a market capitalization of approximately $400 million, making it the eighth-largest stablecoin globally.
However, usage of the stablecoin has declined
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