Gemini Crypto Exchange Prevents IPO

Cryptocurrency exchange Gemini may be considering an initial public offering (IPO). In an interview with Bloomberg, Cameron and Tyler Winklevoss, co-founders of the exchange, said they were open to the idea of ​​going public. “We’re watching the market and we’re also having internal discussions about whether it makes sense to us at this time,” said Cameron Winklevoss, president of Gemini.

Although analytics and publishing companies have made revenue estimates for their competitor Coinbase, little is known about Gemini’s finances. The company recently increased its number to 350 employees and announced it had surpassed digital assets worth $ 10 billion under custody. The Winklevoss brothers are the main investors of the outfit.

Key Takeaways

  • Crypto exchange Gemini co-founders have said they are considering the possibility of going public
  • Not much is known about Gemini’s financial affairs, but the company has launched several initiatives over the years to attract customers, retail and institutional, to its platform.

If the exchange in New York decides to tap public markets, then it will be the third crypto business to do so recently. Coinbase, North America’s largest cryptocurrency exchange by trading volume, has already filed with the Securities and Exchange Commission (SEC) for an IPO. Bakkt, a crypto trading platform backed by the owner of NYSE Intercontinental Exchange, Inc., went. (ICE), went public with a special purpose acquisition company (SPAC) last week at a valuation of $ 2.1 billion.

A Good Time to Go Public?

Part of the reason for public listings of crypto businesses is due to changing circumstances in their markets. After multiple years of fall, the price of Bitcoin (BTCUSD) skyrocketed to $ 40,000 this year, breaking its earlier record of $ 20,000. Retail investors were supposed to drive past price rises in cryptocurrency markets, but news reports credit institutional participation for the latest surge. This means there is more liquidity in crypto markets compared to the 2017 bull run, making them less vulnerable to wild swings.

The infrastructure and capabilities for crypto exchanges have also developed, enabling them to incorporate a wider range of customers and trades. Macroeconomic instability and the integration of digital currencies into public and private enterprises have also increased the price of Bitcoin.

For crypto businesses like Gemini, these developments should translate into more revenue. The exchange has previously announced partnerships to encourage retail transactions using crypto and has launched specific products, such as custody solutions, targeted at institutional investors. In the absence of public data or cost estimates, however, it is difficult to guess whether these initiatives have shifted the Gemini revenue needle.

Meanwhile, the exchange announced yet another product launch to boost its revenue and consumer numbers. The Gemini credit card is the equivalent of a regular cash-back credit card crypto where customers receive up to 3% cash back in Bitcoin or other cryptocurrencies for each purchase. In order to store the cryptocurrency, customers will have to create accounts on the Gemini cryptocurrency exchange, thereby boosting their user numbers.

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