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Gemini, a cryptocurrency exchange, teases an IPO

Gemini, a cryptocurrency exchange, may contemplate an initial public offering (IPO). Cameron and Tyler Winklevoss, the exchange’s co-founders, indicated they were open to the notion of going public in an interview with Bloomberg. “We’re keeping an eye on the market and debating internally whether it makes sense for us at this moment,” Cameron Winklevoss, president of Gemini, said.

While revenue estimates for its competitor Coinbase have been made by analytical firms and publications, little is known about Gemini’s financials. The company recently stated that it had surpassed $10 billion in digital assets under care and boosted its employment to 350 personnel. The Winklevoss brothers are the principal investors in the company.

TAKEAWAYS IMPORTANT

Exchange of cryptocurrencies The co-founders of Gemini have stated that they are considering going public.

The financials of Gemini are unknown, although the business has launched various initiatives over the years to recruit retail and institutional users to its platform.

If the New York-based exchange decides to join public markets, it will be the third cryptocurrency company to do so in recent months. Coinbase, the largest cryptocurrency exchange in North America by trading volume, has already filed for an IPO with the Securities and Exchange Commission (SEC).

Bakkt, a crypto trading platform sponsored by NYSE parent Intercontinental Exchange, Inc. (ICE), went public last week with a special purpose acquisition company (SPAC) valued at $2.1 billion.

Is Now the Right Time to Go Public?

A change in the market’s circumstances is one of the reasons for crypto companies’ public listings. Bitcoin (BTCUSD) prices soared beyond $40,000 this year, breaking the previous high of $20,000, after a multi-year downturn. Previous price rises in cryptocurrency markets were attributed to retail investors, but press reports attribute the latest jump to institutional participation. This means that, in comparison to the 2017 bull run, there is greater liquidity in crypto markets, making them less subject to big swings.

Crypto exchanges’ infrastructure and capacities have also improved, allowing them to accommodate a greater range of users and trades.

The price of Bitcoin has also risen due to macroeconomic volatility and the inclusion of digital currencies into public and private operations.

These improvements should result in more revenue for cryptocurrency businesses like Gemini. In the past, the exchange has announced partnerships to stimulate retail crypto transactions and offered specific products for institutional investors, such as custody solutions. It’s difficult to say whether these activities have shifted Gemini’s revenue needle in the lack of accessible statistics or expense projections.

Meanwhile, the exchange has announced the launch of another another product in an effort to increase income and user numbers. Customers will receive up to 3% back in Bitcoin or other cryptocurrencies for every transaction made with the Gemini credit card, which is the crypto counterpart of a standard cashback credit card. Customers will be required to open accounts on Gemini’s cryptocurrency exchange in order to store the coin, hence increasing the exchange’s user base.

What do you think?

Written by Trevanna Gordon

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