Gemini’s co-founder said they are considering going public. They have not made a decision but are considering their options. The exchange is claimed to have exceeded the custody of $10 billion worth of cryptocurrencies.
One of America’s top cryptocurrency Exchange Gemini may be interested in opening Initial Public Offering (IPO). Co-founders of Gemini, Cameron and Tyler Winklevoss, told Bloomberg in an interview that were thinking about going public. They said that they were observing market conditions and discussing options to see what might be suitable to them.
Whereas, publications and estimation have been published by various analysts about Coinbase. Gemini’s financial conditions are not that widely known. However, reportedly the exchange recently increased its number of employees to 350. Gemini also recently announced that it had passed the mark of $10 billion of digital currencies assets. According to sources, the founders are also the main investors of the outfit.
If Gemini decides to go public then it would be the third crypto dealing platform to have gone public. Previously America’s biggest crypto trade platform provider Coinbase has already applied to Securities and Exchange Commission for Initial Public Offering. Coinbase is the largest exchange in the whole of North America in terms of trading volume. A crypto trading exchange ran by international Exchange Inc. (ICE), Bakkt went public last week. The exchange as a special purpose acquisition company joined the public listings, valued at $2.1 billion.
One of the reasons for exchanges to go public is because of the changing market conditions. After seeing slumps in its prices for many years, Bitcoin’s price boosted past $40,000 in a matter of few months. Previously retail investors boosted the prices of crypto past 20k then dropping them back down close to their original price. But this time institutional investors have joined the crypto market due to the inflations caused by corona-pandemic in every other market. Institutional investors have a reputation in the trade market unlike retail investors who buy, make a profit, and leave. Therefore, cryptocurrencies are considered to have become more stable than in the past.
The crypto exchanges are however evolving along with the advancing blockchains. Upgrade in their infrastructures have advanced their capabilities to facilitate a variety of trade and users. The corona pandemic had unsettled the macro-economy and affected trade widely. The integration of cryptocurrencies in public and private trades by other mediums, like financial institutions, have also boosted their values.
For crypto exchanges, this integration and adoption by other trade ventures had been found beneficial monetarily. Gemini having larger volumes had benefitted much more than other crypto businesses.
The exchange had announced to launch a credit card like card, which will also be offering deals and cash backs. To hold the card customer will have to open an account with Gemini’s exchanges thereby increasing its number of users.