Cryptocurrency exchange Gemini is going public
Do you remember the Winklevoss twins who accused Zuckerberg of stealing the idea and code for 'Facebook'? They are the founders of the cryptocurrency exchange Gemini, which is now about to go public on Nasdaq.
In the past, Cameron Winklevoss and Tyler Winklevoss reached a legal settlement with Zuckerberg, resulting in the brothers receiving $65 million (approximately NT$180 million). This incident was later made into a movie (The Social Network), which brought the brothers into the spotlight. In 2014, they seized the market opportunity in cryptocurrency and founded the cryptocurrency exchange and custodian Gemini to help clients buy, sell, and store various cryptocurrencies and assets.
Cameron Winklevoss and Tyler Winklevoss founded Gemini after ending their lawsuit with Zuckerberg.
Eleven years later, Gemini's valuation has reached $7.1 billion and is about to go public, making it the third cryptocurrency exchange to go public in the US after Coinbase and Bullish.
Circle successfully went public on the New York Stock Exchange (NYSE) in June, raising over $1 billion, with its stock price soaring 168% on the first day. Subsequently, the cryptocurrency exchange Bullish also raised $1.1 billion, with a price increase of up to 84% on the first day. This series of successful IPO cases has drawn significant attention to Gemini's path to going public.
However, Gemini's path to going public has not been smooth. From the S-1 documents submitted to the SEC, the exchange is facing increasing net losses and market share erosion, experiencing a 'difficult journey.'
Gemini: From crypto compliance pioneer to fallen idol
Gemini's story began in 2014 when the Winklevoss brothers heavily invested in Bitcoin using the funds they obtained from their settlement with Facebook, at one point holding about 1% of its total supply. They quickly realized the lack of a rigorously regulated and trustworthy platform at the time, leading them to decide to create Gemini, focusing on strict compliance with US regulatory standards from the start.
Further reading: Once accused of stealing from Zuckerberg! The twin brothers founded the cryptocurrency exchange Gemini, with revenue surging sixfold in a year.
This strategy was unique during the period of rampant growth.
Gemini officially launched in October 2015, having previously obtained a landmark 'BitLicense' from the New York State Department of Financial Services. Gemini also became the first among competitors to offer regulated Bitcoin futures and actively built infrastructure for institutional clients, with its business expanding into international markets to provide digital asset custody services.
Gemini has been actively positioning itself for compliance from the outset.
Gemini offers a diverse range of products and services to meet the needs of retail and institutional investors. These include over-the-counter (OTC) services, issuing USD-based stablecoins, and providing trading services for various crypto assets such as Bitcoin, Ether, and various stablecoins. Additionally, it has launched a U.S. credit card that offers cryptocurrency cashback rewards and supports crypto staking services.
In November 2021, Gemini successfully raised $400 million, bringing its valuation to $7.1 billion. Currently, the total assets on Gemini exceed $18 billion, with cumulative trading volume reaching $285 billion.
However, as competition in the crypto market intensified, Gemini's trading volume began to sharply decline in early 2023. By February of that year, Gemini's share in the global spot trading market had dropped to a historic low of 0.07%. According to CoinMarketCap data, Gemini is currently barely maintaining a position in the top 25 global trading platforms, surpassed by many lesser-known projects.
In addition to market share challenges, Gemini has also faced backlash from users and regulatory bodies. Its 'Earn' lending program previously left many users unable to withdraw funds, causing significant dissatisfaction. Additionally, the company has been involved in multiple legal disputes, further damaging its reputation. For instance, the SEC accused Gemini in 2023 of selling unregistered securities to retail investors through the Earn program, although these charges were withdrawn earlier this year.
In January of the same year, Gemini also agreed to pay $5 million to settle a lawsuit from the Commodity Futures Trading Commission (CFTC), which accused Gemini of misleading regulators when attempting to launch the first US-regulated Bitcoin futures contracts, although the company did not admit or deny responsibility.
Unveiling the prospectus: The operational status and potential risks of Gemini
Gemini's IPO will be underwritten by well-known investment banks such as Goldman Sachs, Citigroup, Morgan Stanley, and Cantor, although the scale of the offering and expected price range have not yet been disclosed.
According to the S-1 document submitted by Gemini to the SEC, its financial situation is not optimistic.
In the fiscal year 2024, the company reported a net loss of $158.5 million against revenues of $142.2 million, with trading income accounting for about 70% of total sales. More critically, in the first half of 2025, Gemini's net loss expanded to $282.5 million, with revenues of only $67.9 million. This marks a significant increase from a net loss of $41.4 million in the same period a year earlier, and Gemini's net loss in the first half of 2025 has already exceeded the total loss for the entire year of 2024.
These data indicate that despite Gemini's pursuit of an IPO in hopes of reversing its fortunes, its current operational status is under significant financial pressure. The continuously expanding losses, coupled with a sharp decline in trading volume, may leave Gemini increasingly weakened in the highly competitive crypto market, lacking both profitability and growth momentum.
Gemini's revenue performance is not ideal.
For potential investors, Gemini's prospectus reveals its potential risks regarding market share, revenue model stability, and past regulatory disputes. While Gemini emphasizes its strong commitment to compliance, which may be an advantage in the increasingly stringent regulatory environment of the crypto market, the continuous expanding losses and intense market competition will still pose significant challenges post-IPO.
Will the IPO frenzy in the crypto market rise again?
In just two months, U.S.-based cryptocurrency companies such as Circle, Bullish, and Gemini have gone public, becoming a trend driven by multiple factors, one of which is the gradual relaxation of the regulatory environment and the increasing acceptance of the crypto industry by the Trump administration.
In fact, the Trump administration has signed related cryptocurrency legislation, and the Winklevoss twins themselves are involved. They not only donated Bitcoin to Trump's campaign but also attended the signing ceremony for the stablecoin bill by President Trump in July. Additionally, they have invested in Bitcoin mining company American Bitcoin Corp., associated with Trump's son, indicating a trend of the crypto industry intertwining with political power.
Before Gemini, the IPO performance of stablecoin giant Circle was a leading figure in this wave. Circle not only raised $1 billion through its IPO in June but also saw its stock price surge 168% on the first day, becoming the focus of the market. Although Circle subsequently reported a quarterly loss due to one-time costs associated with the IPO, its strong revenue growth still garnered attention.
Following closely is the cryptocurrency exchange Bullish, which successfully raised $1.1 billion earlier this month. Bullish's stock also performed well on its first day of trading, soaring from an IPO price of $37 to a high of $118, more than doubling in price. Notably, Bullish also owns the well-known crypto media outlet CoinDesk, which may have contributed to some of the hype.
Further reading: From Circle's surge to Figure's IPO application, Bullish's valuation of $4.2 billion! Did Trump's new policies ignite the blockchain IPO wave?
These successful cases have added confidence and momentum to Gemini's IPO. The company states that they hope to turn the situation around by taking Circle as a model, and for the Winklevoss brothers, this could be a more important battle in their entrepreneurial journey than the lawsuit against Zuckerberg.
Source: (TradersUnion), (TechCrunch), (WSJ), (Bloomberg)
This article is a collaborative reprint from: Startup Gathering
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