Gemini is a crypto exchange that is regulated in nature and had been founded by the Winklevoss twins in 2014. It is also a wallet as well as a custodian through which investors and clients can purchase various cryptocurrencies, including but not limited to BTC, ETH, and more, in a secure and easily accessible manner.
In recent news, the exchange’s cryptocurrency assets have increased dramatically in 2021 so far, with Gemini now holding $30 billion in the aforementioned assets. It has been implied that this success was heavily attributed to the spike in interest from various asset managers and financial institutions. This is certainly good news for the Winklevoss twins as numerous participants in the United States strive to compete for the position of the top cryptocurrency exchange in the country.
Institutional clients to thank
An announcement had been made on the 11th of May 2021 where it had been revealed that it had been the institutional clients that were largely responsible for the abovementioned growth experienced by Gemini, resulting in the cryptocurrency assets tripling in value.
In related news, Gemini has been known to collaborate with various other asset managers such as Blockchange, DAiM, BlockFi, BTG Pactual, CI Global Asset Management, Eaglebrook Advisors, Coinlist, WealthSimple, and Caruso.
Relationship with Coinbase
Much like how Coinbase had gone public on Nasdaq not too long ago, the Winklevoss twins were actively considering making the same decision as to their rival. Should Gemini go public, then this could have a serious effect on Coinbase’s respective share price, which, as of the time of this writing, has decreased to just over $288.4 from its previous amount of $328.3.
Moreover, David Trainer, an analyst for Wall Street and the CEO of New Constructs, had stated this past Tuesday that the abovementioned Coinbase share price could potentially dip to $100 or perhaps lower than that as a result of the surge in competition. He, therefore, claimed that Coinbase is, in fact, overvalued at the moment, and he also predicts that the exchange’s total valuation seems to imply that it shall surpass the accumulated yearly revenue of Nasdaq and the Intercontinental Exchange.
He concluded by saying that the stock is expected to consistently underperform and that it is not abundantly clear as to whether Coinbase will be able to adequately satisfy its profit expectations for the future.