As the competition for top U.S. cryptocurrency exchanges heats up, the Gemini exchange shows tremendous growth, upping the value of digital currencies under its custody to $30 billion.
Gemini attributes the gains they had this year to institutional clients’ strong demand. In its May 11 announcement, the company said they have more than tripled their crypto under custody since the beginning of 2021 due to “the impressive growth of the crypto market this year and increased participation from institutional investors.”
The company works with large asset managers, including BlockFi, Blockchange, CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors, and WealthSimple.
Plans to go public
In the days leading to the much-anticipated public listing of rival cryptocurrency exchange Coinbase on the Nasdaq on April 14, Cameron and Tyler Winklevoss, who founded the New York-based Gemini in 2014, talked about considering taking the exchange public, too.
It’s good news for them, but definitely not for Coinbase.
Analysts predict that if Gemini or any other big crypto exchange gets publicly listed, it will impact the price of Coinbase shares which now stands at $288.46, a far cry from the impressive $328.28 debut price it had.
Coinbase can drop to $100
David Trainer, Chief Executive Officer of New Constructs and a veteran Wall Street analyst, shared his sentiments about Coinbase, saying he expects the exchange’s share price to dip all the way down to $100 or even lower.
Trainer said this is because of the rising competition. He also noted that Coinbase is overvalued and that if the current valuation of the exchange stays, it will surpass the combined annual revenue of Intercontinental Exchange and Nasdaq.
He warned investors should expect the stock to continue underperforming, and Coinbase will probably miss the future profit expectations that were based on its stock price.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/gemini-now-holds-30-billion-in-cryptocurrency-custody/
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