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As competition among the top US exchanges intensifies, the Winklevoss twin’s Gemini exchange currently hosts $30 billion worth of cryptocurrency.
On May 11 announcement, Attributed to exchange Most of this year’s growth To meet the strong demand of institutional clients:
“With the amazing growth of the crypto market this year and the participation of institutional investors, we have more than tripled the number of cryptocurrencies under custody since the beginning of 2021.”
Gemini works with large asset management companies, including BlockFi, Blockchange, CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors and WealthSimple.
This New York-based company was founded in 2014 by Cameron and Tyler Winklevoss. Before rival Coinbase went public on the Nasdaq on April 14, the two told Bloomberg that they were also “considering” public listing of Gemini.
If Gemini or Another large exchange will be publicly listed, This may greatly affect Coinbase’s stock price-from the first day of trading at $328.28 to the current $288.46.
Is Coinbase overrated?
Senior Wall Street analyst and New Constructs CEO David Trainer said in a report to customers on Tuesday that he expects Coinbase’s stock price to fall to $100 or even lower due to increased competition. Trainer suggested that Coinbase is currently overvalued and pointed out that its current valuation means it will exceed the combined annual revenue of Intercontinental Exchange and Nasdaq.
“Investors should expect the stock to continue to underperform because the stock price is likely to fall to $100 or less, because it is clear that the company is unlikely to meet the future profit expectations generated by the stock price.
Coinbase is expected to report earnings of $3.07 per share for the first quarter, and Thursday’s revenue of $1.82 billion. The trainer said that even if it exceeds expectations, it will only attract more competitors and depress future revenue.
He said: “As competition enters the market, Coinbase may not be able to sustain its future blowout earnings.”
In April, Trainer warned that Coinbase’s proposed $100B valuation was too high due to increased competition from Gemini, Bitstamp, Kraken and Binance.
The figures released in March indicate Coinbase Custody By the end of 2020, have more than $90B in asset custody.
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