Cryptocurrency exchange Gemini (GEMI) was heavily hyped as the next big play in digital assets when it held its initial public offering (IPO) on Sept. 12. That seems like a long time ago now.
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On Sept. 16, GEMI stock plunged 14% to close the trading session at $28.13 per share. The stock is now back at its IPO price of $28. It’s been a quick reversal for Gemini, whose stock rose by as much as 45% on its first trading day last Friday. However, the stock appears to have quickly fizzled.
In the past two trading sessions, GEMI stock has plunged 34%, erasing most of the early gains that came from investors who seemed keen to buy shares of the crypto exchange run by twin brothers Tyler and Cameron Winklevoss.
Warning Sign
On social media, some commentators are claiming that the quick reversal in Gemini’s stock is a sign that the IPO market on Wall Street has hit a wall following several hot market debuts over the summer months. Others are taking the plunge in GEMI stock as a sign that the crypto market has become overheated.
Analysts on Wall Street seem less surprised by the fall in GEMI stock than investors, with many noting that the cryptocurrency exchange is not yet profitable, having posted a $283 million net loss in the first half of this year. Others note that Gemini is one of several publicly traded crypto exchanges following the recent IPO of Bullish (BLSH), along with established player Coinbase Global (COIN).
Is Bitcoin a Buy?
It’s too early for Wall Street firms to offer ratings and price targets on Gemini’s stock. So instead, we’ll look at the three-month performance of Bitcoin (BTC). As one can see in the chart below, the price of BTC has risen 7.35% in the last 12 weeks.
