The Winklevoss Twins trade now has a cryptocurrency of 30 billion dollars in custody as competition rages between major US stock exchanges.
In an announcement on 11 May, Oslo Børs attributed much of this year’s growth to strong demand from institutional customers:
“By tracking the astonishing growth of the cryptocurrency market this year and the increase in institutional investor participation, we have more than tripled our cryptocurrency since early 2021.”
Gemini works with senior asset managers, including BlockFi, Blockchange, CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors and WealthSimple.
The New York-based company was founded in 2014 by Cameron and Tyler Winklewos. Ahead of Coinbase’s direct listing on April 14 on the Nasdaq Stock Exchange, the Bloombergs said they “considered” listing Gemini on the stock exchange.
If Gemini, or any other major stock exchange, is listed, it could dramatically affect Coinbase’s stock price, which fell from $ 328.28 on the first trading day to $ 288.46 today.
Is Coinbase overvalued?
Experienced Wall Street analyst and New Constructs chief David Trainer said in a note to clients on Tuesday that he expects Coinbase’s share price to fall to $ 100 or even lower due to increased competition. Coinbase noted that Coinbase is currently overpriced and says that the current assessment means that it will exceed the total annual income of the Intercontinental Exchange and Nasdaq.
“Investors should expect the stock to continue to perform poorly, as it may fall to $ 100 or less, as the company is unlikely to meet future earnings expectations of the stock price.”
Coinbase is expected to post first-quarter earnings of $ 3.07 per share of $ 1.82 billion in trading on Thursday. Even if it exceeds expectations, according to Trainer, it will only attract more competitors and reduce future earnings.
“Coinbase is unlikely to be able to sustain huge profits in the future, as there is competition in the market,” he said.
In April, Trainer warned that Coinbase’s $ 100 billion valuation was too high due to fierce competition from Gemini, Bitstamp, Kraken and Binance.
Figures released in March show that Coinbase Custody will have over $ 90 billion in assets by the end of 2020.