The Winklevoss twins’ twin exchange now has $ 30 billion worth of cryptocurrency in custodyas competition intensifies between major stock exchanges in the United States.
In a statement on May 11thThe exchange attributed much of this year’s growth to strong demand from institutional clients::
“After the impressive growth of the cryptocurrency market this year and the increasing participation of institutional investors, we have more than tripled our cryptocurrencies in custody since early 2021.”
Gemini works with major asset managers such as 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 Winklevoss.. Ahead of Coinbase’s direct listing on the Nasdaq on April 14, the brothers announced to Bloomberg that they would also consider bringing Gemini public.
If Gemini or any other major exchange went public, it could have a significant impact on Coinbase’s share price.which has fallen from $ 328.28 on the first day of trading to $ 288.46 today.
Is Coinbase Overrated?
David Trainer, a veteran Wall Street analyst and CEO of New Constructs, shared this with clients in a note Tuesday expects Coinbase’s share price to drop to $ 100 or even less due to increased competition. The trainer suggested that Coinbase is currently overratedwhereas the current valuation implies that the combined annual sales of Intercontinental Exchange and Nasdaq will be exceeded.
“Investors should expect stocks to continue to underperform as stocks could fall to $ 100 or less as it turns out the company is unlikely to meet future earnings expectations that are included in the price of the measures.”
Coinbase is expected to post earnings of $ 3.07 per share on Thursday on revenue of $ 1.82 billion on Thursday.. Trainer said even if it exceeded expectations it would only attract more competitors and reduce future revenue.
“Coinbase is unlikely to be able to generate extraordinary profits in the future when competition comes into the market.”, He said.
In April, Trainer warned that Coinbase’s $ 100 billion valuation was too high due to increased competition from Gemini, Bitstamp, Kraken and Binance.
The numbers released in March suggest this Coinbase Custody had over $ 90 billion in custody by the end of 2020.