The post Gemini to go Public! Should other Crypto Exchanges follow? appeared on BitcoinEthereumNews.com.

The recent 6 Feb report of Cameron and Winklevoss-backed, NY-headquartered crypto exchange Gemini considering an IPO in 2025 has once again put the limelight on the deliberations surrounding the ‘centralised crypto exchanges (CEXs) going public’. The positive scenario of crypto exchanges going public first caught significant public attention after one of the major crypto exchanges, Coinbase, went public via direct listing on April 14, 2021. The crypto world witnessed the spectacular financial market performance of Coinbase’s listing, right on the first day – with its stock (COIN) reaching as high as $429 -though it fell after it due to market volatility. The unprecedented surge in Coinbase’s user acquisition – reaching 110 mn in Q4 2022 from just 68 mn in Q2 2021 – further compliments the benefits accrued to Coinbase after it. The milestone set out by Coinbase in the crypto industry had opened up the queue to follow ups with other exchanges – recent being Gemini – considering a similar option. Coinbase Stock Price since its listing date till today. Click for more clear peek! How and Why should a Crypto Exchange like Gemini go public? Per se, a crypto exchange going public follows the same practice similar to that followed by traditional companies. Though presented with tough regulatory compliances, it can go public via three ways – IPO, Direct Listing and Special Purpose Acquisition Company (SPAC) – in which an exchange merges with a pre-listed shell company in order to avoid the traditional IPO process. The traditional benefits by going public remains the same for crypto exchanges too. Since exchanges usually rely on transaction fees as their major source of revenue, the substantial amount of funds that they raise in the process of going public can be utilised for further expansion, making acquisitions and technology upgrades in their…

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Filed under: News - @ February 9, 2025 12:10 am