Last week, under the leadership of Tyler and Cameron Winklevoss, the cryptocurrency exchange Gemini went public in the United States. The shares, listed on Nasdaq under the symbol GEMI, saw a stark decline, dropping below the initial public offering (IPO) price of $28.
Sharp Decline in Gemini Shares
Gemini began trading on September 12th, witnessing a brief surge before its share prices started trending downward. By Wednesday’s close, the stock had plummeted by 12.8% to $24.53. According to Yahoo Finance data, after-hours trading slightly recovered with a 2.1% increase. The current market capitalization of the company stands at approximately $2.9 billion.
A drop was also noted with other crypto-focused companies. Coinbase‘s shares closed with a 2.2% decline at $320.56, while Circle closed down 2.8% at $131.04. Nasdaq fell by 0.33%, and S&P 500 decreased by 0.1%, whereas the Dow Jones index rose by 0.57%. These movements followed the Federal Reserve’s decision to cut interest rates by 25 basis points to 4%.
Potential Settlement with SEC
Gemini’s public offering attracted attention in financial markets, while the company’s ongoing situation with the U.S. Securities and Exchange Commission (SEC) remained a focal point. According to court documents filed on Monday, a preliminary resolution was reportedly reached between SEC and Gemini Trust.
The SEC previously sued Gemini, alleging the exchange failed to meet regulatory obligations in its cryptocurrency lending program. The apparent proximity to an agreement potentially marks progress in a long-standing lawsuit, hinting at a reduction of uncertainties that could affect Gemini’s operations.
