Gemini Shares Fall Below IPO Price After False Start on Wall Street
Date: 2025-09-19 Author: Henry Casey Categories: BUSINESS
Shares of Gemini Space Station, the cryptocurrency exchange founded by brothers Tyler and Cameron Winklevoss, fell below their IPO price just days after their US debut. Initially offered at $28, the shares fell 12.8% by midweek, closing at $24.53. The stock recovered slightly during the after-market session, gaining 2.1%. The company's market value ultimately fell to $2.9 billion.
The situation was further complicated by a general decline in investor interest in cryptocurrency assets. According to The Block, Coinbase shares fell 2.2%, closing at $320.56, while Circle shares lost 2.8%, closing at $131.04. The Nasdaq Composite Index fell 0.33%, while the S&P 500 declined 0.1%. The Dow Jones Industrial Average was the exception, gaining 0.57%.
This market movement coincided with the US Federal Reserve's announcement to cut its benchmark interest rate by 25 basis points. The regulator's decision was met with mixed reactions: investors expected more aggressive steps to support the economy, but the reaction was muted.
In addition to pressure from macroeconomic factors, Gemini's position was also affected by the ongoing dispute with US regulators. Earlier this week, the court received information that Gemini Trust and the US Securities and Exchange Commission had reached an "agreement in principle" to settle the claims. The SEC previously alleged that the company violated regulations when launching its crypto lending program.
For Gemini, the drop in its stock price was a test immediately after its long-awaited market launch. Despite the Winklevosses' ambitious plans, the exchange faced pressure from competitors and regulators, as well as an unfavorable situation in the stock and cryptocurrency markets. Experts believe that future performance will depend both on the outcome of the settlement with the SEC and the company's ability to maintain investor confidence amid the sector's high volatility.
Thus, the first few days of trading for Gemini were revealing: market expectations failed to match reality, while regulatory uncertainty and fluctuations in the cryptocurrency market increased pressure on the stock. In the coming weeks, market participants will focus on whether the exchange can stabilize its stock price and prove the sustainability of its business model.
