Gemini Stock (GEMI) Plummets 14% as Post-IPO Reality Bites

GEMI nosedives as market euphoria evaporates—another crypto darling learns Wall Street's harsh lessons.

Post-IPO Hangover Hits Hard

Investors dumped shares relentlessly after the initial frenzy faded. The 14% collapse signals growing skepticism about crypto exchange valuations in traditional markets. Trading volumes spiked as early backers raced for exits.

Market Psychology Shifts

Retail enthusiasm couldn't sustain the artificial IPO premium. Analysts point to compressed margins and regulatory headwinds as fundamental concerns outweigh speculative momentum. The 'crypto premium' appears to be discounting faster than expected.

Institutional Cold Feet

Big money stayed on sidelines while retail piled in—classic pattern repeating. One fund manager quipped: 'We'll buy when they're desperate, not when they're euphoric.' Because nothing says sustainable growth like a 14% single-day haircut.

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On Sept. 16, GEMI stock plunged 14% to close the trading session at $28.13 per share. The stock is now back at its IPO price of $28. It’s been a quick reversal for Gemini, whose stock ROSE by as much as 45% on its first trading day last Friday. However, the stock appears to have quickly fizzled.

In the past two trading sessions, GEMI stock has plunged 34%, erasing most of the early gains that came from investors who seemed keen to buy shares of the crypto exchange run by twin brothers Tyler and Cameron Winklevoss.

Warning Sign

On social media, some commentators are claiming that the quick reversal in Gemini’s stock is a sign that the IPO market on Wall Street has hit a wall following several hot market debuts over the summer months. Others are taking the plunge in GEMI stock as a sign that the crypto market has become overheated.

Analysts on Wall Street seem less surprised by the fall in GEMI stock than investors, with many noting that the cryptocurrency exchange is not yet profitable, having posted a $283 million net loss in the first half of this year. Others note that Gemini is one of several publicly traded crypto exchanges following the recent IPO of Bullish (BLSH), along with established player Coinbase Global (COIN).

Is Bitcoin a Buy?

It’s too early for Wall Street firms to offer ratings and price targets on Gemini’s stock. So instead, we’ll look at the three-month performance of Bitcoin (BTC). As one can see in the chart below, the price of BTC has risen 7.35% in the last 12 weeks.