Gemini secretly submitted an application for an IPO in the United States. What are the considerations behind this?

Recently, according to Bloomberg, Gemini, a cryptocurrency trading platform supported by Winklevoss brothers, has secretly submitted an IPO application and is working with Goldman Sachs and Citi to promote it. This move has attracted widespread attention and may contain many considerations behind it.

Founded in 2014, Gemini is headquartered in New York and regulated by the New York State Financial Services Agency. Founded by twin brothers Taylor and Cameron Winklevos, it aims to build a convenient and elegant cryptocurrency trading and storage platform. It currently has about 13 million registered users and daily transaction volume of US$190 million.

Gemini's secret submission of IPO application may be related to changes in the regulatory environment. In January, Gemini reached a $5 million settlement with the U.S. Commodity Futures Trading Commission (CFTC). Subsequently, the Securities and Exchange Commission (SEC) terminated its investigation and took no action. This series of events has cleared some obstacles for Gemini's road to listing, making it expected to further develop with the help of IPO in a relatively relaxed regulatory environment.

From a market perspective, the cryptocurrency market has developed rapidly in recent years. Although there are fluctuations, it has huge potential. As a well-known cryptocurrency trading platform, Gemini has a huge user base and high market visibility. Listing through IPOs can attract more investors in traditional financial markets, broaden the source of funds, enhance financial strength, and enhance market competitiveness.

In terms of industry competition, there are many cryptocurrency trading platforms and fierce competition. Competitors such as Coinbase have successfully listed, with an advantage in market share and brand influence. Through IPO, Gemini can enhance its brand image, compete with competitors for market share, and consolidate its position in the cryptocurrency trading field.

The secret submission mechanism of IPO also provides convenience for Gemini. This mechanism allows enterprises not to disclose the application documents for the initial public offering to securities regulatory agencies. The regulatory agencies will review and submit inquiries and opinions. The issuer may revise the draft based on this, and all inquiries and replies will not be disclosed to the public. This has gained enough time window for Gemini, allowing it to flexibly adjust its listing strategy, better respond to market volatility and challenges, and reduce the risks of listing competition.

Judging from Gemini's own business development, listing will help it expand its business scope. Raising funds can be invested in technology research and development, improving the security and stability of the trading platform, and optimizing user trading experience. It can also help it expand its global business, attract more international users and institutional investors, and achieve an international strategic layout.

In addition, Gemini's listing is of great significance to the entire cryptocurrency industry. If Gemini is successfully listed, it will set an example for other cryptocurrency companies, promote more cryptocurrency companies to seek listing, promote the integration of the cryptocurrency industry with traditional financial markets, and enhance the recognition and influence of the cryptocurrency industry in the financial field.