The market for public offerings by crypto companies is experiencing a severe crisis. The vast majority of issuers that went public since mid-2025 are trading significantly below their debut prices. The worst performer is the Gemini exchange: its shares (GEMI) have crashed 89% from the opening price, falling from $37 to $4.19. This is an absolute anti-record among all recent crypto IPOs.
Scale of the Collapse: Who Lost the Most?
An analysis of the performance of six major recently listed crypto companies paints a grim picture. Counting from the opening price on the first trading day, Gemini's decline is just the tip of the iceberg. Custodial service BitGo (BTGO) lost 77% from its starting price of $22.43. Platform Bullish (BLSH) plunged 71% from the $90 mark. Even the relatively "successful" eToro (ETOR) dropped 42% from $69.69. Figure (FIGR) fared better with a 14% decline, and Circle (CRCL) fell only 6%.
However, an important clarification is needed. The picture changes dramatically when assessing performance from the IPO price, at which shares were sold to institutions before trading began. In this case, Circle shows impressive growth of 110% from $31, and Figure is up 24% from $25. This suggests that institutional investors in these cases received a significant discount, but retail buyers who entered on the first day still ended up in the red. The other four companies have yet to return to their offering prices.
Why Is This Happening and What's Next?
Such a widespread decline is no coincidence. It coincides with a prolonged correction across the entire crypto market, which began back in October 2025. Stocks tied to digital assets are falling in sync with the market, and the current negative trend leaves them no chance for recovery. This weak performance has already frozen plans for new offerings. Kraken, Grayscale, Consensys, and Ledger have postponed their IPOs indefinitely, awaiting market stabilization.
My analysis: The current situation is a classic "bear trap" for those who bought crypto stocks on the first-day hype. The market is clearly signaling that the high volatility of the underlying asset (cryptocurrencies) makes these securities extremely risky. Until Bitcoin and Ether find a sustainable bottom, a resumption of new IPOs and a return to offering prices for most companies are unlikely. Investors should prepare for a prolonged period of consolidation.