Crypto IPOs Collapse as Gemini Plunges 90% in Market Rout

Nearly every cryptocurrency company that went public in 2025 has cratered, wiping out billions in shareholder value even as the S&P 500 climbed roughly 13%. Only two firms from a class of about 20 managed to avoid steep losses, exposing a widening gap between digital asset startups and traditional equity markets.

Gemini, the exchange founded by Tyler and Cameron Winklevoss, lost almost 90% of its value since listing last September. Its market capitalization collapsed from $3.3 billion to approximately $500 million, according to market data. BitGo, Bullish and eToro dropped between 55% and 65% from their offering prices. Figure, a blockchain mortgage lender, fell 19%.

Circle stands as the sole traditional initial public offering holding near its debut price. That stability traces entirely to a massive first-day surge in June 2025 rather than sustained buying pressure.

Companies that bypassed standard underwriting fared just as badly. Galaxy, led by Mike Novogratz, and tokenization platform Securitize both stumbled after going public via alternative routes. CoinShares dropped more than 50%. American Bitcoin, backed by Eric Trump, shed over 93% of its value. The single outlier is Hyperliquid Strategies, a treasury vehicle for the HYPE token, which jumped more than 200%.

The wreckage reflects structural problems beyond investor sentiment. Custody and basic trading have become commoditized services. Second-tier crypto firms now compete directly against Coinbase alongside major banks and established fintech companies with significantly larger balance sheets and distribution networks.

Underwriters pushed deals through during peak market enthusiasm earlier this year that institutional buyers would likely have rejected under stricter conditions. The result mirrors previous cycles where exchanges and infrastructure providers rushed to list before revenue models matured.

Payward, formerly known as Kraken, MetaMask and hardware wallet manufacturer Ledger have signaled plans to file for public offerings soon. MoonPay recently hired a chief financial officer, a move widely interpreted as preparation for a listing. Blockchain forensics firm Chainalysis also remains a potential candidate.

Broader industry developments continue to intersect with public market ambitions. Sam Altman’s World project rolled out a blockchain-based proof of human tool currently deployed by Zoom and Bain Capital, Fortune reported. An OpenAI agent breached a locked crypto wallet to access testnet tokens, according to Fortune. Fission, a startup supplying liquidity to tokenized assets, closed a $10 million funding round led by Pantera. Polymarket walked back earlier hints about issuing a token, Bloomberg reported. Meanwhile, crypto prices held steady despite choppy trading, supported by a weaker U.S. dollar and investors decoupling BTC and ETH valuations from technology stocks, the Wall Street Journal reported.