Gemini’s Q2 revenue rose 37% to $45.5 million, but when you look at the earnings report, exchange revenue actually fell 38%—they had to prop it up entirely with the credit card business. The market forecasts doubled, but that’s only an extra $0.5 million in revenue—barely enough to fill the gap.
In plain terms, these legacy exchanges are pivoting into consumer finance, making money from “slowly boiling a frog.” Next time there’s a bull market, don’t just brag about exchange trading volumes—see whether they have new lines of business that can actually generate cash flow.
Gossip aside, when choosing a platform, you still need to focus on the cash flow structure and not be fooled by the storefront branding.
In plain terms, these legacy exchanges are pivoting into consumer finance, making money from “slowly boiling a frog.” Next time there’s a bull market, don’t just brag about exchange trading volumes—see whether they have new lines of business that can actually generate cash flow.
Gossip aside, when choosing a platform, you still need to focus on the cash flow structure and not be fooled by the storefront branding.