From "dazzling IPO" to "massive layoffs to survive," crypto exchange Gemini (NASDAQ:GEMI) accomplished this transition in less than half a year, with its stock price plummeting nearly 90% from its peak.

To date, Gemini has cumulatively laid off approximately 30% of its workforce, leaving only 445 employees, and has gradually exited markets in the UK, EU, and Australia.

Cumulative losses for 2025 reached $585 million, with Q4 2025 revenue at approximately $60 million, yet losses continue to expand.

The core logic of exchanges is that revenue derives from trading volume. With the current market downturn and declining trading volumes, listed exchanges face high compliance costs, and fixed expenses cannot be reduced, causing losses to continuously expand.

It's not just Gemini that is retreating. Crypto.com is laying off staff, Kraken paused its IPO—all indicating that the exchange industry is entering a contraction and deleveraging phase.