Publicly traded crypto exchange Gemini (GEMI) is closing shop in the United Kingdom, European Union, and Australia and cutting a quarter of its employees, the firm announced on Thursday.
The move aims to reduce Gemini’s operating expenses and improve its path to profitability, while allowing it to “focus” on what it said are clearer opportunities like prediction markets.
“These foreign markets have proven hard to win in for various reasons and we find ourselves stretched thin with a level of organizational and operational complexity that drives our cost structure up and slows us down,” they added. “And we don’t have the demand in these regions to justify them.”
The firm’s operations in the markets will slowly phase out over the next two months, with all accounts being closed on April 6. Those with balances will be moved into “withdrawal only” mode on March 5, and any users who wish to transfer balances to eToro can do so via a partnership between the firms.
Alongside the account closures, Gemini also announced that it was reducing its head count by 25% as it leans into artificial intelligence (AI) to help drive efficiency gains. With a leaner team in fewer geographic markets, the firm’s focus will shift to its prediction market offering and the American crypto market.
“Our thesis is that prediction markets will be as big or bigger than today’s capital markets,” the firm’s founders wrote. “They offer a profound and boundless opportunity to leverage the wisdom of the crowds and power of markets to provide unique insights into the future.”
