Analysis: Gemini's 30% IPO allocation for retail investors may help it avoid the market risk of a "surge on the first day but unsustainable" stock price.

Huoxun Finance reported on September 13th that the share prices of several recently listed cryptocurrency stocks, including Bullish, Circle, and Figma, have retreated from their early highs, seemingly failing to overcome the market trend of first-day surges often failing to sustain. However, Gemini Space Station, a cryptocurrency platform that went public on Friday, reserved nearly 30% of its IPO shares for retail investors, far exceeding the traditional 6% allocation. The stock closed up 14% on its first day, at $32, giving the company a market capitalization of approximately $3.8 billion. Last month, the cryptocurrency exchange Bullish also allocated 20% of its shares to retail investors when it went public. Sources say a large retail allocation helped avoid even larger first-day surges. Analysts believe this trend reflects a rethinking of IPO pricing strategies. While seemingly positive, the first-day surges of several large IPOs this year meant that companies and early investors missed out on billions of dollars in financing opportunities. Wall Street bankers are attempting to mitigate this issue by increasing the retail allocation.