Circle’s CEO Affirms That Business Might Be Down, But Stablecoins With Transparency Will Survive
Jeremy Allaire, the CEO of and co-founder of Circle, a crypto payments company, has recently been interview by The Ledger, a program Fortune has created to talk about the crypto world. Circle is a Boston-based company which bought Poloniex last year for around $400 million USD.
In the interview, Allaire talked about the bear market and how it is affecting the crypto industry. According to him, business is down. When the volatility is not high or the prices are not very good (two things which are happening right now), the trading volumes get down too because people are interested in trading.
Trading in Poloniex is not going as well as expected since the bear market has just disappointed a lot of investors at the moment and sectors like the over the counter (OTC) market are not seeing their best times.
However, besides all the issues which are happening right now, Allaire is confident that Circle still has a good future set up for itself. According to the CEO, the company has grown a lot last year despite the bear market, so there is still space for growth even in a bear market.
He also talked about the valuation of Circle. According to Allaire, the company was valued in at least $3 billion USD back in May 2018 during a round led by the Chinese mining company Bitmain.
Crypto prices have plummeted since then, though, which has impacted the overall price of the company. This has affected the price of the shares in the secondary market. It was suggested by some media outlets focused in the crypto industry, specifically The Block Crypto, that the value ofthe company was less than one billion USD right now.
During the interview, Jeremy Allaire said that he wasn’t going to comment on specific prices but affirmed that it was inaccurate to say that the company lost so much value and that just because a person decides to list shares in a secondary market, this does not actually mean that this is their real value.
Plans for the Future And Facebook As An Adversary
The CEO obviously has a lot of plans for the future. Growth is expected as soon as the bear market ends, but obviously Circle could not simply sit and wait until the market changes, which has led the CEO to invest in growth.
For instance, the company has recently acquired SeedInvest, an equite crowdfunding company. The acquisition was made this month and the main reason for buying the company was to finally be able to break into the space of issuing securities and selling their tokenized counterparts using the blockchain technology.
Allaire has affirmed that the company is looking for new and exciting ways to benefit from the issuance of digital assets and crytpos and that it will offer a lot more in this area in the near future.
The CEO also talked about Facebook and Facebook Coin during the interview. USD Coin is currently the second most popular cryptocurrency that you can find in the market, only losing to Tether. Because of this, Allaire was asked whether he felt threatened by Facebook Coin, which is set to be a stablecoin.
He did not feel threatened and affirmed that it is great that the big companies are starting to enter the game. This, he believes, was very positive for the industry overall. According to Jeremy Allaire, the stablecoins with open standards will always prevail, so he does not feel endangered by Facebook at all.
This is an important point as Facebook Coin will probably be focused on the platforms which are owned by Facebook already, while an open token could be used anywhere and, therefore, it would be far more useful. Facebook Coin could work as an entrance door to the crypto world, though.
The Winklevoss brothers have recently echoed Allaire’s position, as they believe that the Facebook Coin will be something that will be good for cryptos. This would bring attention to the industry and there is surely space for more than a single actor within it.
JPMorgan Chase, for instance, has recently launched JPM Coin, which is not interoperable and the token was criticized because of this. These coins may be important and even interesting for the industry, however, they are also very useful outside of their main use cases.