Shambhavi Soni
Circle IPO’s new announcement about the merger with Concord Acquisition Corp has created a new buzz around the sombre crypto market. The crypto market has been a lot austere since China’s cryptocurrency crackdown. But this merger has given high hopes to investors and has eventually been successful in attracting fresh investments.
The merger witnessed a positive outlook in the cryptomarket with plenty of applause. In his statement to Cointelegraph Vladimir Vishnevskiy, director and co-founder of Swiss property management company St. Gotthard Fund management AG pointed out that Circle, the main provider of the USD Coin (USDC), which is the second-largest stablecoin by volume, “has been around since 2014.
More on Circle’s IPO
The whole crypto market may have been moving lately, but Circle has obviously gone ahead reducing the gap with stable coin leading Tether (USDT). It settled in $18.5 million in New York state attorney general in February because of a fiat collateral flaw in USDT support. “USDC has grown market share from 14.3 per cent to 22.5 per cent and is now in publication, as Circle will need to reveal the assets that support this USDC stable coin to regulators,” Vishnevskiy said,” said. Vishnevskiy.
The circle is presumably not surprised about the assets that support its currency.
The top-of-the-range accounting services firm Grant Thornton LLP, as has been widely publicised. Atteste the USDC US dollar reserves each month to ensure that USDC is always redeemed for dollars.
Some were nevertheless confused about the Circle’s decision to follow the SPAC route to public equity markets. SPACs are also referred to as blank checking businesses since the investors offer sponsors a free hand or a blank check in order to make a merger. They are an earlier means of raising funds than traditional IPOs. But occasionally, according to criticism, favour insiders at the expense of public investors.
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Stable coins and it’s further validation
“The crypto market may have cooled, but a lot of hot cash still remains, which remains a hot topic,” said Vishnevskiy. While Stephen McKeon, University of Oregon Finance Professor and Collab+Currency partner, explained to Cointelegraph, “There is further validation for the stable coin’s market and, importantly, for the service market.
“In the perspective of regulators and outside observers, I would like to see this event as another legitimisation to the industry,”. Vishnevskiy concluded and added that “the global regulatory crisis and pressure we observed are significant.