Stablecoin Issuer Circle Soars 168% In IPO Debut (cnbc.com) 14
Circle Internet Group surged 168% in its NYSE debut, raising nearly $1.1 billion after pricing its IPO at $31 and opening at $69. "At one point, shares traded as high as $103.75," notes CNBC. From the report: The New York-based company priced its IPO late Wednesday far above this week's expected range of $27 to $28, and an initial range last week of between $24 and $26, valuing the company at some $6.8 billion before trading began. Trading volume by the end of the session was about 46 million, far exceeding the number of freely floating shares available for trading.
Circle joins Coinbase, Mara Holdings and Riot Platforms as one of the few pure-play crypto companies to list in the U.S. This marks the company's second attempt at going public. A prior merger with a special purpose acquisition company collapsed in late 2022 amid regulatory challenges. "To realize our vision, we needed to forge relationships with governments, we needed to work with policymakers ... because if you want this to work for mainstream, it's got to work in mainstream society and you need to have those rules of the road," CEO Jeremy Allaire told CNBC's "Money Movers" on Thursday. "We've been one of the most licensed, regulated, compliant, transparent companies in the entire history of this industry, and that's served us well."
Circle joins Coinbase, Mara Holdings and Riot Platforms as one of the few pure-play crypto companies to list in the U.S. This marks the company's second attempt at going public. A prior merger with a special purpose acquisition company collapsed in late 2022 amid regulatory challenges. "To realize our vision, we needed to forge relationships with governments, we needed to work with policymakers ... because if you want this to work for mainstream, it's got to work in mainstream society and you need to have those rules of the road," CEO Jeremy Allaire told CNBC's "Money Movers" on Thursday. "We've been one of the most licensed, regulated, compliant, transparent companies in the entire history of this industry, and that's served us well."
Someone lost out (Score:1)
When an IPO is under-priced, the insiders that get to buy at the IPO price gain at the expense of the company issuing the IPO.
The company would've been better if the IPO price was close to the opening price of $69.
Re:Someone lost out (not) (Score:2)
That's ... not really accurate or how an IPO/opening cross works. The point is immediate liquidity for the listing company while the initial investors hold the bag and more slowly sell shares according to market demand. Read on for details:
IPO price is decided between the company and the underwriters. Too high and there's risk to the underwriters/investors losing money facilitating the IPO. Too low and the company leaves money on the table. This process guarantees the company an immediate cash return o
It could be sillier (Score:3, Funny)
Adopt the leaf as legal tender.
Naming (Score:4, Funny)
Stablecoin? So, literally a bunch of horse sh*t ???
Re: (Score:2)
Yep. But people are stupid and mistake names for descriptions.
Re: (Score:2)
There's a spectrum of BS. A good read on the subject: One of these stablecoins is not like the others [dirtybubblemedia.com]
At least at the time of writing in 2022, USDC (the coin issued by Circle) was on the better side of that spectrum.
Current Stage: The Great Grift (Score:3, Informative)
The grand master plan of crypto
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: create a new form of currency, and for it a new financial system detached from traditional ones (those burdened by "governments and regulations") - they called it "DeFi" for "Decentralized Finance", but its dirty little secret is that it's really "Deregulated Finance".
Their plan is to make this new money be adopted by the masses, so they start it off with a low price, then gradually increase it, by virtue of them just pulling numbers out of thin air for its value, until it catches the attention of the masses - then it gets more and more "valuable" from the collective faith of its given value ("network effect"), until traditional institutions and the typical "1%" billionaires start to notice and, greedy as they are, want in on the action too.
So now those that got in at the ground floor have gained all this "value" out of thin air, and once they're ready, they'll pull out all pretty much at once ("rug pull") - that it'll create a sell-off panic, and a new meltdown is born! And because of their "De[regulated]Fi" system, the bros have already shifted all the risks away from themselves onto others, so they'll make out like bandits, leaving everyone else to "hodl" the bag.
But the bros were really observant about that last meltdown - and noticed all the "bailouts" the big banks got - so as they were shifting the risks to others, they increased their investments into what would get the next bailouts - so in the end they'll make out like bandits twice: the first time from suckering everyone else into their pump-and-dump scam, and again once they benefit from the bailouts that'll get handed out.
And there you have it folks, the real master plan of crypto.
--
"Cryptocurrencies will bring about a worse financial meltdown than the one they were born from." -Prof. Feynman
Incoherent (Score:4, Insightful)
"We've been one of the most licensed, regulated, compliant, transparent companies in the entire history of this industry, and that's served us well."
Funny, someone was trying to tell me it was the lack of regulation that makes crypto so special...
I got one word for you kid, fraud (Score:2)
Suckers born every minute (Score:2)
Who does the pegging? (Score:2)