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According to information in The Block, the value of shares in Circle, a private cryptography company, has dropped dramatically over the past year.
Frostbite: A circle of Bitcoin unicorns suffers from a loss of value in the middle of crypto winter
Referring to a platform called SharesPost, the report states that the stock has gone from an opening price of 16.23 USD to 3.80 USD to date. SharesPost allows qualified investors to buy and sell shares of private companies.
Earlier, Tim Swanson, an R3 advisor, had tweeted that more and more big cryptocurrency companies were trading well below their most recent valuations in secondary markets.
at least a secondary market for private companies trades shares of well-known companies related to cryptocurrency (including stock exchanges) with significant discounts (~ 75%) compared to their peaks last year.
Is there an appropriate BTD for this?
– Tim Swanson (@ ofnumbers) February 4, 2019
Circle's previous record of $ 16.23 had been in his $ 110 million Series E round of fundraising. According to Crunchbase, this figure is well below that of all previous rounds, a combined $ 86 million.
Poloniex abandons after the acquisition of the circle
The unfortunate acquisition of Poloniex by Circle could play a role in the devaluation. Poloniex was once one of the main markets for altcoins, but has stagnated and declined since the acquisition, implying various KYC requirements that Poloniex had not previously applied.
Poloniex also ended margin trading for US customers, one of the most attractive features of the altcoin platform. The 24-hour volume for Poloniex at the time of publication was only $ 6 million. Meanwhile, Binance, one of the few Bitcoin exchanges with as many listings as Poloniex, has recorded a volume of more than half a billion dollars. Some markets of Poloniex are trading less than $ 10 in 24 hours.
Some markets are negotiating pitiful volumes, knowing that Poloniex remains one of the hundred largest exchanges.
Block's sources indicate that Circle's business model is "difficult to evaluate" in the same way as Bitcoin exchanges or conventional technology companies.
USD Coin Stablecoin goes well for Circle
One of the most interesting gambits of Circle is USD USD, which stands out from the competitors launched at the same time. Its use and market capitalization are higher than those of Paxos Standard and Gemini Dollar. It is important to note that, unlike the other two, this reporter has not yet received negative reports on the USDC's buyback or liquidity issues.
Circle recently stated in an article on his blog that three other companies – in addition to more than 100 exchanges – had joined the USDC ecosystem.
"These companies join the hundred or so exchanges, protocols, platforms, applications, portfolios and service providers that are part of the USDC's ecosystem. Since its launch in the fall of 2018, the USDC has grown rapidly: its market capitalization stands at over $ 300 million (including Circle's business) and it's This is the second largest stock market capitalization position. It is also one of the top 20 cryptographic badets. "
Of all the coins introduced in 2018, the USDC stands out as one of those who could actually attempt to challenge Tether in the long run.
Besides Poloniex, several factors are at stake in Circle's badessment. On the one hand, a globally downward market for crypto-currencies makes stormy seas for all related companies. Falling prices and the apparent decline in volatility in the Bitcoin markets mean that profits will inevitably fall. Circle claims to be relatively well behaved over the sustained bearish market of 2018, recording $ 24 billion in OTC dealings throughout the year.
Featured image of Shutterstock
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