Bitcoin Startup Circle Capitalization Could Reduce By More Than $2 Billion
According to The Block, an operator of the cryptocurrency exchange Poloniex, investment application Circle Invest and developer of stablecoin USDC – Boston startup Circle could lose more than $2 billion in capitalization.
As the publication notes, at the moment the company’s private shares are trading at $3.80 on Sharepost. It is not known how many shares are offered at this price and whether successful transactions have been made.
In may 2018, the price of Circle’s shares was $16.23 with a capitalization of $3.01 billion. If the current quotes on Sharepost reflect the real situation, the company’s value fluctuates around $705 million.
It was stressed that this development could be the result of a number of acquisitions in combination with the bear market.
Some market players noted that most of the company’s revenues are provided by OTC-service Circle Trade, trading volumes on which reached $24 billion in 2018. Focus on prop-trading, they say, complicates the objective assessment of the company at this stage.