Stablecoin Giant Circle Successfully Lists on New York Stock Exchange, but Initial Investor Arca Discontent Due to “Unfair” IPO Stock Allocation
(Background: Circle (CRCL) Stock Surges Nearly 4 Times on Second Day of Listing!)
(Context: Analyzing the Power Play Behind USDC: Is Price the Only Challenge for Coinbase’s Acquisition of Circle?)
Stablecoin issuer Circle Internet Financial officially listed on the New York Stock Exchange (NYSE) on June 5, under the ticker symbol CRCL. On the second day of trading, the stock surged past $120, nearly quadrupling its listing price.
At first glance, early investors should be grinning from ear to ear, yet some early investors expressed dissatisfaction due to “buying too little.”
Arca Publicly Breaks Ties
Jeff Dorman, Chief Investment Officer at Arca, did not hide his disappointment and anger over the “buying too little,” publicly criticizing Circle’s leadership:
“Circle clearly prioritized traditional financial mutual funds and hedge funds that may have never used Circle products in the IPO allocation, showing no respect for the native institutions that have supported the crypto ecosystem for years. This practice is not only disappointing but also a betrayal of the entire crypto community.”
It is reported that Arca originally proposed a subscription amount of $10 million but ultimately received only $135,000 worth of shares.
Arca quickly took a series of countermeasures: not only did they immediately sell all allocated Circle shares, but they also closed all company accounts with Circle, transferring all funds to a competitor’s stablecoin, Tether (USDT), and called on cryptocurrency dealers to cease using Circle’s USDC stablecoin.
This has been interpreted by some in the community as a collective resistance signal from native crypto institutions against Circle’s alleged “betrayal.” However, one might wonder if such reactions would have occurred had Circle’s stock price not surged after its listing.
UPDATE. They did not.
In the spirit of transparency, Arca has sold its $CRCL shares. https://t.co/F37kxw77Ny
