Recently, Circle conducted a successful initial public offering (IPO), however, this event was accompanied by another wave of criticism from crypto detective ZachXBT. In this article, we examine the key points related to Circle's IPO, the criticism directed at the company, and its interaction with Coinbase.
Overview of Circle's IPO and its Success
Circle conducted its IPO with an initial price below $40 per share, but within a month, the stock price soared above $300. At its peak valuation, the company was worth nearly $80 billion.
Criticism from ZachXBT and Other Allegations
ZachXBT once again highlighted the shortcomings in the company’s governance, noting that its leadership does not care about good practices in the industry. He pointed out a failure in Circle's actions regarding the freezing of USDC linked to hacking incidents, claiming the company reacted significantly slower compared to competitors like Tether.
Arthur Hayes' Position on the Coinbase-Circle Deal
Arthur Hayes, in turn, criticized the deal between Circle and Coinbase, arguing that Circle relies too heavily on Coinbase for its survival in the market. He noted that this dependency burdens the company and makes it vulnerable in a competitive environment, especially against Tether.
The criticism of Circle by ZachXBT and Arthur Hayes raises important questions regarding the company's transparency and stated objectives, namely - how accountable it is for its actions and its ability to maintain stability in the market.
