Jeff Dorman, chief investment officer of Arca, expressed dissatisfaction with Circle's recent IPO allocation of just $135,000 out of a $10 million order.
Criticism from Jeff Dorman
In an open letter posted on social media, Dorman accused Circle's leadership of poor judgment, calling the allocation 'inappropriate' and announcing the closure of all Arca's accounts with Circle.
Details of Arca's Complaint
According to Dorman, Arca was granted only a $135,000 participation in its $10 million order. He noted that Arca was one of the first entities to make an offer. The executive stated that the firm was one of Circle's earliest backers and held steady even amid rumors of Circle delaying its IPO plans.
Impact on Partnership
Dorman also stated that Arca would close all accounts with Circle and discourage other firms from partnering with the stablecoin giant. He expressed disbelief at how their years of support for Circle ended in an unsatisfactory outcome.
The situation between Circle and Arca raises questions about future partnerships and the treatment of early investors in the rapidly changing cryptocurrency landscape.
