On one hand, the bearish market let major crypto businesses decide on layoffs, on the other hand, there is one clear standout with well-performing business. In a recent interview with the Fortune media, Circle CEO, Jeremy Allaire proudly claims that his company is growing while cryptocurrency business in fall.
Circle – Cryptocurrency Business Is Down But We’re Still Growing
Circle, which acquired Poloniex exchange back in 2018 for around $400 million, is running with significant growth despite the persistent downward market. However, the business is majorly associated with the market activity but Circle’s performance is continued to mark big volume. Allaire says that the bearish market for Circle is just ‘fine’ mentioning that the customer base the volume of revenue has grown at the same time.
“Well, [business] is down, When there’s not volatility, or prices are down, then volumes are down,” Jeremy said. “We had very significant growth year last year, even though there was a crypto bear market.”
The release comes in a wake of Bithumb’s lay off announcement. While Circle trading platform claimed its growing performance, Bithumb, in contrast, has announced to lay off 50% of its staff – reportedly the exchange has been in an effort to eradicate the cost and thus laying off 160 employees.
“Voluntary retirement is part of our support program for former employees and is intended to provide assistance and training for job placement. Apart from that, [Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses.”
Moreover, while questioning the recent declining evaluation of Circle reported by few sources, Allaire disagrees with the context. As such, few reports revealed that Circles valuation declined to less than $1billion but Allaire sticks to his confident view on growing graph of Circle’s evaluation. Particularly, sources pointed out that the private shares in Circle are trading with discounted value on the secondary market – responding to the question, Allaire said that;
Just because someone lists shares on a market, “that doesn’t mean they’re actually trading.”. Furthermore, he said, “I can’t comment on specific transactions or specific prices or things like that, but the way that was characterized was inaccurate,”
Besides calling the ‘declining evaluation report’ as rumors, Circle CEO also said that he doesn’t fear with upcoming coin from a social media giant, Facebook – which is said to be a stable coin. It was, however, reported that the Circle in partnership with Coinbase has launched dollar-pegged stablecoin, USD Coin which is now the second most popular stablecoin in the market. Talking about what he feels about Facebook’s entry into stable coin market, Allaire answered that Facebook’s Coin is a great sign.
“I think it’s a great sign that major Internet companies are starting to look at issuing cryptocurrencies,” Allaire said. “That’s very, very positive in our view overall.”