The Boston-based crypto company, Circle is reportedly looking to sell its crowdfunding unit. The move is a direct result of the company’s focus on the Stablecoin business.
The Circle has made yet another headline. Previously, the firm appeared on top bulletins after spinning out of the Poloniex crypto trading platform which Circle had acquired in the year 2018 for $400 million. Moreover, it has successfully signed the sale agreement of its “over-the-counter trading desk” with Kraken exchange for approximately $1 million. However, the business saga of Circle didn’t end here. The platform is now looking out for an investor who can buy SeedInvest, Circle’s crowdfunding unit.
Circle acquired SeedInvest last year in March 2019. SeedInvest was meant to help organizations build funding power using their financial assets.
One of the internal sources of Circle commented that the crypto company is going through a tough time solving the lingering issues based on how the SeedInvest’s acquisition was made in March 2019. As a result, they are facing trouble finding a considerable investor who can purchase its crowdfunding unit.
Additionally, the source commented on Circle’s ruling out of the trading unit as the biggest blow for the crypto company. In 2018, the trading unit helped them build a total sum of $ 24 billion in the form of cryptocurrency.
Crypto Company’s Next Center – Stablecoins
You might think of what’s next for Circle when they have already eliminated its 3 working platforms! To answer your question, the crypto organization has already confirmed its upcoming plans on their website. They are now aiming for USDC – the Stablecoins.
The Stablecoin has already seen its high when its supply was doubled in 2019. The supply went on to reach $441 million.
Circle’s spokesperson Josh Hawkings mentioned that the organization is now aiming to build its availability of businesses with its commercial accounts. These accounts will provide a proper online environment for the local as well as international businesses to convert their investment in USDC into a convertible asset that can be used for payment purposes.
Adding to it, it was also mentioned by the spokesperson that the Stablecoins are still pretty new in the market. It will acquire good stability going forward and will soon be adopted by everyone.
Contradicting the comments submitted by the spokesperson of Circle, other sources believe that the USDC’s model of working will create a tough time for the organization. The hard game of launching USDC on the platform will guide a way for others in the same field to follow their steps to launch the Stablecoins on their respective platforms.
Looking at all the comments and reactions, it is clearly a longer and tougher task for Circle to unwind the existing ones and strategize for the new baby entering the business to get the same support from the followers.