Circle Faces Difficulties in Achieving Its' Grand Vision
March 04 2019 - 12:24PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
March 04, 2019 -- ADVFN Crypto NewsWire -- The current crypto
bear market has not spared anyone. According to an article posted
today by CoinDesk, Circle Internet Financial has publicly disclosed
its’ intention to raise $250 million more to counter the effect
that the bear market has had on its’ operations and
finances.
Upon hearing this, the likely
question on the tip of everyone’s tongues is: are they about to
start a massive round of layoffs akin to what Consensys employees
experienced at the end of 2018? Judging by what has been publicly
disclosed, there is nothing to suggest this will happen to Circle,
at least not yet.
What is more likely is that they
simply need more funding to continue operating all of their various
services and growing at the same time. In Circle’s case, this means
running and growing the Circle Invest app, doing the same with
Poloniex, which is now their in-house crypto exchange, and keeping
their USD coin “stable.”
Doing one of these things is not
easy. Doing all of them at once, while looking out for and pursuing
attractive investment opportunities as well, is even more
difficult. Achieving success while balancing all of these
considerations involves staying very liquid and thus having capital
that can be easily accessed as quickly as possible. Given the
gravity of the bear market that we are all still experiencing, it
is reasonable to expect that even Circle is hurting in this
respect, especially with regards to the value of their crypto
holdings.
Perhaps the main goal of their new
fundraising round will be to garner $250 million to quickly shift
to crypto and perhaps not. One particularly frightening possibility
would be that they were pushing to raise money quickly because
their USD coin’s reserves were suffering. Since their intentions
were just announced on Saturday, it is hard to tell what their main
motivation is at this point beyond simply surviving and thriving in
the midst of a crypto market downturn.
By: BGN Editorial Staff
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