The IPO of Circle recorded gains in its first days since the debut, confirming a continued credibility towards the crypto sector. Experts state that behind this success, there is a message of validation of stablecoins, regulatory transparency, and also of strong changes in the dynamics in the USA.
Circle IPO News: the important messages behind the bull of the first days of CRCL
Behind the success of the first days of the famous IPO (Initial Public Offering) of Circle, experts state that there is a confirmation of continued credibility towards the entire crypto sector.
To say it is Blake Player, commercial director of the crypto-exchange VALR, who then added as follows:
“It is also a good story for those large crypto companies that are pre-IPO, as it shows a clear path for investors in late-stage private companies to finally see an exit”
The IPO of Circle saw the participation of investors no longer niche, with the world’s largest asset manager BlackRock acquiring 10% of the IPO stock.
Martins Benkitis, CEO and co-founder of the Gravity Team, emphasized that the interesting thing about BlackRock’s participation is not the size of the capital invested but the message it is conveying.
“The fact that Blackrock takes a 10% stake signals confidence in the future of regulated and programmable dollars”
Other experts also state that the success of Circle’s IPO is indicative of changed dynamics in the United States, particularly since the approval of bitcoin Exchange-Traded Funds (ETF) at the beginning of 2024.
Circle IPO News: a validation of stablecoins?
Another aspect analyzed concerns the very nature of Circle’s flagship product: its stablecoin USD Coin (USDC).
In this regard, experts have emphasized how Circle has consistently prioritized strict compliance and regulatory adherence, compared to some stablecoin competitors.
An approach that perhaps slowed down USDC’s race to conquer new markets, but now seems to be becoming valid in the long term.
In view of what is happening in the USA, in trying to create a regulatory framework for stablecoins, Circle’s IPO seems to fit perfectly.
Andrei Grachev, managing partner of Falcon Finance, believes that the listing of Circle will actually help accelerate the enactment of laws regulating stablecoins. Here are his words:
“A stablecoin issuer listed and regulated by the SEC puts pressure on regulators to define the framework. You cannot ignore stablecoins when one of the main issuers is publishing quarterly results and is subject to investor scrutiny. It forces transparency and accelerates the need for clearer rules. Whether the outcome is bull or bear, this IPO pushes the conversation forward,”
The debut and the rise of CRLC
It was June 4th when Circle Internet Financial officially made its entrance to Wall Street with its IPO.
The company would have immediately raised 1.05 billion dollars through the sale of 34 million shares at the price of $31 each, exceeding the initial forecasts of $27-28 per share.
Only with its debut on the stock exchange, Circle has brought its overall valuation to approximately 8 billion dollars on a fully diluted basis.
In any case, the IPO of Circle immediately attracted the attention of investors, with a surge in the stock price that tripled the initial value.
In practice, the value of CRCL shares rose by over 200% on the first trading day, going from $31 to over $90. The rally then continued on the second trading day, with CRCL reaching a high of just over $120.
