Hi HODLers and Hiveans,
What a week we've had! Musk and Trump fell out of love and are arguing online!
Circle just had a great IPO highlighting the crypto sector's attractivity for institutional investors.
This is a big milestone. I do not know what the future will bring but they are currently rocking it. Making multi billions of profit thanks to your cash being in USDC and earning nothing while they invest it in short US Treasuries for 3.75%+ APY! Easy money.
Coinbase uses USDC which is their biggest ally in the space. The split of revenues between Circle and Coinbase seems to be 50/50! So the biggest risk for Circle is a new competitor emerging and the future compression of margins.
Circle should give back some of these profits to partners such as Coinbase who hold the customer and to customer themselves. I wouldn't be surprise to see Consumer agencies attacking circle for keeping all the yield!
Summary:
Circle's stock price peaked at $123 on Friday, effectively quadrupling since its IPO yesterday.
Its first-day surge outpaces even tech darlings like Airbnb, which doubled its IPO price at launch in 2020.
Circle's market capitalization, however, is lower than those of such tech giants.
