Jeremy Allaire Welcomes Facebook Coin as a Need Competition and Alternative Approach in the Cryptocurrency marketMarch 19, 2019
Jeremy Allaire, candidly admits to the downturn in the cryptocurrency due to the overall downturn in the cryptocurrency market.
Circle bought Poloniex for nearly $400 million in the past year. The bear market according to the Chief Executive of Circle did loosen the interest of investors. The over-the-counter cryptocurrency trading business used to be the money maker for the firm historically.
Allaire recently stated “Well, business is down,” further added, “When there’s not volatility, or prices are down, then volumes are down.”
While Allaire contends that the company has survived the weather in the cryptocurrency market he mentions that there is a decline in the customer base and revenue of the company stating, “We had very significant growth year last year, even though there was a crypto bear market.”
The private value for crypto was at $3 billion. This valuation was during the last venture capital raising activity of the company past May. The valuation was done by Bitmain, the China-based cryptocurrency “mining” giant.
The private shares of Circle were trading in the secondary market for deeper discounts. A cryptocurrency news outlet recently stated that the Valuation of Circle had gone down to less than $1 billion.
When talking about the decline in the valuation of the company, Allaire stated, “I can’t comment on specific transactions or specific prices or things like that, but the way that was characterized was inaccurate,” He clarified that just because someone is listed on the shares in the market, it need not mean that they are actually trading.
Allaire when talking about their plans ahead stated that selling tokenized securities, and working on investment contracts, which are encoded on the blockchain will be the major business. He said, “We’re going to look at ways that we can bring the benefits of digital assets, crypto technologies, and blockchains into this whole area of issuing securities over the internet.”
Being the issuer of the USD coin, one of the popular stable coin Allaire was questioned about his fear about Facebook as a competitor. Allaire stated that he welcomed the competition from Facebook and stated that he did not fear Facebook. He stated, “I think it’s a great sign that major Internet companies are starting to look at issuing cryptocurrencies,” Further added, “That’s very, very positive in our view overall.”
Allaire concluded stating that Facebook entering the market is an alternative approach, which according to him will be very successful than just a single company that will issue currencies.