Key highlights:
- Circle CEO Jeremy Allaire fancies his company’s long-term chances amid new competition from OpenUSD
- The Circle CEO criticized OpenUSD’s model while dispelling rumors of severing ties with Coinbase
- Following OpenUSD’s announcement, Circle stock slumped by double digits, but pundits dismissed it as a normal market reaction
Circle CEO Jeremy Allaire has downplayed claims that OpenUSD will spell the death of
Furthermore, the stock faced headwinds after losing its spot in several major Russell Growth Indexes. Circle failed to make the cut after an evaluation of its trading activity and growth prospects, with several funds holding CRCL via the indexes reducing their exposure.
While critics pointed to the falling stock prices as proof that Circle is beginning to tear at the seams, pundits say the decline is a “rational and realistic response” from the market. Lorenzo Valente, Director of Research at Ark Invest, noted that USDC and USDT will survive given their resilience forged after years of navigating uncharted territory.
“Circle and Tether are willing to absorb enormous pressure,” said Valente. “They have been doing so for years.”
Meanwhile, EU regulators have banned USDT from regulated exchanges in the bloc after Tether opted not to apply for mandatory e-money authorization.
Source:: Circle CEO Brushes Off OpenUSD Threat as Experts Predict USDC Resilience