VOT Research Desk
The business that issued USDC Coin (USDC) said that recent events, including the demise of FTX and a move by rival exchange Binance, had caused it to miscalculate its revenue expectations.
Last week saw the fall of FTX, despite Binance’s announcement in September that it will automatically convert USDC to its own stablecoin Binance USD (BUSD).
In its amended S-4 registration statement, which was submitted to the US Securities and Exchange Commission (SEC) on November 14, Circle noted that its 2022 projection had been calculated incorrectly.
Before merging, acquiring another business, or making an exchange offer, companies must complete and submit an S-4 registration statement to the SEC.
The Company has suspended its services and transactions with the FTX Group and is in process of evaluating the impact on the provision of future services to the FTX Group and the potential indirect financial consequences, noting that they could not determine how much of a role Binance’s automatic conversions from USDC to BUSD played in the USDC’s decline in circulation.
In an 11-part Twitter thread on Nov. 9, Allaire acknowledged that Circle only has a small stock stake in FTX, which reflected “no substantial exposure” on the company’s balance sheet.
In addition, Allaire stated that “Circle has never given loans to FTX or Alameda, never accepted FTT as security, and has never traded or held positions in FTT.
