Borderless CEO: Circle IPO faces high cost pressure, the stablecoin market has become commoditized
According to The Block, Borderless CEO Kevin Lehtiniitty expressed concern about Circle's IPO prospects. Data shows that Circle's net profit in 2024 was $155.7 million, a decrease of 42% compared to the same period last year, forming a stark contrast with Tether's profit of $13 billion during the same period.
Kevin Lehtiniitty, CEO of Borderless.xyz pointed out that Circle’s high expenditure on compliance operations could affect its profitability. In 2024, Circle paid only $908 million in fees to its main distribution partner Coinbase for maintaining USDC circulation.
As a veteran in the stablecoin field, Lehtiniitty believes that the stablecoin market has become commoditized and Circle lacks unique advantages. He stated that newcomers like PayPal and World Liberty may pose challenges to Circle with their unique distribution channel advantages.
Earlier news reported that Circle submitted an S-1 file to the U.S. SEC intending to list on NYSE.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitmine Buys 9,587 ETH as Holdings Near 5% of Ethereum Supply
Ekopak Expands Wastewater Treatment Plant at Mark Anthony Brewing
Vodafone (VOD.US) Swings to Loss in First Half, German Operations Major Drag
Vodafone (VOD.US) released its financial results for the first half of fiscal year 2027.
AI gamble backfires! Data center project writedowns and weak tech stock positions drag down SoftBank (SFTBY.US) to a Q2 loss of $7.1 billion
SoftBank recorded its first net loss in nearly two years due to a $3.7 billion impairment loss arising from a U.S. data center project, coupled with mounting market concerns over the sustainability of artificial intelligence (AI) growth impacting the investment giant’s key holdings.
Crypto prices
More
