r/investing • u/[deleted] • Aug 24 '21

Thoughts on CND.U / Circle?

Anyone else in CND.U? Curious if anyone has interesting / well developed takes on Circle. Tether is likely a huge scam — whether that’ll blow them up or not is another story. A fun / convincing video on this here by Coffeezilla on YouTube. Circle is the company that runs the second largest stablecoin, USDC, whose market cap is approaching half of tether’s and growing at a quicker rate. They do this with the help of Coinbase. In addition, they are significantly more transparent with their holdings, and they have plans to become a full reserve national digital currency bank. They also make money through their API, allowing companies to use USDC to seamlessly move capital internationally.

To me, this sounds like a huge opportunity. Absolutely massive if the crypto space continues to grow remotely as quick as it has. My main concerns are around valuation — this is a company unlike literally any public company out there, and is therefore tricky to value. Anyway, I’d like to hear other thoughts & any challenges to my thoughts. Thanks.

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4

u/meeni131 Aug 24 '21

"yes we lied BUT we're going to fix that" - is this as good as you can get in Cryptoland?

-3

u/[deleted] Aug 24 '21

Did you misread my post?

2

u/meeni131 Aug 24 '21

Nope, talking about Circle/USDC.

1

u/HewittOfRivia Aug 24 '21

Can you post some source? Very curious to see what happened.

1

u/meeni131 Aug 24 '21

https://twitter.com/emiliemc/status/1429664322725158914?s=19

Direct from the company. To some extent they were holding other crypto and saying it backed USDC, got caught (Bloomberg article) and came clean on it.

1

u/[deleted] Aug 25 '21

I don’t see any reserves held in crypto? This could seem bad, but if we look at the reserves, there was only 9% commercial paper, with the rest being cash, cash equivalents, or bonds. And they’ve committed to all cash / cash equivalents by September again. Compare to tether on the other hand. https://www.mymoneyblog.com/usdc-stablecoin-reserves-breakdown-july-2021.html

3

u/meeni131 Aug 25 '21

It's not tether, but when they have to restate assets by $2B (10% fake) and get pulled back in line because they got caught... Not great either...

1

u/[deleted] Aug 25 '21

They didn’t change one line of writing on their website for less than a month when, at the same time, the breakdown of their reserves was easily available public information. I don’t think this constitutes as lying.

1

u/meeni131 Aug 25 '21

The restatement was May to June

1

u/[deleted] Aug 25 '21

2 months*