Frank Holmes
Crypto SWOT: Circle Internet Financial is considering going public in early 2024
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was FTT, rising 197.31%.
- It took just over 18 months, but Bitcoin is finally back to where it traded before the event that precipitated the last crypto crash, reports Bloomberg. Bitcoin rose as much as 3.9% to reach $36,900 on Thursday.
- Monthly spot trading volumes on centralized cryptocurrency exchanges recorded their first increase in four months, jumping 87.2% to $632 billion in October. This was the largest monthly increase recorded since January 2021, when the industry’s last bull market got underway, writes Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Tether Gold, down 2.35%.
- JPMorgan expressed doubt about the sustainability of the recent crypto market surge, stating that the “crypto rally looks overdone,” according to Bloomberg.
- Michael Novogratz doesn’t expect U.S. lawmakers to make headway on regulating the crypto sector before the 2024 election, according to Bloomberg.
Opportunities
- HSBC Holdings plans to offer institutional clients a custody service for digital assets such as tokenized securities, the bank’s latest move in the new area of finance. HSBC will work with Ripple Labs, owned by technology firm Metaco, on the safekeeping services, writes Bloomberg.
- Circle Internet Financial, the issuer of USDC stablecoin, is considering going public early in 2024. The company is talking to advisers as it prepares for a potential IPO, according to Bloomberg.
- JPMorgan Chase’s JPM Coin now allows clients to program their accounts by plugging in a set of key conditions, enabling them to move funds to cover overdue payments and margin calls. Further down the line it may help them seize on differences in exchange rates, writes Bloomberg.
Threats
- Indian authorities have arrested eight people in India where a $300 million crypto scam that duped around 100,000 people continues to unravel. Four cops were among those arrested, writes Bloomberg.
- Ava Labs, the developer of blockchain project Avalanche, cut jobs by 12% in the latest round of layoffs to hit the cryptocurrency sector, writes Bloomberg.
- The top 13 public crypto-mining companies sold the equivalent of all the Bitcoin they minted in October, plus a little more, while the digital asset posted one of its biggest rallies since token prices crashed last year, writes Bloomberg.
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