Jeremy Allaire refutes allegations Circle is on the brink of insolvency

Circle CEO Jeremy Allaire connected July 2 posted a Twitter thread responding to unfounded allegations that Circle is floundering amid the challenging marketplace conditions.

In debunking the claims, Allaire said Circle is successful the “strongest presumption it has ever been successful financially.” Commenting connected the caller MiCA framework, successful which EU lawmakers agreed to instrumentality rigid caller rules for stablecoin issuers, Allaire said helium welcomed the move, adding that it volition supply much-needed user assurance successful “issuers similar Circle.”

8/ Circle is successful the strongest presumption it has ever been successful financially, and we volition proceed to summation our transparency. FWIW, we are besides encouraged by emerging regulatory frameworks for stablecoin issuers, which should assistance further summation assurance successful issuers similar Circle.

— Jeremy Allaire (@jerallaire) July 2, 2022

Circle brag addresses allegations

Recently, FUD surrounding Circle has been mounting. For example, connected June 18, the laminitis of the Daily Gwei newsletter, Anthony Sassano, said Circle tin frost USDC “in immoderate code astatine immoderate clip for immoderate reason.”

Allaire said Sassano’s claims were inaccurate and unhelpful FUD, referring observers to a blog post dated May 2022, which fundamentally disclosed that morganatic users person thing to fear.

Fast guardant to now, and successful addressing caller allegations that each is not good astatine Circle, Allaire posted a bid of links to blog posts addressing issues to bash with transparency, audits, and liquidity.

Allaire said helium understands that immoderate whitethorn consciousness paranoid “given the past of hucksters successful crypto.” But helium assured users that Circle holds itself to the highest standards.

Allaire says we person zero issues

The spark for Allaire’s tweet thread was the emergence of unfounded claims that Circle is “at large risk” of defaulting.

Twitter idiosyncratic @CryptoInsider23 made the claims based connected Circle’s SPAC IPO filings, concluding that “something dirtier [is] happening underneath.”

Circle's USDC strategy is connected the brink of collapse. If you work their SPAC IPO filings its wide they person been losing wealth perpetually but theres thing dirtier happening underneath. They're astatine large hazard connected defaulting connected USDC reserves. A heavy dive connected USDC. pic.twitter.com/GgN5oeD7gO

— Geralt Davidson (@CryptoInsider23) June 29, 2022

@CryptoInsider23 alleged that Circle’s incentives exemplary leads to losses, which are paid for by superior raises. And that the institution is “on way to suffer 1.5B successful 2022.”

It’s besides alleged that users’ USDC deposits are handled akin to however banks bash fractional reserve banking and lent retired via an offshore Bermuda-based company, to flight U.S. regulatory oversight.

In response, Allaire said Circle is over-collateralized and USDC is lone lent to accredited investors, (presumably via authoritative means). He signed disconnected the tweet saying the institution has “zero issues.”

7/ On the past constituent re: Circle Yield, we volition stock a blog station this week, but the essence is that due to the fact that Circle Yield is regulated, over-collateralized, offered arsenic a information to lone accredited investors, and has a precise blimpish UW approach, we person had zero issues.

— Jeremy Allaire (@jerallaire) July 2, 2022

The station Jeremy Allaire refutes allegations Circle is connected the brink of insolvency appeared archetypal connected CryptoSlate.