Circle IPO Sparks Controversy: Native Encryption Institutions Being Neglected Causes Industry Discontent

Recently, USDC stablecoin issuer Circle completed its initial public offering ( IPO ), but its allocation process has sparked widespread controversy within the encryption industry. Industry insiders criticize Circle for favoring traditional financial institutions in the IPO allocation, neglecting long-term supporting native participants in encryption, and deviating from the core principles of the encryption industry.

Circle's IPO is priced at $31 per share, higher than the initial expected range of $24 to $26. The closing price on the first day of listing was $84, and a week later the stock price has exceeded $107, indicating strong market interest in stablecoins and related businesses.

However, several industry insiders have stated that many early users and promoters of USDC received very little allocation in this IPO, and some were not allocated at all. This practice is considered to be extremely shortsighted behavior by Circle.

There is a view that Circle should have taken this opportunity to reward those institutions that have been deeply involved in the encryption industry for a long time. If these institutions receive good returns, they can raise more funds to reinvest in the encryption ecosystem, creating a virtuous cycle. However, Circle chose to allocate a large portion of the IPO shares to traditional financial institutions that may not understand its business.

Regarding Circle's approach, some have explained that the IPO was oversubscribed by 25 times, resulting in a general allocation ratio being compressed. However, others have pointed out that this may just be a "cosmetic" change in the final data and does not reflect actual fairness. There are also opinions that, although the underwriters are responsible for gathering institutional investor interest, it is ultimately Circle itself that decides the allocation list and ratio.

It remains to be seen whether Circle's IPO allocation will affect its future development and the adoption of USDC. Industry insiders have stated that they will closely monitor the upcoming 13F filing to understand which investors Circle ultimately chose to share in its growth dividends.

This controversy has once again sparked discussions in the encryption industry about the core concept of "aligned interests". Finding a balance between the traditional financial system and the emerging encryption ecosystem remains an important issue facing the industry.