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Circle, a cryptocurrency startup, is rumored to have lowered its fundraising goal a significant amount, reports The Block.
Supposedly, Circle set a $250 million fundraising goal back in March. However, according to sources “familiar with the matter,” this has gone down around 40%. A drop like this would mean around $150 million. This is unfortunate timing, considering CEO Jeremy Allaire tweeted that Circle is laying off 30 employees.
Apparently, these layoffs aren’t much to worry about:
“Today we made organizational changes at Circle and eliminated approximately 30 positions, which is about 10% of our employees. We made these changes in response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States.
Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S.”
Interestingly, Crunchbase says that the group has brought in around $246 million already. Investors include Pantera Capital, Digital Currency Group, and Bitmain, alongside others.
Circle already participates in the cryptocurrency industry, however. As of now, has ownership of the Poloniex digital currency exchange. The group recently said it has “geofenced” some currencies from citizens in the United States. This is, of course, due to a lack of clear regulation.
However, according to the publication, Circle still focuses on over-the-counter day trading. Speaking to The Block regarding this feature is a crypto insider:
“It’s crazy to me how gung-ho the industry was on OTC. If you look at any other asset class they all move to exchanges or dark pools.”
Overall, the exchange is doing quite well. So, we can expect the group to be handling just fine. These layoffs are quite unfortunate, of course, but we’ll see if they have any correlation to the rumors.