The purchase of USDC issuer Circle by special purpose acquisition business Concord Acquisition Group will now take place in January 2023. After the acquisition agreement is finalised, Circle CEO Jeremy Allaire previously revealed plans to go public in Q4 2022. As opposed to the rival stablecoin USDT, the market cap of USD Coin (USDC) is still decreasing.
The purchase of USDC issuer Circle by special purpose acquisition business Concord Acquisition Group will now take place in January 2023. After the acquisition agreement is finalised, Circle CEO Jeremy Allaire previously revealed plans to go public in Q4 2022. As opposed to the rival stablecoin USDT, the market cap of USD Coin (USDC) is still decreasing.
SPAC Prepares to Postpone the $9 billion Circle Purchase
Concord Acquisition Group intends to prolong the purchase of Circle Internet Finance through January 31, 2023, according to a filing with the American SEC. After numerous setbacks in finalising the acquisition agreement since last year, the acquisition was supposed to be completed in December.
The aforementioned proposal to delay the transaction is one that the SPAC is asking stockholders to approve. A second proposal that would allow the chairman to postpone the acquisition further in the event that not enough stockholders voted in favour of the first one will also be put to the vote. The board suggests that stockholders agree to the delay so they can take part in the investment.
Jeremy Allaire, the CEO of Circle, predicted the deal would close in the fourth quarter of this year in July. Along with Concord Acquisition Group, it will also go public in Q4. Circle does, however, imply that the SEC is to blame for the delay. Prior to now, USDC Issuer indicated that the company aims to finish the SEC qualification procedure to become a listed company. Regarding Circle's concerns regarding accountability, openness, and trust, the regulator is still unconvinced.
The acquisition agreement was first delayed in June as a result of the cryptocurrency crisis and regulatory examination of stablecoins. However, unless new regulatory frameworks for the new asset class are developed, regulators' harsh position on stablecoins and DeFi will stay in place. The acquisition was further hampered by the bear market and the Fed's aggressive outlook on rate hikes.
Falling USDC Market Cap
Additionally, after the crypto meltdown, the USDC market cap has decreased significantly. In September, the market cap fell below $50 billion as a result of whales and investors selling their USDC holdings in response to sanctions against Tornado Cash.
The market capitalization of USDC is $43.60 billion as of this writing. The market capitalization of USDT is still increasing despite a decline during the crypto collapse. The market value of USDT is $69.40 billion.
