The Circle listing ignites a market frenzy, early investors reap substantial returns

Recently, stablecoin giant Circle successfully landed on the New York Stock Exchange, marking another significant milestone in the cryptocurrency industry. The company's stock code is "CRCL", and on its first day of trading, it performed exceptionally well, with the stock price soaring by 168%, closing at $83.23, and a total market capitalization reaching $18.4 billion.

Circle's IPO raised nearly $1.1 billion, with the offering price adjusted from the initial range to $31, and the total number of shares issued expanded to 34 million. Notably, the oversubscription ratio for this IPO reached 25 times, reflecting the market's enthusiastic pursuit of Circle.

However, this capital feast has also sparked some controversies. Long-term partners have publicly expressed dissatisfaction with the allocation shares, believing that Circle has favored traditional financial institutions in the distribution.

In terms of market capitalization and stock price increase, Circle's IPO performance surpassed that of several previous cryptocurrency companies on their first day. Its first-day closing market capitalization of $18.4 billion, while not as high as some large trading platforms, has significantly exceeded that of many other crypto-related companies. The first-day increase of 168% is also well ahead of its peers.

Circle CEO Jeremy Allaire made a statement at the time of the IPO, emphasizing that the company has been committed to restructuring the global economic system and enhancing global economic prosperity since its inception. He stated that Circle's transformation into a public company is an important milestone, representing that the world is ready to begin upgrading and migrating to an internet-based financial system.

Market analysts point out that Circle's strong stock performance is mainly benefited from the current popularity of the stablecoin sector, as well as the extreme underestimation of this field by many investors in the past. Industry insiders predict that the crypto industry may be transitioning from the early ICO boom to a new wave of IPO frenzy.

For early investors, Circle's listing has undoubtedly brought substantial returns. According to public data, Circle has completed 9 rounds of financing (including IPO) to date, with a total financing amount exceeding $2.2 billion. The estimated return rates for several financing rounds are quite impressive, with the C round having a return rate of over 90 times, the D round about 43.7 times, and the E round about 6.33 times. Even the later financing rounds generally have return rates between 2 and 4 times.

It is worth mentioning that Circle chose the conventional IPO path rather than SPAC or direct listing. This means that the company is willing to accept stricter scrutiny and compliance processes, while early investors, the founding team, and employees' shares will typically face a "lock-up period" ranging from 90 to 180 days to prevent concentrated cashing out from causing severe fluctuations in stock prices in the short term.

The successful listing of Circle not only brings important opportunities for the company itself but also injects new vitality into the entire cryptocurrency industry. As more and more crypto enterprises enter the traditional capital market, the compliance and transparency of the industry are expected to further improve, laying a more solid foundation for future development.