Lol. It's ok nwm. Just bustin' balls in good fun.... you really want me to surrender and warring is not that important to me. So, here: You're the best computer science trader I've ever met! You can quote me. Happy? Feel better? Feel superior? I want you to be happy (even if you're wrong, lol). Seriously, from one stubborn mofo to another... no hard feelings. Edit: for those who are disoriented, the backstory is here.
Two threads on CRCL, I pick this one, lots of drama What is CRCL and what's the big deal? Circle is like a digital bank (for crypto assets financial ecosystem) but not really, since they do not have to pay interest, nor adhere to strict banking regulations outside of their direct customers Circle sells digital (crypto asset) tokens USDC for $1 each Imagine if you will that they sold $61 Billion worth of these USDC tokens so far and will continue to sell more in the future What if 20% of those USDC tokens will forever be lost (private keys, dead owners, lost hard drives,) over the course of time. For bitcoin this is estimated to be 30-40% (not including Satoshi's coins) but bitcoin has been around longer And another 20-30% of those USDC tokens are locked up in crypto assets smart contracts TVL (total value locked) So essentially, CRCL has $25-30 Billion of free cash that they may never have to pay back, and the other $30 Billion don't have any incentives to be redeemed, and over time, the USDC supplies tend to grow bigger (except during the bear market of 2022 as there were liquidations from crypto firms that became insolvent, I think about $10 B of outflows from USDC) So CRCL is like a digital bank that has $61 B of liabilities but pay no interest, and has no risks of insolvency, since they are not over leveraged 30 to 1 They could just buy short term treasuries and collect billions of $ of yield The more USDC tokens they sell in the future, the more US $ they get for free (remember they do not have to pay interest) What should be the value of this CRCL? I say $500 Billion today [/user]
Too bad there isn't a -1 font size. Bet a certain someone could use their "skills" to find a gif for that.
USDC is already subject to audits and now the will increase even more now that circle is public. do you mean tether? They are the ones that just do attestations. The fact that tether just does attestations not a full audit has caused an entire subculture on this forum to miss hundreds of percents of bitcoins rally lol something I will still never understand
do you have a link to one of them audits? All I can find are attestations. Crypto ain’t my bag I sell stonk market insurance.
Circle.com/transparency go down to the “independently audited” drop down. basically there is an attestation every month in addition to a big four audit
Its a really good point about the lost coins and how much is locked up and hence likely never to be redeemed. But imagine if the Fed does start dropping rates. That is an instant hit to the profitability. Tether and Circle are of course at the mercy of the interest rate. Clearly, even 0.25% payments on $150B will be plenty for Tether to pay their very small work force, but for Circle, if there are several rate cuts, the income part will drop quite a bit. I have no idea where interest rates are going, and if its even possible for them to hit 1% or lower ever again, but in a rate dropping cycle, I imagine the CRCL stock to get hammered.
That's a very good point, if the US goes back to NIRP and I think the stablecoin regulations require Circle to back the USDC with UST's , that would be a big negative to earnings outlook for CRCL Tether with their excess profits are buying bitcoin, gold, and getting into the bitcoin mining business, CRCL could do it, too, with excess profits (if any) outside of the 1-to-1 backing