Mastodawn

⚯ Michel de Cryptadamus ⚯May 29, 2025

1. they don't lose money either, so they can keep going

2. their business is laughably simple to run... it's like 1,500 lines of code and then a lot of phone calls with banks. mostly they are just waiting for the US government to send them interest payments every month (billions of dollars worth per year) and then cashing those checks

3. they have to pay coinbase like half of the money they used to make as a vig

4. executive comp is absurdly high for what they are doing... probably because the executives are sucking up all the profits while the getting is good (or at least that was clear in 2021, haven't actually looked at the numbers myself this time but i trust #FTAV's analysis)

⚯ Michel de Cryptadamus ⚯May 29, 2025

#FinancialTimes did a deep dive on the business model of the world's second largest #stablecoin: Circle's #USDC. It's the one that's managed by an American company and is significantly less connected to Chinese organized #crime than the other #stablecoins.

Circle, which has a very deep business relationship with #Coinbase, is trying to go public this year or next. This is their second attempt - they filed to go public ca. 2021 but ended up not doing so because... no one wanted to buy shares in a company like Circle.

I suffered through reading Circle's original SEC filing in 2021 and it made clear that a) Circle wasn't making any money and b) executive compensation was *absurdly* high... but that was in a low interest rate environment. according to #FTAV they can't even make the math work in today's high interest rate world, which surprised me.

* FT: https://www.ft.com/content/269a9260-7445-4b44-9b84-82dcdfc3c92e
* no paywall: https://archive.ph/9gGGm

#crypto #uspol #finance #economics #stockmarket #FT #Circle