{"id":510652,"date":"2022-11-16T09:21:55","date_gmt":"2022-11-16T06:21:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/circle-marks-a-possible-3b-loss-from-binance-stablecoin-conversions\/"},"modified":"2022-11-16T09:21:55","modified_gmt":"2022-11-16T06:21:55","slug":"circle-marks-a-possible-3b-loss-from-binance-stablecoin-conversions","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/circle-marks-a-possible-3b-loss-from-binance-stablecoin-conversions\/","title":{"rendered":"# Circle marks a possible $3B loss from Binance stablecoin conversions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e210b5143b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e210b5143b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/circle-marks-a-possible-3b-loss-from-binance-stablecoin-conversions\/#%E2%80%9D_Circle_marks_a_possible_3B_loss_from_Binance_stablecoin_conversions_%E2%80%9C\" >&#8221; Circle marks a possible $3B loss from Binance stablecoin conversions &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Circle_marks_a_possible_3B_loss_from_Binance_stablecoin_conversions_%E2%80%9C\"><\/span>&#8221; Circle marks a possible $3B loss from Binance stablecoin conversions &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvY2FiZmQwY2EtZTJjYS00MGM3LWFkMTctNTE3M2EzNjdkODAwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-887bb764>Circle, the company behind the issuance of USDC Coin (USDC)\u00a0said recent events have caused it to miscalculate its financial projections \u2014 referring to the collapse of FTX and a decision by rival exchange Binance.<\/p>\n<p>In September, crypto exchange Binance announced it will\u00a0auto-convert USDC to its own stablecoin Binance USD (BUSD), last week saw the collapse of\u00a0FTX.<\/p>\n<p>Circle\u2019s 2022 miscalculated projection was noted in its amended S-4 registration statement which was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1876042\/000110465922118597\/tm2124445-21_s4a.htm\">filed<\/a> to the United States Securities Exchange Commission (SEC) on Nov. 14.<\/p>\n<p>The S-4 is a registration statement is a document that companies fill out and submit to the SEC before merging or taking over another company or providing an exchange offer.<\/p>\n<p>Circle noted that while they were not able to assess how significant a role Binance\u2019s auto conversion\u2019s from USDC to BUSD played in USDC\u2019s decline in circulation, they observed an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximate $3 billion increase in BUSD from Aug. 17 to Sept. 30, with the firm adding: <\/p>\n<blockquote><p>\u201cWe estimate that up to $3.0 billion of the $8.3 billion decline in USDC in Circulation from June 30, 2022 to September 30, 2022 was driven by the auto conversion by Binance.\u201d<\/p><\/blockquote>\n<p>The stablecoin issuer added that the additional $13.5 billion USDC issued since Jun. 30 was a 36% reduction in comparison to 2021.<\/p>\n<p>The first S-4 filing was submitted to the SEC in Aug. 2021, in which Circle planned to merge with capital markets firm Concord Acquisition. However, Concord decided to delay the merger in Oct. 2022 until \u201cno later than Jan. 31, 2023.\u201d<\/p>\n<p>As for its business partnership with FTX, Circle has historically conducted payment processing services for FTX by issuing the now bankrupt trading platform with USDC and being a customer of Circle\u2019s Payment API over the last 18 months, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jerallaire\/status\/1590232993133518850?s=20&amp;t=HWCSITt_CkYE8m1gYptakw\">according<\/a> to Circle CEO and co-founder Jeremy Allaire. <\/p>\n<p>The stablecoin issuer said the financial impact that FTX has had on its balance sheet wouldn\u2019t be any larger than its $10.6 million equity investment, which it will officially address in the next reporting period.<\/p>\n<p>\u201cThe Company has suspended its services and transactions with the FTX Group and is in process of evaluating the impact on the provision of future services to the FTX Group and the potential indirect financial impact of the FTX Group bankruptcy,\u201d the filing stated.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto stablecoin issuer Circle adds Apple Pay support<\/em><\/strong><\/p>\n<p>The $10.6 million figure comes as Allaire confirmed in an 11-part <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> thread on Nov. 9 that Circle only holds a \u201ctiny\u201d equity position in FTX, which represented \u201cno material exposure\u201d on the company\u2019s balance sheet:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">5\/ Circle is a tiny equity holder of FTX, and FTX is a tiny equity holder of Circle.  Circle is also a tiny equity holder of Kraken, Coinbase and BinanceUS.<\/p>\n<p>\u2014 Jeremy Allaire (@jerallaire) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jerallaire\/status\/1590232998422937601?ref_src=twsrc%5Etfw\">November 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Allaire also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jerallaire\/status\/1590232996837175296\">added<\/a> that \u201cCircle has never made loans to FTX or Alameda, and has never received FTT as collateral, and has never held a position in or traded FTT.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/circle-marks-a-possible-3b-loss-from-binance-stablecoin-conversions\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Circle marks a possible $3B loss from Binance stablecoin conversions &#8220; Circle, the company behind the issuance of USDC Coin (USDC)\u00a0said recent events have caused it to miscalculate its financial projections \u2014 referring to the collapse of FTX and a decision by rival exchange Binance. In September, crypto exchange Binance announced it will\u00a0auto-convert USDC&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvY2FiZmQwY2EtZTJjYS00MGM3LWFkMTctNTE3M2EzNjdkODAwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75014,74894,75936,74863,135234,74898,75493,82350,74355,117],"class_list":["post-510652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-binance","tag-blockchain","tag-circle","tag-cryptocurrencies","tag-ftx","tag-sec","tag-stablecoin","tag-usd-coin","tag-adoption","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510652"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510652\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510653"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}