- Circle apparently rejected the range because it was too low on the basis of the market value and prospects.
- Ripple wants to expand his recently launched RLUS to, among other things, compete with Tether USDT.
Ripple Labs suggested Circle Internet Group Inc. To conquer for $ 4 billion to $ 5 billion. According to people who are familiar with the issue, Circle, the second largest Stablecoin emittent, rejected the offer and called it as too low.
In the meantime, Ripple has not taken a new step, but remains interested in acquiring Circle. Moreover, Circle’s USDC has penetrated the global Web3 markets to achieve a market capitalization of around $ 61.6 billion and an average trade volume of about $ 6.9 billion.
“We do not comment on market rumors. Because we are currently in a quiet period with the American SEC, we cannot comment on our financial plans for companies. Our long -term goals remain the same,” Circle’s spokesperson told Bloomberg.
Top reasons why Ripple Eyes Circle
Circle’s market complexities
Earlier in April, Circle presented a first public offer (IPO) at the US SEC, with the aim of being mentioned on NYSE under Ticker CRCL. While the turnover of Circle grew by 16 percent to $ 1.7 billion JoJ, the net result and EBITDA of the company fell sharply.
The company has attributed the decrease in the net income to increased partner costs, stopping the service, in addition to operational costs. For example, the company has reported an increase in distribution and transaction costs compared to higher costs for its partners led by Coinbase Global.
Future growth prospects for RLUSD
Ripple Labs recently launched RLUSD to help streamline the cross-border payment system, which includes a backup of the XRP acceptance. However, the company has had to deal with intense competition from existing stablecoins led by Tether USDT.
In addition, RLUSD has experienced important competition from similar products, such as USD1 (USD1) by Donald Trump-Streamed World Liberty Financial who has already surpassed $ 2 billion in market capitalization.