May 23, 2019, 11:25AM EDT
• 2 min read

Skeptic’s lens: Circle is getting leaner, and not just because of the regulatory climate

Quick Take

  • Circle announced this week that it laid off 30 employees in “response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States”
  • Poloniex, a cryptocurrency exchange that Circle acquired in February 2018 for $400 million, announced on Friday that it will “geofence” nine tokens from U.S. customers due to regulatory uncertainty
  • While the regulatory climate in the U.S. certainly played a part in the layoffs, there is more to the story than Allaire is letting on
  • Circle’s lower-than-expected OTC business, Poloniex’s waning relevancy as well as issues with raising more capital all likely contributed to the decision

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