In the words of Jeremy Allaire, “Seeing a major industry peer and their loyal customer base impacted like this is god awful.”
Jeremy Allaire, the Co-Founder and CEO of Circle, reassured the crypto community that his firm does not have any exposure to FTX or Alameda Research.
In his recent set of tweets, Allaire claimed that Circle has neither traded FTX Tokens (FTT) nor made any loans to Alameda Research or FTX. He clarified that Circle's USD Coin (USDC) is not under any risk from FTX's insolvency crisis.
Allaire further stated that Circle is a “tiny equity holder” for other crypto exchanges, including Coinbase and Kraken, besides FTX.
He compared the bearish turn of the crypto market after Binance agreed to purchase FTX to the Lehman Brothers crisis, adding,
“Finally, as someone who's been involved in this industry for 10 years, it is disappointing that a technology that was spawned in reaction to the Lehman Bros. moment of 2008 has given rise to its own version of the same.”
It is worth noting that in 2021, FTX was one of the many firms to aid Circle in raising around $440M in a funding round.
Meanwhile, FTX has raised over $1.8B in seven funding rounds since 2018. At the beginning of 2022, FTX hit an evaluation of $32B, with BlackRock, Sequoia, Paradigm, and Tiger Global backing the platform as its prominent investors.
FTX's buyout caused CoinLoan to declare that its yield product has no ties with Alameda Research or any other DeFi platform. CoinLoan also reassured users that it has zero exposure to FTX, Alameda, or FTT, and added,
"We take pride in our reputation as a trusted crypto business and assure you that, as always, your funds are safe and secure."
