Early investment firm Arca harshly criticized Circle as a "traitor": no longer accepting USDC, Circle's products are stagnant and will eventually be replaced.

The US stablecoin USDC issuer Circle was officially listed on June 5 with the code: CRCL(. The stock closed at a price of $83.23 in New York, with a daily pump of 168%. However, on the same day, Arca, a crypto investment firm and an old ally of Circle, angrily criticized Circle for being "ungrateful" and announced a complete termination of their partnership, sparking heated discussions in the market.

Arca invests 130,000 USD in 8 years of stock exchange, blasting Circle for being ungrateful and no longer cooperating.

Arca's Chief Investment Officer Jeff Dorman lambasted Circle on Twitter )X( for being quite disrespectful regarding the allocation of shares in their initial public offering )IPO(.

He stated that Arca was one of the earliest institutions to support Circle, clearly proposing to subscribe for 10 million USD in stocks, but ultimately only received an allocation of 135,000 USD in shares, which made him feel insulted.

Dorman harshly criticized Circle in the open letter:

"We have stood by you through so many difficulties over the past 8 years, only to be met with this ridiculous allocation of shares, which is simply an insult to us. We left Wall Street to escape those traditional financial clowns, and now you have become those kinds of people."

Dorman then stated that Arca not only wants to close all accounts with Circle, but will also call on other operators not to cooperate with Circle.

The original text after compilation ) has been deleted (:

"You have completely deviated from the core spirit of the encryption industry—almost all participants in this space grow together with customers and stakeholders through the issuance of tokens, turning them into long-term users and promoters of the products, thereby truly supporting the development of the company. However, you have chosen to allocate a large amount of quotas to traditional financial mutual funds and hedge funds, entities that may not have even looked at your fundraising prospectus, do not have wallets, and never intended to use your products."

We, Arca, will fully close all accounts with Circle and notify all market makers we work with that we will no longer accept USDC in the future and will only use USD and on-chain stablecoins. We will also explain to all our clients and the limited partners in our funds how Circle actually works, and we hope that they will also choose to withdraw their businesses. How irrelevant and homogeneous your products are today, we can make this decision without fear and without impact on our business – something we would never have imagined five years ago. We are happy to invest resources and support other projects to grab your market share.

You and Coinbase are a 'match made in heaven' — two incompetent management teams that started early but messed up everything. The reason why you are rejected by users is precisely because you never care about users. I used to think that Circle and Coinbase would eventually be replaced by traditional finance because of the lack of features in your products, but I never thought that I would really look forward to this moment. Now I'm not only looking forward to this happening, but I'm actively involved in making sure it happens. When banks launch similar products and are ready to rob you of the profits of your deposited funds, I think the traditional financial investors you tried to please at the time of the IPO will probably not come to the rescue at all."

The Circle IPO process is heating up, with a total fundraising amount of nearly 1.1 billion USD.

Circle originally planned to launch its initial public offering )IPO( on May 27, issuing 24 million shares. However, due to market enthusiasm exceeding expectations, the issuance target was revised upward twice, on June 2 and June 4, ultimately increasing to 32 million shares, raising nearly 1.1 billion USD at a price of 31 USD per share.

Circle then went public on 6/5 at an offering price of $31 per share. After opening at $69.5, it once rose to $103.75, a one-day gain of 168%. According to previous reports, this is the largest first-day gain of more than $100 million in U.S. IPOs since solar electric vehicle maker Sono Group NV closed up 155% on the first day in 2021.

)Circle is honored to be listed, with a first-day pump of 168%, will it spark a wave of encryption IPOs?

In this article, early investment institution Arca lambasted Circle as "traitors": no longer accepting USDC, Circle's products are not innovative and will eventually be replaced. Originally appeared in Chain News ABMedia.