Following a notable debut on the Nasdaq earlier this year, Circle (CRCL), the issuer of the USDC stablecoin, has experienced a significant decline in its stock value. After hitting a peak of $298 on June 23, just 18 days post-launch, shares have now dropped by 68%, trading around $82.
Circle Faces Challenges As Lockup Period Approaches
Despite benefiting from a softer regulatory stance on digital assets in the US with President Trump’s crypto policies, Circle faces challenges that history does not favor, particularly as it approaches the end of its lockup period.
Analysts, including Dan Dolev from Mizuho, highlighted that this lockup period prevents insiders from selling shares, typically for 180 days after an initial public offering.
Circle’s initial public offering (IPO) filing indicated that this lockup period is set to expire two days after the company unveils its third-quarter earnings, which is this Friday.
Mizuho’s analysis of over 750 IPOs with market cap
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