Crypto
Circle Stock Slumps as cirBTC Launch Fails to Impress
Circle Internet stock has taken a sharp downturn, dropping by 5.2% to $90.60 in morning trading.
The decline follows Monday's strong rally, which saw investors take profits and reassess the company's newly introduced cirBTC wrapped Bitcoin token.
Launched with only 40 tokens in circulation, despite holding reserves of over 42.5 Bitcoin across 14 addresses, the product has failed to impress compared to established competitors WBTC and Coinbase's cbBTC.
The market is also being impacted by a lingering competitive overhang from a Wall Street Journal report in late August, which highlighted major banks' plans to launch their own stablecoins, threatening Circle's core USDC franchise.