Circle CEO Anticipates More Crypto Firms Filing Bankruptcy in 2023

• Jeremy is nevertheless hopeful about forthcoming market innovations.
• Allaire predicted that crypto contagion will have a negative influence on the market.

On Tuesday, Circle CEO Jeremy Allaire predicted additional bankruptcy filings in the cryptocurrency sector in 2023. Due to ongoing early-stage company struggles. He is nevertheless hopeful about forthcoming market innovations. And an increase in the pace of crypto adoption in 2023 as a result of advancements in legal frameworks and laws.

On January 16 at the World Economic Forum in Davos. Circle CEO Jeremy Allaire predicted that crypto contagion will have a negative influence on the market in 2023. Causing crypto startups and enterprises to have a hard time raising funding or surviving in business.

Still Bullish in 2023

He worries that the crypto market would suffer as a result of the increased attention from regulatory and law enforcement organizations. With legislation putting cryptos in the spotlight, though, he is still bullish on the industry in 2023.

Layer-1 blockchain advancements, Layer-2 scaling solutions, and new technologies for privacy, security, and identification are what Jeremy Allaire believes will drive the industry in 2023. Tech advancements will not slow down in the crypto industry.

Allaire made reference to the publication of the “State of the USDC Economy” report. While discussing USDC’s effect on the economy and markets. The research discusses the future of USD Coin (USDC) and its potential role in the payments sector and the M2 money supply.

The report states that 80% of Circle’s reserves are kept in three-month U.S. Treasuries and 20% is kept in cash at banks to support USDC. The Circle Reserve Fund, which is wholly owned by Circle, managed by BlackRock, and held in custody by The Bank of New York Mellon, will be where all reserves will be deposited by the end of January.