Circle’s CEO Compares FTX’s Crisis to Lehman Brothers’ Crash

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According to Circle’s co-founder and CEO Jeremy Allaire, for the cryptocurrency market, the insolvency of FTX is comparable to the collapse of the Lehman Brothers investment bank, which was the catalyst for the 2008 crisis.

He has said:

“Having worked in the industry for ten years, I am disappointed that the technology created in response to the collapse of Lehman Brothers has spawned its own copy. We can get better.”

He has assured the current turbulence has not affected the USDC, of ​​which the company is a co-issuer. Its activity has been regulated since 2014, the stablecoin is fully secured by government bonds and deposits in banks.

He has added:

“USDC has ‘detailed transparency’ and is trusted by many of the world’s leading asset managers and custodians.”

The firm’s CEO has emphasized that during the past bull market, the rise in value was “completely speculative” and the usefulness of the protocols was “completely absent.”