Circle now seeks to sell off crowdfunding unit SeedInvest: Report
Fri, 14 Feb 2020, 10:17 am UTC
After selling off its crypto investment product 'Circle Invest' to Voyager Digital, payments firm Circle is seeking a buyer for SeedInvest, a crowdfunding platform that it acquired in 2018, The Block reported.
Circle recently announced its plans to double down on its stablecoin and USD Coin (USDC) initiatives. It had said, "Focusing effectively on stablecoin platforms means we must reduce complexity, tighten our product portfolio, and organize our teams to execute with greater agility."
Accordingly, the firm sold off its Circle Trade OTC business to Kraken and spun out crypto exchange Poloniex, which it acquired for $400 million in 2018, as a standalone company. It also said that it plans to wind down Circle Pay.
While the company had said that SeedInvest would continue to operate as its independent affiliate, sources familiar with the matter told the publication that Circle is now looking for a buyer for this crowdfunding unit.
However, the company is struggling to find a buyer due to certain issues related to how the original acquisition was structured, a source said.
In Dec., Circle stated its vision for 2020, saying:
"The global interest in stablecoins and digital currency backed by central bank money, the introduction of third generation public blockchains, and the accelerated global policy interest in crypto all provide an exciting backdrop for our new platform services in 2020. We are excited to get these technologies into the hands of creative developers and businesses everywhere."
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