When financial instruments like this collapse it doesnt mean money turned to thin air. Rather it means money changed hands.
The people who created and sold this asset probably ended up richer . And average people who bought the hype, sadly, poorer.
The people who created and sold this asset probably ended up richer . And average people who bought the hype, sadly, poorer.
Of course it does. Wealth becomes money through credit. It promotes spending through the wealth effect [1].
There are some investors that bought SPAC shares and warrants at a premium, who are now at a loss, but primary issuance investors are just made whole.
Plenty of secondary buyers lost money. To say nothing of everyone who owns Circle.
I remember a decade ago Circle being a startup where VCs all invested like $30M in an early round and a month later the entire startup went bankrupt.
That Circle?
This circle doesn't need to go public, just jumped at the opportunity to have SPAC dumb money