StablecoinX’s $890M Financing Fiasco: When Crypto Meets Comedy!

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Well, folks, if you thought the world of finance was just about numbers and spreadsheets, think again! StablecoinX and TLGY Acquisition have decided to spice things up by securing an additional $530 million in financing. That’s right, we’re talking about a whopping total of $890 million, and they’re planning to use it to buy digital assets before their big merger and Nasdaq listing. 🤑💰

The newly merged entity, to be known as StablecoinX Inc., is set to hold a jaw-dropping 3 billion ENA tokens, the native token of the Ethena protocol. Imagine that! It’s like having a treasure chest full of digital gold, but instead of pirates, we have blockchain enthusiasts and tech wizards. 🏴‍☠️💻

This massive capital injection comes courtesy of a private investment in public equity (PIPE) transaction, a fancy way of saying they sold discounted shares to some very wealthy and savvy investors. New investors include the likes of YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading, along with returning backers like Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures. It’s a who’s who of the crypto world, all gathered to witness what could be the next big thing-or the next big bust. 🤷‍♂️😂

The PIPE deal was priced at a modest $10 per share, with a portion of the funds going towards purchasing discounted ENA tokens from a foundation subsidiary. It’s like buying a ticket to a lottery where everyone wins-except maybe the guy who forgot his wallet. 🤦‍♂️

Marc Piano, director at the Ethena Foundation, couldn’t contain his excitement, stating, “The additional funding strengthens ecosystem resilience, deepens ENA liquidity, and supports the sustainable growth of USDe, USDtb, and future Ethena products.” It’s like saying, “We’ve got the magic potion to keep this party going!” 🎉,

This announcement follows a previous disclosure on July 21, which detailed the proposed merger, an initial $360 million PIPE financing, and a $260 million ENA buyback program. It’s a lot of zeros, but hey, when it comes to crypto, more zeros usually mean more fun! 🚀

Ethena Stablecoin: The New Kid on the Block Making Waves

Launched in early 2024 by Ethena Labs, the Ethena protocol issues synthetic dollar stablecoins like USDe and USDtb, which are backed by a delta-neutral hedging model rather than traditional reserves. Think of it as a financial acrobat performing a high-wire act without a net. 🧗‍♂️

The project is overseen by the Switzerland-based Ethena Foundation, which handles governance and ecosystem development. They’re like the parents of a prodigy, always there to guide and support, but hoping the kid doesn’t crash and burn. 🙏

According to Binance Research’s September report, USDe became the fastest stablecoin to surpass $10 billion in supply, reaching a staggering $12.6 billion as of September. The report noted that this milestone was achieved in under ten months, compared to 88 months for Tether’s USDT and 38 months for Circle’s USDC. It’s like comparing Usain Bolt to a tortoise. 🐢🏃‍♂️

Token Terminal data shows that USDe supply has grown by 31% in the past month, making Ethena the third-largest stablecoin issuer, trailing only Tether and Circle. It’s like they’re playing catch-up, but with a jetpack. 🚀🔥

Ethena has also raked in over $500 million in cumulative revenue as of August, with recent weekly protocol earnings exceeding $13 million. It’s a cash cow, but a digital one. 🐄💸

Binance Research attributes this surge to increased demand for USDe and returns from the project’s hedging model, which captures yield from crypto markets to maintain the stablecoin’s peg. It’s like a financial alchemist turning lead into gold, but with algorithms. 🧪Alchemy

And get this: Ethena’s fiat-backed stablecoin, USDtb, is being developed with a path to compliance under the recently enacted US GENIUS Act, signed into law by President Donald Trump on July 18. It’s like getting a gold star from the government for being a good digital citizen. 🌟,

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2025-09-06 02:38