Thoughts on Circle Internet Group

Stablecoin The first stock Circle Internet Group

1. Cryptocurrency: Digital assets using blockchain technology and encryption algorithms, such as Bitcoin BTC and Ethereum.
Digital currency: Currency that exists in digital form, such as digital RMB, Alipay, and WeChat money.
Stablecoin: A new type of coin between cryptocurrency and digital currency.
It has both the attributes of cryptocurrency and digital currency.
Definition: A digital currency pegged to real assets, such as USD, HKD, and gold.

2. Current major stablecoins.
No.1 USDT, issued in 2015 by Tether Limited
Pegged 1:1 to USD, market cap approximately $160 billion.
No.2 USDC, issued in 2018 by Circle and Coinbase.
Pegged 1:1 to USD, market cap approximately $60 billion.
Currently the top 2️⃣ stablecoins in the world.

3. Applications of stablecoins:
(1) Can be used on cryptocurrency exchanges to purchase BTC, ETH, etc.
(2) Fast cross-border settlements, low fees, no need for SWIFT.
(3) Supports storage, transfers, payments, asset management, and security (multi-layer encryption).
Initially, Circle Internet Group (CRCL) was issued at $30, and within 10 trading days, the stock price soared like a rocket to $240, with a PE ratio as high as 300x. Although the main source of profit is interest income (U.S. Treasury bonds) and platform revenue sharing, many find it hard to understand why the stock price is so high. The main reason is that the future ceiling for CRCL is unknown. The stock price has no upper limit, only higher. Although I participated a bit at $110, today I believe Coinbase is safer.
Looking ahead, the development of stablecoins is immeasurable. Major well-known companies will issue their own stablecoins to enhance competitiveness and reduce costs. JD.com and Ant Group are also preparing to issue stablecoins in HK. NOW, for mainland China, this is a huge challenge. Although we have opened cross-border payments, it is a significant test for regulators. Because wealth transfer is happening now—whether we follow or not, we have no choice but to move forward. The future world is the world of stablecoins.