USDC issued 60 billion. with the company's valuation of 40 billion: Is there any coin stock that is more crazier than this?

Picture "Circle's stock price soared to US$47 billion, which is probably the most lonely episode for people in the currency circle." This sentence accurately captures the dramatic scene in the recent market. When many "insiders" who are deeply involved in the industry miss the opportunity or sell them too early, some "outsiders" who decisively buy after listening to the podcast make a lot of money. This sense of dislocation makes people ask: How can a company that issues stablecoins have a valuation of its valuation keep up with the amount of currency it issues? Is this an incomprehensible bubble or a new logic that we have not yet understood? Is this kind of madness an isolated case in the capital market? Today, let us disassemble the Circle's valuation myth layer by layer and take a glimpse of the fantasy world of "coin stocks". 1. Revealing the secret of Circle: How does the "money printing machine" become a "money printing machine"? Many people have a misunderstanding about Circle's business model, believing that it is only an anchor of USD 1:1 to issue USDC, with meager profits. But in fact, it is a fintech giant with a strong moat and vast imagination space. First of all, it is a "interest bank" that is stable and profitable. Circle does not simply lock tens of billions of dollars in a vault, but invests these reserves in high-liquidity, high-credit assets such as U.S. Treasury bonds. This means that every time the Fed raises interest rates, it is equivalent to directly contributing to Circle's profits. This stable and huge interest income is its most solid profit base. Secondly, compliance is its deepest "moat". The [New York State BitLicense License] mentioned in the interview is the key to understanding this. This world has only more than 20 licenses, and the actual business volume can be brought not large, but it is a "top VIP card" that shows off its muscles to regulators and partners around the world. When Circle showed this license to the Monetary Authority of Singapore or the European Central Bank, it was equivalent to saying: "I passed the most difficult exams. Isn't your rules pediatrics to me?" This is a credit endorsement that its competitor Tether cannot reach. Finally, it holds the future "two-stage rocket". The first-class Rockets (now): Become a challenger to Visa, Mastercard. In trillion-level markets such as cross-border payments, international trade, commodity settlement, etc., stablecoins are showing huge alternative potential with their efficiency and low cost. Second-stage Rocket (Future): Become the underlying settlement tool in the era of "everything on the chain". When the US SEC finally turns on the green light for securities tokenization (STO), and stocks, bonds, and real estate can all be circulated on-chain in the form of tokens, as USDC on-chain USD, its demand will usher in an exponential explosion. By then, the size of the stablecoin market will be dozens of times as large as today, and may even hit the $10 trillion forecast by Michael Saylor. 2. There are more than one crazy one. Welcome to the fantasy world of "coin stocks". If you think Circle's valuation is crazy enough, then looking at the entire "coin stocks" universe, you will find that it even looks a bit "savory". The purest gambler: MicroStrategy ($MSTR) A company whose main business is commercial software, led by founder Michael Saylor, turned the company into a "Bitcoin lever ETF". It continues to use the company's money to add positions in Bitcoin by issuing bonds, financing and other methods, and its stock price fluctuates far exceeding that of Bitcoin itself. This is the real "All in", a big bet that deeply binds the fate of the company to a single asset. Thermometer of the market: Coinbase ($COIN) Its stock price is the "barometer" of the entire crypto bull and bear cycle. As soon as the bull market comes, trading volume increases sharply and the stock price soars; as soon as the bear market comes, users are lost and the stock price plummets. What's even more crazy is that in order to attract USDC deposits, it recently offered an annualized interest rate of up to 12% and joined forces with Circle to "burn money to exchange for the market." This cost-free expansion strategy is enough to make any traditional financial analyst stunned. Cycle amplifier: Mining stocks (such as $MARA, $RIOT) Their business is simple and crude - mining Bitcoin. The stock price is not only linked to the currency price, but also entangled with a series of variables such as electricity bills, mining machine efficiency, and mining difficulty, and the volatility is extremely amplified. In a bull market, they are one of the most fiercely gained assets; but in a bear market, they are also most likely to go bankrupt. 3. What should we think about after missing the opportunity? We don’t have to be upset about missing the Circle. Understanding the logic behind it is far more important than seizing an opportunity. The narrative has shifted: the flow of funds determines the market hotspots. As the experts said: "The current liquidity and wealth effects are obviously concentrated in the stock market." Because a compliant stock market can accommodate much larger funds than the currency circle. The story of Web3 is being told to Wall Street through the form of "coin stocks". Where are the opportunities in the future? Understanding the importance of "soft power": Tether's story tells us that in an emerging industry, "wealth and political resources are the hard truth." Future competition is not only a competition between technology and compliance, but also a competition between capital and power. Even when new players such as [Offshore RMB Stable Coin] enter the market, the competitive landscape will be more complicated. Grasp the cycle rotation: The current hot spot is "coin stocks", but when the macro environment changes (such as the Federal Reserve entering a interest rate cut cycle), funds may spill out of the stock market again and pour into the more risky and more elastic "altcoin" market. Only by understanding the flow path of capital can we step on the right pace. Find the next "Circle": Actively focus on traditional public companies that are embracing Web3 technology, with the potential to reduce costs and generate new revenue through it. They may be the next lead ignited by capital. Conclusion Circle's surge is not an end, but a clear signal. It marks that the boundaries between the crypto world and traditional finance are blurring at an unprecedented rate. For us who are in it, instead of being frustrated by missing a train, we might as well see the road map ahead, because the next train called "Crazy" may be about to arrive soon.