$Coinbase(COIN.US)
Circle‘s stock soared from $31 to $138, briefly topping $30 billion market cap, fueled by its USDC stablecoin. However, this frenzy is controversial:
Revenue Risk: 98% of revenue comes from USDC reserve interest. Fed rate cuts could drastically slash profits ($51.75M per 25 bps).
Vanishing ” Compliance Scarcity“: New stablecoin laws mean traditional giants like PayPal can now issue tokens, ending Circle’s unique position.
Valuation Disconnect: Trading over $110 from a $31 IPO vs. $20.9 book value. Jim Cramer called it ” too hot.“
If USDC was ” cleaner Tether,“ Circle is now ” crypto‘s CoreWeave“—solid tech, but overinflated by hype. Its inevitable pullback will test its true ” stability.“
👉 Your thoughts on Circle’s valuation? Is USDC‘s future still worth this price?
Bubble or Breakthrough?
Single Choice
- Bubble.61%
- Breakthrough23%
- Unsure15%
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