Bet on Digital Currency: Be a Pioneer, Not a Follower

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The world of digital finance took a dramatic turn when Circle (NYSE: CRCL), the issuer of the widely used stablecoin USDC, rang the bell for its public listing on June 5. Investors who had the foresight—and nerve—to buy in at the IPO price of $31 (a P/E ratio of 36x), the closing price of $83.23 (97x P/E), or even the intraday high of $103.75 (122x P/E), were rewarded swiftly. Within just two weeks of trading, CRCL surged to an astonishing high of **$263.45, representing a staggering 750% gain from the IPO price, 217% from the first-day close, and 154%** from the initial peak.

The Rise of Stablecoins: A Rational Bet in a Volatile Market?

Is this surge pure speculation? At the IPO valuation, the multiple was reasonable. By market close on day one, it edged into speculative territory. And at $263, with a P/E ratio hitting 309x, it undeniably entered bubble-like territory. Yet, when compared to other high-flying consumer or tech stocks, the bet on Circle starts to look more grounded.

Take Pop Mart (HK:09992), the Hong Kong-listed toy company behind Labubu collectibles. On June 12, its shares hit HK$283.4, trading at a P/E of 114x—a multiple often justified by brand loyalty and viral trends rather than hard earnings. Contrast that with Circle’s role as the backbone of dollar-denominated transactions in the crypto ecosystem, and the investment thesis begins to shift from hype to infrastructure.

Even closer to home, consider LINEPAY (7722.TW), trading at TWD 762. With a Q1 2025 EPS of TWD 2.39, projecting full-year earnings of around TWD 10 gives it a P/E of roughly 79.7x. Now the question becomes: would you rather back a U.S.-based financial infrastructure provider processing billions in on-chain transactions, or a regional payment app navigating saturated markets?

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Rational Investing in the Age of Speculation

At its core, investing is about rational decision-making under uncertainty—weighing data, probabilities, growth potential, and opportunity cost. The market’s reaction to Circle isn't just emotional; it reflects a growing recognition that stablecoins are the gateway to cryptocurrency adoption.

ARK Invest’s Cathie Wood made headlines selling CRCL shares early—but few remember her bold $150 million pre-IPO commitment at $31 per share. That single move could have yielded over $1.1 billion in paper gains within weeks. While critics focus on short-term volatility, pioneers like Wood are playing a longer game: betting on financial rails, not just flashy apps.

This isn’t about chasing pumps. It’s about recognizing that infrastructure wins over imitation.

Would You Buy at 116x P/E? What About 7,000x?

Let’s say CRCL pulls back 60% from its peak to $99—a still-lofty 116x P/E based on 2025 earnings estimates. Would you buy? Now consider two trending Taiwanese CPO stocks:

Are these valuations more rational than backing a proven player in the global stablecoin race? History suggests otherwise.

Recall the early internet era: dozens of portal sites competed for attention, but only those that evolved—like Google with its search algorithm—survived and dominated. Most dot-coms vanished despite early hype.

Likewise, not every company launching a stablecoin will succeed.

Stablecoins Are Bridges, Not Destinations

Stablecoins serve one primary purpose: bridging fiat currency and decentralized digital assets. They are not meant to be speculative instruments but trusted conduits for moving value across blockchains.

USDT (Tether) and USDC (Circle) dominate because they offer transparency, regulatory compliance (especially USDC), and integration with major exchanges and DeFi protocols. Over 90% of all crypto trades involve a stablecoin leg—proof of their systemic importance.

Meanwhile, some Chinese firms—including Ant Group, JD.com, and Huaxia Fund—are exploring stablecoin launches in Hong Kong. But let’s be honest: how many people use Tencent’s Q币 (Q Coin) or Fubon’s momo points at convenience stores? These are closed-loop loyalty programs—not true digital currencies.

👉 See how leading platforms verify and secure stablecoin transactions in real time—step into the engine room of Web3 finance.

The Digital Currency Landscape Doesn’t Need Thousands of Stablecoins

Just as the internet converged around a few dominant search engines and social platforms, the crypto economy will consolidate around a handful of trusted stablecoins.

Why?

In this context, Circle isn’t just another fintech startup—it’s building the plumbing of tomorrow’s financial system.

FAQ: Your Questions About Stablecoins and Digital Currency Investing

Q: What makes USDC different from other stablecoins?
A: USDC is fully backed by cash and short-term U.S. Treasury securities, undergoes monthly attestations by top accounting firms, and operates under regulated U.S. financial entities—making it one of the most transparent and compliant stablecoins available.

Q: Is investing in Circle stock the same as buying crypto?
A: No. CRCL is a publicly traded financial technology company that issues USDC. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, CRCL offers exposure to crypto adoption through regulated equity markets.

Q: Can any company launch a stablecoin and succeed?
A: Technically yes—but practically no. Success requires deep capital reserves, regulatory approval, security infrastructure, and widespread adoption. Most entrants lack these fundamentals.

Q: Why do we need stablecoins if we already have digital banking?
A: Stablecoins enable instant cross-border payments, programmable money (smart contracts), and access to decentralized finance (DeFi)—all without relying on traditional banks or intermediaries.

Q: Isn’t Circle overvalued based on current P/E ratios?
A: High multiples reflect future growth expectations. Investors aren’t pricing today’s earnings—they’re betting on mass adoption of blockchain-based payments, tokenized assets, and Web3 economies where USDC plays a central role.

Be the Pioneer, Not the Follower

The early days of any technological wave attract both visionaries and copycats. The former build foundations; the latter chase trends.

Stablecoins are not a fad—they’re becoming the default settlement layer for digital value. Just as email didn’t replace letters overnight, crypto-native finance won’t displace traditional banking immediately. But those who lay the rails—like Circle—stand to benefit most over time.

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The future belongs to those who see beyond the noise. Don’t wait for consensus—be part of shaping it.