I haven't seen a thread on this stock yet. Hoping someone on the forum can do a deep dive into how this crypto/stablecoin and stock is positioned for the future. I feel out of all the crypto scams like meme coins, NFTs, etc, stablecoins have the most utility so it might be worth investing.
Probably better to post this in the Crypto section but I did buy 100 shares at $79 on the first day. Looks like there is a boom coming in the IPO markets so JPM GS & JEF are buys along with NDAQ. Add in the delayed success of CRWV and it's starting to look like 1996 again (post Netscape's IPO).
Yeah I thought about posting in Crypto for a sec but don't know enough about this stock like if it's a MSTR type of thing. Tether is big dog in stablecoin, I believe, but it's not a stock.
USDC and EURC are the coins. Stable to USD and euro. The company provides transfer services, payments, easy dev tools. Better than Tether ,IMO. The company still has ability to freeze addresses though IPO was underpriced by evidence of Friday's close
one needs to understand that the issuers of coins will eventually bankrupt when us debt explodes. to maintain 1 to 1 par value, the issuers would have to use the funds to buy treasuries and other high rated corporate debts, just like re-insurance companies. however their money flows are not regulated by the federal reserve hence the problem, a bank run as soon as big users cash out.
It does seem that complex potential macro issues like inflation and US debt make it hard to gauge the long term prospects of stablecoins pegged to the US dollar. BTC is touted as a safe haven for inflation rampant countries like Argentina. So stablecoins do not provide this type of protection? Is buying stablecoins like investing the USD currency?
if you peg to usd 1 to 1, effectively is using dollar, with less regulation and no one can enforce at the moment but it is traceable. this creates a new class of treasury buyers. if you learn anything in economics, the most successful example so far is the hong kong currency board, it is the same mechanism.
Every couple years a new coin comes out. They ALWAYS say they have their backing in gold, treasuries, or dollars/Euros. No one looks closely to see if they are lying or not... Sam Bankman-Fried had a 7.6% ownership in Robinhood...Truth!! What was not said was that he "loaned" the stock out as collateral to another coin!!!! "It's there"...Until it's not. PS I just laugh that people/countries are taking possession of their gold options!! Someone is going to get so burned soon with that one...
I dont think it has much to do with inflation here. This is a tether type play. They are developing tether types differently from crypto in general. They seem to be looked upon more as "digital Currency". Circle is very popular because its kind of a basket (USD and Euro). And Currency Baskets seem to be what this whole thing is all about. Managing risk away from USD. More and more tether types will come out will basket groupings. Particularly away from USD holdings. Europe could have its own tether type basket as there are many currencies beside the Euro. Gold Tether Type crypto seems even more different. Not sure how that would work...but it might eventually work well. Again..these seem to be more like digital currency and digital basket of currencies. Circle is just the beginning. There will be some very desirable tether basket types holding stuff like Swiss Franc, Dubai Dirham, Bahrani Dinar, Norwegian Krone, Kuwaiti Dinar etc.. and yes..I think central banks will eventually be able to hold these and countries will be able to use them as trade reserves.
Just me... Besides gold and silver... I diversify by buying foreign stock. If than means going into the Tokyo Exchange or ASX, so be it... Yes, I have some American depository... Three products I own are; FXA, FXE, and FXC... PS All three can be optioned as well...