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

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The digital currency landscape is evolving rapidly, and those who act early may stand to gain the most. When stablecoin issuer Circle (NYSE: CRCL) rang the bell on June 5 for its public listing, bold investors who bought in — whether at the IPO price of $31 (36x P/E), the closing price of $83.23 (97x P/E), or even the intraday high of $103.75 (122x P/E) — were rewarded handsomely. Within just two weeks of trading, shares surged to an all-time high of $263.45 (309x P/E), representing a staggering 750% gain from the IPO price, 217% from the first-day close, and 154% from the opening day’s peak.

This meteoric rise raises questions about market rationality, speculation, and where true innovation lies in the fintech space.

The Rationality Behind Betting on Stablecoins

Was this move pure speculation? At the IPO valuation, the multiples were aggressive but not irrational. By the time the stock reached its peak, however, it had entered territory more aligned with momentum-driven investing than traditional fundamentals. Yet when compared to other high-flying stocks like PopMart (HK:09992), whose shares hit 283.4 HKD (114x P/E) on June 12, backing a stablecoin infrastructure player like Circle begins to look like a more grounded bet.

Even local comparisons are telling. As of this writing, LINEPAY (7722.TW) trades at NT$762. Assuming full-year earnings of NT$10 based on Q1 EPS of NT$2.39, its P/E sits around 79.7x — still significantly lower than Circle’s post-listing multiples. So which would you bet on: a U.S.-based issuer of one of the world's most widely used dollar-pegged stablecoins, or a regional payment platform facing intense competition?

Investment analysis ultimately comes down to opportunity cost and rational decision-making under uncertainty. It involves weighing data, probabilities, historical patterns, and expected returns. The case of ARK Invest’s Cathie Wood is instructive: she committed $150 million during Circle’s pre-IPO funding round at $31 per share. That single decision could have yielded over $1.1 billion in unrealized gains as prices soared — a testament not just to insight, but also courage.

👉 Discover how early movers capitalize on digital asset trends before they go mainstream.

High Valuations: A Barrier or Opportunity?

Now consider this: if CRCL pulled back by 60% from its peak to around $99 (still implying a 2025 P/E of 116x), would you buy? Compare that to two currently popular CPO-related stocks in Taiwan:

Is betting on these companies more rational than investing in a proven player in the global stablecoin infrastructure space after a correction? While CPO narratives capture headlines, stablecoins represent foundational technology — the rails upon which much of decentralized finance (DeFi) runs.

Stablecoins Are the Gateway to Digital Assets

Stablecoins aren't new. Over the past decade, numerous projects have launched cryptocurrencies and tokens pegged to fiat currencies. However, only a few — notably USDT (Tether) and USDC (issued by Circle) — achieved widespread adoption. What sets them apart is trust, transparency (in varying degrees), and integration across exchanges, wallets, and DeFi protocols.

Even China has entered the arena with its Digital Currency Electronic Payment (DCEP), issued by the People's Bank of China. Yet despite state backing, DCEP sees limited real-world usage outside controlled environments. Now, companies like Ant Group, JD.com, and Huaxia Fund are reportedly exploring stablecoin launches in Hong Kong — echoing the countless "me-too" tokens seen in earlier crypto cycles.

Let’s be clear: just as Tencent’s Q币 (Q Coin) or Fubon’s momo points aren’t used at convenience stores, these corporate-branded digital units lack true monetary utility.

Why We Don’t Need Thousands of Stablecoins

At their core, stablecoins serve one primary function: bridging traditional fiat money with blockchain-based ecosystems. They allow users to convert dollars (or other currencies) into digital form without volatility — acting as on-ramps to Bitcoin, Ethereum, and other crypto assets.

But here’s the key insight: the digital currency world doesn’t need thousands of stablecoins. Just as the internet consolidated around a few dominant search engines (Google) and platforms, crypto infrastructure will likely converge on a handful of trusted, scalable stablecoins.

USDC and USDT dominate today because they offer reliability, regulatory clarity (especially USDC), and broad ecosystem support. More entrants won’t necessarily improve the system — they’ll only add fragmentation and risk.

👉 See how leading stablecoins are shaping the future of global payments.

First-Movers vs. Copycats: Who Wins?

History repeats itself. In the early days of the internet, dozens of portal sites competed for attention. Most failed. Only those with scalable models and technological edge — like Google with its search algorithm — prevailed.

Similarly, in crypto, first-movers with robust infrastructure will likely outlast the wave of copycat stablecoin announcements we're seeing now. Market sentiment might lift all boats temporarily, but long-term value accrues to those solving real problems: security, compliance, interoperability, and user trust.

Those jumping in late — chasing hype rather than building substance — will find themselves lost in the noise.

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Frequently Asked Questions (FAQ)

Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar. Examples include USDC and Tether (USDT).

Q: Why did Circle's stock surge so dramatically after its IPO?
A: Strong investor interest in crypto infrastructure, combined with limited supply and momentum trading, fueled the rally. Circle’s role as issuer of USDC — one of the most trusted dollar-backed stablecoins — added fundamental credibility.

Q: Is investing in high-P/E tech or crypto stocks risky?
A: Yes. High price-to-earnings ratios reflect growth expectations. If future performance doesn’t meet those expectations, valuations can correct sharply.

Q: Can corporate loyalty points become digital currency?
A: Unlikely. While branded tokens exist, they lack decentralization, open accessibility, and monetary independence — key traits of true digital currencies.

Q: Will there be many successful stablecoins globally?
A: Probably not. Network effects favor consolidation. Like search engines or social platforms, only a few stablecoins will dominate due to trust, scale, and integration.

Q: How can I get exposure to stablecoin growth?
A: Consider investing in companies directly involved in issuing or supporting stablecoin ecosystems — such as Circle or regulated financial platforms offering crypto services.

👉 Learn how to access next-generation financial tools built on blockchain and stablecoin rails.

Final Thoughts: Be Bold, Be Informed

The future belongs to pioneers — those willing to understand emerging technologies before they become mainstream. While speculation drives short-term moves, lasting value emerges from foundational innovation.

Betting on digital currency isn’t about chasing pumps or mimicking trends. It’s about recognizing that financial infrastructure is being rebuilt — and doing so with informed conviction.

Don’t wait until everyone else sees it. Be first. Be bold. And don’t regret hesitating when history moves forward without you.