The cryptocurrency circle is becoming a U.S. stock: let's talk about several types of coin stock assets that need to be paid attention to

Written by: Yue Xiaoyu

The currency circle is gradually becoming a U.S. stock market, and now you also need to understand U.S. stocks to play the currency circle.

Since Bitcoin has ETFs, it turned out that only Bitcoin was very close to U.S. stocks, but now people in the cryptocurrency industry are starting to go to U.S. stocks to do things.

Let's take a look at what are the "currency stocks" worth paying attention to at present?

The entire coin stock market is mainly divided into 4 categories:

The first type of stablecoin concept stocks, the benchmark is Circle.

However, the current premium of Circle is very high, and people in the currency circle can't understand it, but people in traditional finance are still rushing hard.

In addition to Circle, companies to watch out for are Tether (unlisted, but USDT dominates the market), Paxos (issuing Pax Dollar, PayPal USD).

The second category is the trading platform, and the benchmark is Coinbase.

But Coinbase assets are already too priced, with stable valuations and limited room for growth.

In addition to Coinbase, Robinhood and Kraken are also worth paying attention to.

Robinhood itself is a traditional stock trading platform, but is actively expanding into cryptocurrency, having just acquired Bitstamp.

Kraken is also a US-compliant exchange, has not yet been listed, is planning an IPO, and if the IPO is successful, it could be considered a strong challenger to Coinbase.

The third category is mining stocks, which are engaged in the bitcoin mining industry.

Typical representatives are Riot Platforms (RIOT), Marathon Digital Holdings (MARA), CleanSpark (CLSK).

Mining stocks are cyclical stocks, with large losses in the cryptocurrency bear market and high returns in the bull market.

Due to the dependence on computing power and energy costs, it will be under pressure from environmental protection policies.

In the long run, the improvement of the status of bitcoin reserve assets is still good for mining stocks.

The fourth category is cryptocurrency vaults, represented by MicroStrategy.

MicroStrategy has created a "financing-buying-pulling" model to raise funds from the market and buy BTC with leverage.

There are also Ethereum micro-strategies, Solana micro-strategies, TRON micro-strategies, and many more.

Many leading cryptocurrency companies are buying shell companies of U.S. stocks, and then raising funds from the U.S. stock market to buy cryptocurrencies in reverse.

This is a great test of the fundraising ability of cryptocurrency companies, which need to have money themselves, such as microstrategies.

For example, SharpLink bought by the Ethereum core circle, and SRM Entertainment bought by Justin Sun of Tron.

But these two are not the same, the former is to raise funds from the market to buy Ethereum, and the latter is to inject his stablecoins and TRX into this US stock company, and then withdraw into US dollars.

So SRM as an asset type can be potentially compliant.

To sum it up

Stablecoins and trading platforms represent "infrastructure" investments, while mining stocks and cryptocurrency vaults are more like "high-risk, high-reward" speculative assets.

The risks of these 4 types of coin stocks are not the same:

(1) The stablecoin concept has the lowest risk, but the growth ceiling is limited, which is suitable for institutional investors who pursue stable returns.

(2) The valuation of the trading platform is high, and it is necessary to pay attention to the ecological expansion ability, which is suitable for investors who are optimistic about the long-term growth of the crypto market.

(3) Mining stocks are highly cyclical, and they need to pay attention to energy and regulatory pressures, which are suitable for cyclical traders, but they need to dynamically adjust their positions in combination with the price of Bitcoin and energy costs.

(4) Cryptocurrency vaults are the most explosive, but they also have the highest leverage and regulatory risks, which is suitable for speculators with a high risk appetite and need to study the company's financing ability in depth.

Currency stocks are merging, on the one hand, stock assets are on the chain, and on the other hand, the assets in the currency circle are listed, and the liquidity of the two markets is opening up in both directions.

We ordinary retail investors should also adjust their thinking and learn relevant knowledge!