Garrett
@garrett
The Circle IPO seems to be overvalued bc there’s so much demand for exposure to stablecoin growth and there’s not many options to get exposure, especially for more traditional investors Coinbase gets 100% of the revenue from $USDC held on its platform. 50% for all other residual revenue from $USDC reserves Coinbase is better placed to earn from the gain in USDC market cap than Circle itself us. This will be true for the next few years at minimum. According to Coinbase’s 2024 report, the agreement that began in 2022 runs for an initial term of three years. After that, Coinbase and Circle will “discuss in good faith whether any modifications to the Circle Agreement are warranted.” If no new terms are agreed upon, the deal automatically renews for another three years—unless either side fails to meet its obligations. With all of that said, Circle could essentially become a meme stock for stablecoin growth and get a valuation far beyond its current fundamentals
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tyler ↑
@trh
Good insight. It'll be interesting to see how the IPO affects CB: while it benefits tremendously from Circle's usage, it's no longer a proxy for institutional stablecoin exposure.
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Rch
@rch
just realized that the price jumped 3X post ipo which is kind of insane! Circle will do good revenues during bad times and bad during good times and if that reflects in the stock price (after correction) might be an interesting stock to own
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sparkz
@jacy
🎯🎯🎯
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Mahi
@mahij
big w for stablecoins!!
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pxaxm
@pxaxm
that's probably the only thing going for it. It's not a healthy looking investment
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ihawaii.eth
@ihawaii.eth
https://farcaster.xyz/ihawaii.eth/0xda235fa0 memestock os stablecoins!!!
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5050
@saieran
Circle's IPO seems to be driven more by narrative than fundamentals right now. With limited ways to get direct exposure to stablecoin growth, traditional investors are piling into the only name they can recognize. But ironically, Coinbase may actually be the better play.
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69Ⓜ️.degen.eth6️⃣9️⃣
@iq313
hi garret https://farcaster.xyz/iq313/0x932a196d
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