While Bitcoins catches subtitles with record gatherings, the little -known crypt company steals the reflector with a surprisingly simple business model. According to Gizmodo.com, Circle Internet Group, USDC Stablecoin, recorded its shares by 675% for eleven business days of the publication of June 5 – adding a market value of over $ 42 billion.
According to the report, the company now boasts an award that competes with Unicorns and AI Giants, although it does not offer any revolutionary technology.
How Circle’s business works
According to a report on Gizmodo.com, Circle’s model is shocking direct. Users exchange U. dollars for the digital token Circle, USDC, Stablecoin suspended 1: 1 to the dollar. Circle takes these real dollars and invests them in low -aid assets for earnings.
Why sudden hype?
The increase in Circle’s valuation comes in the middle of growing optimism that stablecoins move in the mainstream. The recent Passage of the Senate “Genius Act”, which opens the door for banks, fintech and even the main retailers to use stablecoins for payments, supported the Bull’s sentiment.
Citi analysts reportedly predict that the Stablecoin market could grow to $ 3.7 trillion by 2030. R/Wallstreetbets Reddit is already buzzing, with one user to tighten this circle “Treasury ETF in a ditch”.
Risks
Despite Humbuk, Circle’s serious vulnerability is facing the business, the report is said. If the federal reserve system would reduce interest rates, the income of the Circle – precious interest from the treasury would reduce.
Larger players could start their own stablecoins and potentially push the circle from the center of attention.
(Tagstotranslate) Circle Internet Group (T) USDC Stablecoin (T) 675% Stock Surge
