Many friends ask me, will you buy Circle after it goes public?! I may not touch it for the time being, regardless of whether the PE over 40 times is expensive or not! The core is to understand the profit logic of stablecoins. Circle is essentially a shadow bank that issues US bonds to global retail investors to alleviate the gradual decline of the US dollar! This strategy is essentially a mistake. It is ridiculous to rely on global retail investors to pay for the credit of a sovereign state. Because as long as a 1USDC stablecoin is issued, at least 80% of US bonds need to be allocated. With the high interest rates on long-term US bonds, the June US bond auction has not yet been settled, and sovereign countries are selling. I won't elaborate on this point, as I have been reminding people to pay attention to the global bond market for the past month. Then there is the interest rate cut cycle. Stablecoin companies such as Tether have been making a lot of money in recent years. The first reason is their large size, and the second reason is that the US bond interest rate is very high, 100 billion yuan. Short term US bonds are 5%, and if you don't do anything for a year, you will have 5 billion yuan. However, it is expected that there will not be such good interest rates in the next 2 years! Finally, the deep binding with Coinbase, 50% revenue sharing, and high operating costs severely constrain financial performance. But Circle is still a company worth long-term attention. It is like Coinbase back then, with uniqueness and huge symbolic value. It is the world's first stablecoin giant listed on the New York Stock Exchange. It is not too late to enter the market when it is cheaper!