The $ 50 billion company is doing nothing

A strange thing happens in Wall Street. It is not Elon Musk or AI or late at night Donald Trump. It is an encryption company called Circle Internet Group, and it makes the market feel that the days of the Dot-Com bubble have returned.

Circle was published on June 5. In eleven trading sessions, its shares exploded by approximately 675 %, adding more than $ 42 billion to the maximum market. The company is now trading an evaluation that places it in the same league, such as Tech Unicors and Ai Moonshots, which requires a price that pays investors, in essence, $ 295 for each dollar.

There is only one problem. The circle does not have the Revolutionary Amnesty International. Do not build elegant consumer tools. Her business model is shockingly simple.

Here’s how it works: you can give the dollar circle. They give you a digital symbol, called USDC, worth the same dollar. Then they take the actual dollar, and invest it in a safe thing like short -term US cabinet bonds, and collect interest.

Get the distinctive symbol. They get profit. That’s it. This is the entire work.

These critics have prompted more than just a glorious “money cover”. Why does Wall Street treat her like the next Tesla?

The answer is one word: stablecoin.

USDC is Stablecoin, a digital symbol linked to a stable origin, in this case, the US dollar. The idea is that for each USDC, there is a real dollar sitting in a backup account. This makes her incredibly useful for encryption traders who need to speed digital assets without Bitcoin’s wild fluctuations.

Now, the bulls are betting that Stablecoins is about to go on the prevailing. The Senate has just approved the “genius law”, a historical legislation that paves the way for banks, and technology such as PayPal, and even retailers like Walmart and Amazon to use Stablecoins for payments. Suddenly, the dream of encryption appears to be a real alternative to a visa or MasterCard on hand.

Analysts are breathing. City Expected The Stablecoin Market can reach $ 3.7 trillion by 2030. In this scenario, Circle is placed in this scenario, as a neutral platform unrelated to any one bank, perfectly.

But there is hunting. The business model that looks very cool in a high -benefit environment is its greatest weakness.

One of the users in a virus on Radit wrote: “The entire circle’s works are literally glued to the Federal Reserve.” R/Wallstreetbets. “They are the investment boxes circulating in the cabinet in the trench coat.”

If federal reserve rates reduce prices, the main flow of revenue in Circle is shrinking. Nothing also prevents the biggest players from launching Stablecoins Lowersales, erasing Circle’s Edge overnight. If everyone offers the same thing, the trench will start with a very shallow search. However, Wall Street accumulates as in the following Openai. What if the organizers are not composed? The entire model can be in danger. Work is noticeably fragile.

When contacting him by Gizmodo, a company spokesman said in a “quiet period” after health informing, and is limited to a law to make promotional data.

Now, the noise wins. Surkel -burning shares, driven by a future promise, as we all pay for our coffee in digital dollar. But below the surface, this company, which amounts to $ 50 billion, does not innovate. It only holds your money, gives you a digital receipt, and answers the interest. In the strange world of 2025, funding, this seems enough for the new Wall Street king.