The crypto world is gradually becoming like the US stock market, and now you need to understand the US stock market to participate in the crypto world.

Due to the Bitcoin ETF, it used to be that only Bitcoin and US stocks were very close, but now people in the crypto world are starting to make moves in the US stock market.

Let’s take a look at which “coin stocks” are worth following right now.

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

The benchmark for the first category of stablecoin concept stocks is Circle.

However, Circle is currently at a very high premium, and people in the crypto world cannot understand it, but traditional finance people are still charging ahead.

In addition to Circle, other companies worth following include Tether (a private company, but USDT dominates the market) and Paxos (issues Pax Dollar and PayPal USD).

The second category is trading platforms, with Coinbase as the benchmark.

However, Coinbase assets are already overpriced, with a stable valuation and limited growth potential.

In addition to Coinbase, other noteworthy ones to follow are Robinhood and Kraken.

Robinhood itself is a traditional stock trading platform, but it is actively expanding into the crypto world and has just acquired Bitstamp.

Kraken is also a compliant exchange in the United States, and it has not gone public yet, but it is planning an IPO. If the IPO is successful, it would be a strong challenger to Coinbase.

The third category is mining stocks, which are involved in the Bitcoin mining industry.

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

Mining stocks are cyclical stocks, with significant losses in the bear market of cryptocurrencies and high gains in the bull market.

Due to reliance on computing power and energy costs, it will be subject to pressure from environmental protection policies.

In the long run, the enhancement of Bitcoin’s position as a reserve asset is still beneficial for mining stocks.

The fourth category is cryptocurrency vaults, represented by MicroStrategy.

MicroStrategy pioneered the “financing - buying coins - pumping” model, raising funds from the market and leveraging to buy BTC.

Currently, there are Ethereum micro strategies, Solana micro strategies, TRON micro strategies, and so on.

Many leading cryptocurrency companies are buying some shell companies in the US stock market and then raising funds from the US stock market to reverse purchase cryptocurrencies.

This greatly tests the fundraising ability of cryptocurrency companies, requiring them to already have money, like MicroStrategy.

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

However, these two are still different. The former is raising funds from the market to buy Ethereum, while the latter is injecting the stablecoins he holds together with TRX into this US stock company and then converting it into USD.

Therefore, this type of asset like SRM may have potential compliance risks.

Summarize

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

The risks of these 4 types of coins and stocks are different:

(1) The concept of stablecoins has the lowest risk, but the growth ceiling is limited, making it suitable for institutional investors seeking stable returns.

(2) The valuation of the trading platform is high, and attention should be paid to its ecological expansion capabilities, suitable for investors who are optimistic about the long-term growth of the crypto market.

(3) Mining stocks are strongly cyclical, requiring attention to energy and regulatory pressures, making them suitable for cyclical traders. However, positions should be dynamically adjusted in conjunction with Bitcoin prices and energy costs.

(4) The cryptocurrency vault has the strongest explosive power, but it also carries the highest leverage and regulatory risks, making it suitable for high-risk tolerant speculators. In-depth research on the company’s financing capabilities is required.

Coin and stocks are merging; on one side, stock assets are being put on the blockchain, and on the other side, crypto world assets are being listed. The liquidity of the two markets is being interconnected in both directions.

We ordinary retail investors also need to adjust our thinking and start learning relevant knowledge!

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