According to PANews on July 5, and reported by BusinessTimes, the recent global surge in stablecoins has led to a significant rise in the stock prices of companies related to this still-developing technology, raising concerns among some investors. Kakaopay, listed in Seoul, has outperformed all its peers in the FTSE Global Fintech and Blockchain Index this year, with its price increase nearly double that of Robinhood Markets Inc. Despite a large volume of purchases by retail investors, institutional investors have generally been net sellers.
SeokKeun Ha, Chief Investment Officer of Eugene Asset Management, stated in Seoul that the recent boom in stablecoins reminds him of the situation in 2020 and 2021 when retail investors blindly bought into metaverse-related stocks. This is essentially a bet on policy, driven more by market sentiment than by actual fundamental factors. Cha So-Yoon, a stock investment manager at Taurus Asset Management, believes that it is still too early to determine whether the stock prices of stablecoin companies are at reasonable levels or to assess their valuations. Nevertheless, stablecoins will be issued, and the issuers will enjoy billions of dollars in profits.