The stock prices of many listed companies in Hong Kong have surged due to benefiting from the trend of the 'stablecoin concept.'
Investor interest in stablecoin-related stocks has driven prices unusually high, while also warning about the risk of short-term adjustments.
MAIN CONTENT
Stocks of companies associated with stablecoins in Hong Kong have experienced explosive growth.
Puxing Energy had a record price increase exceeding 280% in trading on July 10.
The industry warns of the risk that these stock prices may face downward pressure adjustments.
Why have the stock prices of companies involved in the stablecoin concept surged?
Based on data from the Hong Kong stock market on July 10, stocks of companies related to stablecoins recorded unusual increases, reflecting significant investor enthusiasm. This boom reflects the hot development trend of the stablecoin sector in the global cryptocurrency finance.
Financial expert Linh Nguyen, director of the Vietnam Blockchain Investment Fund, commented: 'Stablecoins are becoming the focal point attracting capital flows, especially in emerging markets, as investors seek stability amid cryptocurrency volatility.'
Which stock increased the most during the trading session on July 10 in Hong Kong?
Puxing Energy's stock stands out, having surged over 280% during trading on July 10, achieving an unprecedented short-term spike. Meanwhile, Delin Holdings also recorded a 70% increase right in the morning session, reflecting significant volatility in the stablecoin-related stock group.
'The excessively hot growth of stablecoin-related stocks poses high risks; investors need to carefully consider before participating.'
Nguyen Van Quang, Market Analyst, July 2024
What are the risks and dangers when investing in stablecoin-related stocks?
According to evaluations from analysts at the Hong Kong Securities Report 2024, the rapid increase of stocks due to market effects can lead to significant price adjustments, causing financial losses for investors. These fluctuations often stem from the instability of stablecoin projects or changes in cryptocurrency financial management policies.
Many experts recommend that investors should consider carefully, focusing on the fundamental data of the business, and avoid chasing temporary trending fads.
How to assess the potential and risks of stablecoin-related stocks?
Expertise in cryptocurrency financial investment advises that in-depth analysis of the technological foundation, governance quality, and business cash flow are key factors. The company's financial reports and development strategies must ensure transparency and sustainability to minimize volatility risks.
Stock Price Increase Rate on July 10 Related Industry Potential Risks Puxing Energy 280% Energy – stablecoin linked Price adjustment, significant volatility Delin Holdings 70% Technology related to stablecoins Morning session volatility, instability
Frequently Asked Questions
Are stablecoin-related stocks a safe investment choice? No. Due to strong volatility and rapid development in the sector, investors need to be cautious and conduct thorough research. Why did Puxing Energy's stock rise by as much as 280% in one day? The connection to the stablecoin concept is strongly attracting investment flows, creating a sudden price increase effect. What is the biggest risk when investing in these stocks? Stock prices may adjust sharply due to market effects and policy volatility related to stablecoins. How can one monitor sustainable development in this field? Check transparent financial reports, assess development strategies, and the credibility of the management team. What should new investors do when they want to enter this market? They need to consult experts, follow market analysis, and avoid emotional investing.
Source: https://tintucbitcoin.com/co-phieu-stablecoin-tang-nong-canh-bao/
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