StablecoinX Inc., a company expected to be listed on Nasdaq with the ticker USDE, has established a 360 million USD fund to invest in Ethena (ENA) tokens. This news immediately pushed the price of ENA up by 10%, confirming the appeal of this decentralized stablecoin project.
Accumulation strategy and long-term vision
The investment includes 100 million USD directly from #EthenaFoundation and 260 million USD raised by StablecoinX from top venture capital funds such as Dragonfly, Ribbit Capital, Pantera Capital, and Galaxy Digital. Of this, 260 million USD will be used by StablecoinX to purchase locked ENA from the Ethena Foundation, and the Ethena Foundation commits to using all of this money to buy back ENA directly from the market. This buyback process is expected to take place over the next 6 weeks, with about 5 million USD per week, equivalent to 8% of ENA's circulating supply.
CEO of StablecoinX, Young Cho, emphasized that this is a "super cycle of stablecoins" and that Ethena, as the leading stablecoin issuer alongside Tether and Circle, will directly benefit from the overall market development. The long-term strategy of accumulating ENA will help StablecoinX capture value from the increasing demand for "digital dollars" through publicly issued shares, similar to how MicroStrategy has accumulated Bitcoin. The Ethena Foundation also has the right to veto any $ENA sale transactions by StablecoinX, demonstrating a commitment to long-term accumulation.
Ethena (ENA), with a unique algorithmic stablecoin mechanism using $BTC , ETH, $SOL as collateral and a delta hedging strategy to combat price volatility, has shown strong growth, doubling since the beginning of July. The supply of USDE has also surpassed the 6 billion USD mark, maintaining its position as the fourth largest stablecoin in the industry. The approval of the GENIUS stablecoin law in the US is also expected to bring significant benefits to Ethena.
This move is a highly optimistic sign, indicating the growing trust of institutions in potential altcoin projects and affirming Ethena's position in the rapidly developing stablecoin market.