Analysis: Some fund companies are suspected of cautiously exiting the market when stablecoin concept stocks are booming

PANews reported on July 5 that according to BusinessTimes, the recent global stablecoin craze has caused a sharp rise in the stock prices of companies related to this still-developing technology, causing some investors to be wary. Kakaopay, listed in Seoul, has outperformed all its peers in the FTSE Global Fintech & Blockchain Index this year, with its gains almost twice those of Robinhood Markets Inc. Although retail investors have bought a large number of shares, institutional investors are generally net sellers.

SeokKeun Ha, chief investment officer of Eugene Asset Management, said in Seoul that the stablecoin craze is reminiscent of the situation in 2020 and 2021 when retail investors blindly bought metaverse-related stocks. This is essentially a bet on policy and is driven more by market sentiment than real fundamentals. Cha So-Yoon, equity investment manager at Taurus Asset Management, believes that it is too early to judge whether the stock prices of stablecoin companies are at a reasonable level or to assess their valuations, but stablecoins will be issued anyway, and issuers will also sit on billions of dollars in revenue.