$CRCLB OUSD bursts onto the scene—does Circle still have a future?
Yes, and a big one!
Let’s take a closer look at the news flow around OUSD.
140+ companies in partnership, 0-fee minting and redemption, earning interest on stablecoins while you hold—on the surface, the story sounds wonderfully good. But it also precisely steps over regulatory red lines:
1. The 140+ company partnerships involve industry monopolization; OUSD could face penalties under the Anti-Monopoly Law.
2. Earning interest on stablecoins while holding violates Article 4 of the “Talent Act”; it likely doesn’t meet regulatory requirements.
3. Announcement ≠ fully developed. The stablecoin sector already benefits from network effects and first-mover advantages. Even a compliant USDC had to put in a lot of effort to carve out some “cake” from USDT. How much easier will it be for a later entrant like OUSD? In the short term, USDC has plenty of time and space to respond to future OUSD pressure.
At the same time, this round of decline is also because the Russell Index removed
$CRCLB , triggering large amounts of passive selling by funds—resulting in a -17% drop. And because the Russell Index’s representation is still not great (it uses a market-cap weighted average method; it doesn’t rely on the index provider’s subjective judgment, but strictly uses market cap standards to determine a stock’s position in the index), this removal was mostly a matter of little consequence. Circle’s fundamentals remain solid.
All in all, Circle still has fight left. Who knows whether the stablecoin track will be dominated by a single “big winner,” or where everyone shines in their own way? In the long run, things will likely follow three main lines: computing power, energy, and payments—so you can’t really go wrong.
#OUSD #CRCLUSDT