Coin Stock PK Stock Coin: Decoding the Wealth Code of RWA

At the intersection of Web3 and TradFi, “coin stocks” and “stock coins” are becoming prominent investment tracks. In this market driven by attention and belief, stories and narratives often hold more influence than the technology itself. In this episode of Bill It Up, we invite two deep players in the Web3 field—Stablestock CEO Zixi and Primitive Ventures partner Yetta—to engage in an in-depth discussion around the concepts of “coin stocks” and “stock coins,” dissecting their intersection, differences, and future potential in encryption investment and traditional finance. They share insights on how builders find footing during turbulent cycles, as well as investment returns, retail investor survival rules, and market trends.

Here is a summary of the conversation that gives you a glimpse into the wealth code of the RWA (Real World Assets) track.

Coin-Stock and Stock-Coin: The Collision of Two RWA Models

Crypto-related Stocks refer to publicly traded company stocks in the traditional financial market that are related to cryptocurrencies, such as MicroStrategy, Coinbase, or Bitmain. These companies are directly or indirectly linked to the crypto market by holding crypto assets, providing crypto services, or participating in the blockchain ecosystem. On-chain Stocks are an innovative model promoted by projects like Stablestock, which tokenizes traditional stock assets and enhances on-chain trading and liquidity through blockchain technology.

Zixi and Yetta agree that these two tracks each have their unique market logic and development potential. Coin stocks rely on the massive liquidity of Wall Street, attracting the attention of global investors; while stock coins leverage the global liquidity and programmability of blockchain, providing new investment opportunities for emerging market users and institutional investors.

Yetta: The Backstory of $SBET Investment and the Selection Logic of MEI Pharma

Yetta shared the decision-making process of Primitive Ventures’ investment in $SBET (a crypto asset related to MEI Pharma). Last April, their team conducted an in-depth review and found that this bull market is different from previous ones: BTC ETF has become the market leader, altcoin liquidity is insufficient, and the overall market capitalization growth is weak. At the same time, the open interest (OI) of BTC options on the Chicago Mercantile Exchange (CME) continues to lead Binance, indicating that institutional investors are more sensitive to the market than retail investors.

Against this backdrop, $SBET has become their investment target. Yetta points out that investment decisions are based on two points:

Asset fundamentals: LikeCoin in the Ethereum ecosystem is undervalued in institutional adoption, especially its potential in the payment sector. Market predictions indicate a high probability of LikeCoin ETF approval, reflecting its long-term value.

Core members’ commitment: Charlie (Charlie Li), a board member of MEI Pharma, is deeply involved in the project to ensure a strong alignment of interests. Even when the market enters a negative feedback loop, the long-term commitment of core members can provide downside protection for the assets.

Yetta emphasized that $SBET is not only an opportunity for asset allocation but also provides institutional investors with greater exposure to the encryption market, amplifying consensus value through financial innovation.

3. Zixi: The Naming of Stablestock and the Construction of the Stock Coin Ecosystem

Zixi introduced the naming logic and product positioning of Stablestock. “Stable” does not refer to price stability, but emphasizes ensuring a 1:1 peg between on-chain tokens and off-chain assets through Proof of Reserve. This mechanism allows users to freely mint and burn tokens, ensuring the price fluctuates in sync with off-chain assets, providing “stability”. At the same time, the name Stablestock also carries a bit of a “meme”—the on-chain token such as STT (Stable Tokenized Tesla) pays homage to Ethereum’s naming style, symbolizing the combination of innovation and cultural symbols.

The product positioning of Stablestock is to provide services for emerging market users and high net worth clients, mainly including:

Stable Broker: Users can legally and compliantly purchase US stocks (such as Apple and Tesla) using stablecoins and tokenize them 1:1 to gain initial on-chain liquidity.

On-chain DeFi ecosystem: Integration with DeFi protocols, supporting on-chain collateral, lending, cross-chain operations, meeting the high yield demands of high net worth clients.

The target users are divided into three categories:

People who want to buy but can’t: Emerging market users (such as those in Southeast Asia), who do not have overseas bank accounts but hold stablecoins.

High-leverage traders: hope to amplify returns through on-chain financial tools.

High net worth clients: seeking financial management needs for tax optimization or high APY (annual percentage yield).

Zixi revealed that Stablestock attracted over 100 users on its second day of launch, with assets under management reaching several hundred thousand dollars, meeting expectations. In the next six months to one and a half years, institutional users and high-net-worth clients are expected to become the main sources of income.

4. Coin Stocks vs Stock Coins: Market Logic and Investment Opportunities

The market logic of coin stocks: Yetta points out that coin stocks (such as MicroStrategy) leverage holding encryption assets (such as BTC) to achieve continuous growth in asset value per share. This model can obtain significant premiums (such as 1-3 times NAV, net asset value) when market sentiment is high. In addition, coin stocks attract institutions that cannot directly invest in encryption assets by issuing financial instruments such as preferred shares, expanding market consensus. For example, MicroStrategy’s NAV fluctuates between 0.8-4 times, currently around 1 time, which is within a reasonable range.

The market logic of stock coins: Zixi emphasizes that the core of stock coins is to utilize the global liquidity and programmability of blockchain to provide services to users that traditional finance cannot reach. In emerging markets, traditional financial infrastructure is weak, and stablecoins serve as “shadow banks,” significantly reducing customer acquisition costs. Stablestock provides a complete solution from stock purchase to on-chain settlement by combining off-chain brokerages (compliant brokerage services) with on-chain DeFi. For example, in cooperation with Lending Protocol, API instructions are used to settle Tesla stocks off-chain, addressing the issue of insufficient on-chain liquidity.

The differences between the two:

Coin stocks are more inclined towards the financial productization of assets, relying on Wall Street’s liquidity and sentiment drive.

The stock coin focuses on building on-chain trading venues, emphasizing technological innovation and global accessibility.

Yetta believes that both tracks have huge potential. Coin-stock is similar to Coinbase and Robinhood, with a market cap potential of a hundred times; stock-coin may give rise to new financial products, similar to the innovation of perpetual contracts.

Meme, Culture, and Narrative: The Core Forces Driven by the Market

Zixi and Yetta agree that in the encryption market, stories and narratives are more influential than the technology itself. Meme coins, cultural symbols, and community beliefs can quickly gather attention and drive market sentiment. For example, Bitmain (BMNR) is trading hotly on the Stablestock platform, reflecting retail investors’ enthusiasm for high-volatility assets. Institutional investors prefer blue-chip stocks (such as Tesla and Nvidia) and manage their finances through on-chain liquidity.

Yetta added that South Korea excels in cultural exports (such as AKB48) and managing sentiment in the encryption market, adeptly using the “flywheel effect” to amplify consensus. This also explains why certain coin stocks (such as $SBET) can stand out in the market.

Investment Returns and Retail Investor Survival Rules

Investment Returns: Yetta disclosed that the returns of $SBET are public due to disclosure requirements, but specific earnings vary due to factors such as market sentiment and macro policies (like quantitative easing). There are abundant investment opportunities in the primary market, with some long-tail assets offering returns of several times, but the consensus strength is lower than that of mainstream coins (like BTC and ETH). The secondary market is heated, with fluctuations of 1-2 times common in the short term, but long-term returns tend to fluctuate around MicroStrategy’s NAV.

retail investor survival rules:

Buy low, sell high: Avoid chasing prices on ATM (At-The-Market) financing days, as valuations tend to be inflated at this time. The best buying opportunity is when the market is sluggish and no one is paying attention.

Follow indicators: track the CME’s BTC options OI, the capital operations of listed companies (such as financing or repurchase by Coinbase and Galaxy Digital), and the market perception of miners to determine the cycle peak.

Cognitive Iteration: Yetta emphasizes that investing is a game of cognition. Continuous review and capturing structural changes are key to seizing opportunities.

The Future of Altcoins and NFTs

Altcoins: Yetta believes that in this cycle, altcoins have performed poorly, with a lack of liquidity and the flattening of information dissemination making it difficult to build consensus. Future opportunities lie in selecting projects with real PMF (Product-Market Fit) and solid fundamentals (such as revenue and cash flow). Zixi added that the ultimate way out for altcoins may be to “go public on NASDAQ,” gaining greater liquidity through a coin-stock model.

NFT: Yetta holds a cautious attitude towards the future of traditional NFTs due to their limited liquidity. However, NFTs as a foundational standard may play a role in the RWA (such as stock coins, real estate, bonds) sector.

Bull Market Predictions and Exit Strategies

BTC and ETH trends:

Yetta: This round of bull market is driven by BTC ETF, with clear institutional dominance. The volatility of BTC is gradually decreasing, but cyclicality still exists. Assets like LikeCoin of ETH are undervalued, and long-term potential is promising.

Zixi: Coins and stocks (such as Bitmain) are performing strongly in the short term due to financing and sentiment, but caution is needed regarding market fluctuations caused by companies selling their holdings.

Exit Strategy:

Yetta: Closely follow macro policies (such as the Federal Reserve’s easing and Treasury bond issuance), institutional operations (such as OI indicators), and miner dynamics to comprehensively assess the market top. In terms of investment philosophy, it is necessary to weigh “Time in the Market” against “Timing the Market.” Long-term holding (like Buffett-style investing in S&P 500) is suitable for investors without timing ability, while short-term operations require precise capture of cyclical signals.

Zixi: Market cycles are essentially a game of human emotions. The model of financing to buy coins can be sustainable until a company sells its holdings due to redemption pressure, triggering a decline. When exiting, one must be wary of the “death spiral,” but the volatility in this round may be relatively mild.

Message from Zixi and Yetta

Yetta: Investment is a game of cognition. Continuous review and keeping up with structural changes in the market are essential to seize opportunities. Always follow market sentiment and be vigilant for signals at the peak of the cycle.

Zixi: Stablestock is committed to providing emerging market users with access to the US stock market and empowering innovation through on-chain liquidity. We hope that in the future, more smart individuals will utilize our platform to create financial products that cannot be achieved by TradFi.

Conclusion

“Coin-stock” and “stock-coin” represent two paths for the integration of Web3 and TradFi: coin-stock relies on the vast liquidity of Wall Street to amplify the consensus value of encryption assets; stock-coin, on the other hand, utilizes the programmability of blockchain to provide innovative financial tools for global users. In this market driven by narratives and beliefs, investors need to maintain sharp awareness, seize structural opportunities, and remain vigilant against cyclical risks. As Zixi said, “Liquidity is the prerequisite for innovation,” while Yetta’s insight reminds us, “Cognitive iteration is the key to wealth.” Whether retail investors or institutions, finding a suitable foothold is essential to navigate this RWA wealth game with ease.