On the ability to tell stories The fact that Circle touched 300 tonight is shocking. For many people in the cryptocurrency industry, it is either because they did not open an account in advance or did not buy it, or it is a real challenge to their cognition. Because the application of USDC in the cryptocurrency industry is much lower than USDT, coupled with the fact that it has been said to make a profit of 200 million yuan in a year and the PE is also very high. As a result, they are directly 1-1 or even surpassing TVL today. What valuation model can estimate it like this? It can only be said that the stories these funds are telling to everyone are already approaching the level of the Federal Reserve. Let me tell you another story that happened in my own family. My uncle has been running cinemas in China all along. In 2016, when Wanda was at its peak, he sold all the cinemas to Wanda in one go. At that time, the valuation was based on PE 20. A cinema had a box office of 15 million yuan per year, with a profit of about 4 million yuan. If we were to acquire it directly for 80 million yuan, the investment might be less than 20 million yuan; And now? No matter how much the annual box office of a cinema is, no one wants it at all, even if it is sold for 0 yuan, because the annual net profit is almost negative, and even after taking over, it will still lose money without any capital leverage. In about 10 years, the valuation model of the cinema industry has been completely overturned. After everyone calmed down and the capital withdrew, the pattern did not change, but the story changed.