New Dynamics of Coin-Stock Integration: From "Coin Hoarding" to "Using Coins"

Author: Yue Xiaoyu Source: X, @yuexiaoyu111

The trend of the integration of cryptocurrencies and stocks is accelerating!

I just saw the latest information that the US-listed company CIMG (NASDAQ: IMG) is collaborating with FLock to build an AI health monitoring product.

There are actually a lot of things that can be seen behind this, and I would like to share some of my thoughts here.

1. Currently, the integration of cryptocurrency and stocks is still in the first stage: hoarding coins.

This is a very basic form, and of course, it is also the simplest way to combine.

However, in the long run, there will inevitably be a shift from hoarding coins to using coins.

Public companies purchasing cryptocurrency assets for hoarding can only rely on the long-term expectation of token price increases to provide narrative space for the public companies.

The key is that cryptocurrencies have very strong cycles. When a bear market comes, the continuous decline of tokens can lead to a double whammy of stocks and cryptocurrencies, resulting in a spiral decline and collapse.

The unblocking of liquidity is just the first layer, while the deeper integration is the innovative gameplay after the combination of traditional finance and decentralized finance.

Tokenization can represent not only equity but also combine various rights, thus integrating with the business operations of physical companies.

For example, the listed company Pop Mart can allow holders of its tokens to not only receive dividends but also have priority purchase rights for labubu physical items.

Stock on the blockchain is not a simple 1:1 mapping, but rather a transition from a closed world to an open world, with stronger composability on the chain and more gameplay options.

This can fully break the narrative ceiling of a company.

2. Some projects have begun to promote the transition from holding coins to using coins.

From hoarding coins to using coins, a typical case is FLock.io.

This project has not remained in the conceptual stage but has made clear progress.

FLock is a decentralized AI project that has already been implemented in industries such as government affairs, finance, and healthcare.

FLock is recently bringing privacy-protecting AI into the consumer health vertical.

In the context of consumer health scenarios, privacy protection is crucial.

American listed companies will add FLOCK to their corporate treasury, mainly because their business requires the privacy protection AI technology provided by FLock.

The two companies are jointly developing LifeNode (an AI health monitoring and recommendation product), which combines privacy-preserving AI and blockchain technology to provide users with customized health management and advice services.

Buying coins is for using coins, and using coins is to enhance business; this is the model that can sustainably drive the synergy between stock prices and business.

3. To summarize

I originally thought that the integration of coins and stocks would develop in three stages:

Phase One: Unlock liquidity, traditional enterprises gain access to global liquidity, and cryptocurrency projects receive funding support from compliant institutions;

Phase Two: The emergence of innovative financial gameplay, fully utilizing the composability of on-chain financial systems;

Phase 3: Deep integration of tokens with actual business, products, enterprises, equity, rights, financial instruments, these key elements can be fully interconnected and integrated.

At present, innovative financial gameplay has not yet emerged, but there has been a combination of tokens and business, which is the shift from hoarding coins to using coins.

We can continue to pay attention to such projects.