The Mirage of Momentum - From Circle to Meme Stocks, The Illusion That Keeps FOMO Alive

🌟🌟🌟In investing, few forces are more seductive and more dangerous than FOMO - Fear Of Missing Out.  It is that anxious itch when you see others making gains and feel like you are left behind.  It whispers "Everyone else is in.  Why aren't you?" When a stock starts to soar, FOMO doesn't just knock, it kicks the door down.

Take Circle $Circle Internet Corp.(CRCL)$ .  After its IPO, it skyrockets over 380%, riding a wave of stablecoin optimism, regulatory breakthroughs and media buzz.  It feels unstoppable.  Many investors bought it, not because they understood the fundamentals.  They bought because they were afraid not to.  That is not strategy.  That is FOMO in action.

We have seen this before. 

Gamestop $GameStop(GME)$  AMC $AMC Entertainment(AMC)$  are meme stocks that exploded not on earnings but on emotion.  Social media lit the match and FOMO poured gasoline.  Gamestop soared over 1,700% at one point.  AMC wasn't far behind.  But for every early  winner, there were thousands who bought in late, blinded by FOMO, convinced that the rocket had more fuel.  When the hype cooled, so did the prices and the mirage vanished.

Circle, Gamestop, AMC - Different names, same illusion - that momentum equals safety, that hype equals truth.

But here is the danger - When everyone believes that a stock will keep rising, they stop asking why.  That is when illusion creeps in.

An illusion is a false perception.  It is like a mirage in the desert.  From a distance, it looks like water.  Relief.  Riches.  But as you get closer, it fades into heat and dust. 

With Circle many investors are ignoring the rising competition and the hype around its dominance that is  starting to feel more like a mirage than a moat.

While Circle's USDC remains one of the most recognised stablecoins globally, major financial institutions are now entering the ring.  Banks like JPMorgan, Citigroup, Wells Fargo and Bank of America are reportedly collaborating on a joint stablecoin initiative, aiming to launch a regulated digital dollar under the GENIUS Act. 

This institutional push could significantly dampen the narrative that Circle is the inevitable winner in the stablecoin race.  Unlike crypto native firms, banks already have the infrastructure, compliance frameworks and global reach to scale quickly.  If they execute well, Circle's market share and its premium valuation could shrink. 

To stay competitive, Circle is forming partnerships with Matera and other banks and expanding its payment network.  But the landscape is shifting fast.  What once looked like a clear lead is now a contested frontier. 

If you find yourself thinking  "It is going up, so it must keep going," take a pause.

Ask yourself -

Am I seeing it clearly or seeing what I want to see?

Am I investing in fundamentals or following a crowd?

Believing that a stock will continue to rise simply because it has - that is not investing.  Illusions built on hope can be the kind that cost the most.

So don't chase what glitters.  Pause.  Question.  Learn to see past the mirage because real conviction doesn't come from the crowd.  It comes from clarity and strong fundamentals.

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