Memes, stable coins, and stock market bubbles are intertwined, becoming the potential detonation point of new systemic risks in the cryptocurrency world.

0x News reported that on February 18, DL News released news that Wolfgang Münchau, co-founder and director of Eurointelligence and financial columnist, pointed out in his latest analytical article that the market is currently facing a dangerous bubble state, and Cryptocurrency may become the fuse that triggers the next round of financial crisis. The article mentioned three major risk factors: The market valuation of Meme coins has reached 800 billion US dollars, with Dogecoin accounting for about half of the market value, and TRUMP coin’s market value reaching 38 billion US dollars. Münchau emphasized that unlike collateralized debt obligations (CDOs) during the 2008 financial crisis, Meme coins lack any rational basis and rely entirely on the influence of promotion. Although its scale is not yet sufficient to threaten the global financial system, it has already caused fluctuations in markets like Argentina. Argentine President Milei’s involvement in the Meme coin crash event led to a stock market decline of over 5%. The market value of stablecoins has reached 225 billion US dollars but faces significant systemic risks. The reserves of these stablecoins are mainly allocated to short-term US government bonds, hence facing serious asset-liability mismatch risks. If inflation rises and leads to a Fed rate hike, the value of reserve assets will plummet significantly. This risk mechanism is similar to the 1997 Asian financial crisis and the 2022 UK pension fund crisis, both stemming from mismatched asset-liability durations. The cyclically adjusted price-to-earnings ratio (CAPE) of the S&P 500 index is approaching 40, nearing historical highs of the Internet bubble era, far exceeding the levels of the Great Depression in 1929 (25) and the 2008 financial crisis period. AI concept stocks represented by Nvidia may reenact the history of the technology stock bubble in the late 1990s. Münchau believes that the open source nature of AI technology and the non-exclusivity of data acquisition make it difficult to maintain the monopoly position of current AI-related companies. Münchau believes that these three seemingly independent bubbles may merge into a “super bubble.” Factors such as Trump’s related policies (such as trade wars, excessive tax cuts) and the relaxation of Cryptocurrency regulation could serve as triggers. Through avenues such as rising inflation, bond market collapse, and stablecoin crisis, a domino effect could be triggered in the global financial system, similar to the transmission mechanism of the 2008 financial crisis.