#ArthurHayes Warns Against Stablecoin IPO Bubble After Circle Success


BitMEX founder Arthur Hayes says new #stablecoin companies will flood public markets following Circle's successful offering.


Hayes warns that most new issuers will be overvalued and likely fail due to locked distribution channels.


The #crypto veteran calls upcoming listings "Circle copycats" that investors should trade like a "hot potato."


He identifies only three viable distribution channels for #stablecoins: crypto exchanges, Web2 social media giants, and legacy banks.


New entrants face major hurdles as existing players control these channels and will demand substantial fees.


Hayes expects the bubble to burst after a major issuer "separates fools from tens of billions of capital" through financial engineering.


Despite warning against long-term investments, he advises against shorting as pro-crypto sentiment will drive initial price surges.


CRCL has gained over 80% since its listing, hitting near $165 as the #stablecoin mania narrative takes hold.

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June 17, 2025 at 10:59 AM
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