Bitmex founder Arthur Hayes warned that the new Stablecoin company will try to follow Circle’s successful public offering, but is more likely to fail.
Hayes warned in a post on Monday Circle’s IPO Marking the beginning of “Stablecoin Mania”, most new public Stablecoin companies will be overrated and failed.
“The list marks the beginning of the beginning, not the end of the steady fanaticism of this cycle,” he explainadding that the bubble will pop up after the public issuer of Stablecoin, “separating the fool from tens of thousands of capital by using a combination of financial engineering, leverage and amazing acting skills.”
The next wave of listing will be “circular imitators,” he said, adding that investors should “trade this shit like you would like hot potatoes.”
Don’t be brief, warn Hays
But Hayes no longer urges traders to shorten stocks, as U.S. pro-Crypto sentiment and “Stablecoin mania” narrative will initially drive prices.
“These new stocks will tear off the face of the shorts,” he warned.
The U.S. Senate is Prepare to vote On the pivotal Stablecoin legislation on June 17, this will further push the narrative if it passes.
“The US’s Stablecoin regulations will start a wave of new stablecoins in the US and around the world.” agree Chainlink co-founder Sergey Nazarov on Tuesday.
New stability has limited opportunities for success
Hayes believes that the basic question for any Stablecoin issuer is how they will distribute the product. He identified only three viable distribution channels: crypto communication, Web2 social media giants and old versions of banks.
He said the new Stablecoin issuer “has no chance of success” without access to these channels.
He explained that most new public stability companies will be overvalued and failed because existing players have locked in distribution channels, new entrants will have to pay depositors a lot of fees, while social media companies and banks will build their own stables.
“For those who have been in the tide for a while, it would be fun to watch clowns who can blind the public to invest in their dog show companies.”
Circles (CRCL) are overrated
Hayes believes that at this stage, Circle (CRCL) was “overvalued” and handed over 50% of its interest income to Common cases. However, his price will “continue to levitate”.
Circle successfully completed its IPO on June 5 Stock prices soar By the end of the trade fair.
CRCL is currently up more than 80% since its listing, below $165 at its all-time high on June 16 according to for Google Finance.
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