The BitMEX founder warned that most new stablecoin issuers will be overvalued and likely fail due to locked distribution channels.
BitMEX founder Arthur Hayes warns that an incoming wave of new stablecoin companies will try to follow Circle’s successful public offering, but are more likely doomed to fail.
In a post on Monday, Hayes cautioned that while Circle’s IPO marks the beginning of “stablecoin mania,” most new public stablecoin companies will be overvalued and fail.
“The listing marks the beginning, not the end of this cycle’s stablecoin mania,” he said, adding that the bubble will pop after the public launch of a stablecoin issuer “that separates fools from tens of billions of capital by using a combination of financial engineering, leverage, and amazing showmanship.”
