BitMEX co-founder Arthur Hayes has warned that several overhyped stablecoin companies would follow the recent public listing of Circle (CRCL). On June 16, Hayes declared that Circle’s IPO marks the beginning of a “stablecoin mania” cycle, one that will ultimately see most new entrants fail.
The expert predicted that a bubble will form and burst once a high-profile issuer uses “financial engineering, leverage, and amazing showmanship” to attract billions in investment. He called these emerging firms “Circle copycats” and cautioned investors to trade them like a “hot potato.”
Hayes’ statements come as the US Senate prepares to vote on new stablecoin legislation today, a move that could further catalyze the hype.
Why Hayes Believes Newcomers Will Fail
According to BitMEX co-founder, the core challenge for any new stablecoin company is distribution. He identifies three effective channels: centralized crypto exchanges, major Web2 platforms like social media
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