The founder of Bitmex, Arthur Hayes, warns that an incoming wave of new Stablecoin companies will try to follow the successful public offer of Circle, but are more likely to fail.
In an article on Monday, Hayes warned that, even if the IPO of Circle marks the start of the “Stablecoin mania”, most of the new Stablecoin public companies will be overvalued and stranded.
“The list marks the beginning, not the end of the stablecoin mania of this cycle,” he said, adding that the bubble will appear after the public launch of a stable transmitter “which separates fools from tens of billions of capital using a combination of financial engineering, lever and incredible show-chair.”
The next wave of announcements will be “circle copies,” he said, adding that investors should “exchange this shit as you would for a hot potato”.
Don’t run, warns the Hayes
However, Hayes has stopped inviting merchants to short-circuit actions, because pro-Crypto feeling in the United States and the story of “Stablecoin Mania” will increase the prices initially.
“These new stocks will snatch the faces of shorts,” he warned.
The American Senate is about to vote on the key legislation of the stable on June 17, which would feed the story more if it adopts.
“The regulation of stablescoin in the United States will launch a wave of stable stables in the United States and around the world,” Chainlink’s co-founder, Sergey Nazarov, on Tuesday.
The new stablecoins have limited chances of success
Hayes argued that the fundamental question for any Stablecoin issuer is how they will distribute their product. He only identified three viable distribution channels: crypto exchanges, web 2 social media and inherited banks.
Without access to these channels, the new Stablecoin issuers have “no chance of success,” he said.
Most new Stablecoin public companies will be overvalued and fail because the distribution channels are already locked by existing players, new participants will have to pay substantial costs in exchanges or give in to depositors, and social media companies and banks will strengthen their own stablecoins, he explained.
“For those of us who have been in the trenches for some time, it will be hilarious to monitor adapted clowns who are able to make fun of the investment public in investment in their Dogshit companies.”
The circle (CRCL) is overvalued
Hayes maintains that Circle (CRCL), at this stage, is “incredibly overvalued” and gives 50% of its interest in Coinbase. However, its price “will continue to levitate,” he added.
Circle completed a first public public call on June 5, the increase in action at the end of the negotiation session.
CRCL is currently increasing by more than 80% since its listed, reaching a top of all the time in less than $ 165 on June 16, according to Google Finance.
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