There is a wave of excitement around the Stablecoin stock exchange, but the veteran Crypto Arthur Hayes “waving” a red flag. The former CEO of Bitmex thinks that this gold rush could end badly, especially for everyday investors.
In a new blog article, Hayes qualified the IPO of Circle on “largely overvalued” and warned that the precipitation of stable companies in public could explode a financial bubble.
With the still dominant attachment, the banks that move in and retail investors in pursuit of rapid profits, Hayes suggests that the market could go towards trouble.
Tether’s strong domination
Hayes bases its warning on how the Stablescoin market has evolved. The USDT of Tether, launched in the 2010s thanks to a key partnership with Bitfinex, quickly became the essential token for cryptographic traders, especially in Asia.
It is simple, widely available and now widely used in countries with unstable currencies and limited access to banking services. Hayes says it frankly: “The world South is banished by Tether.”
Meanwhile, the USDC of Circle succeeded in the United States and Europe, thanks to its clean image and its support for Coinbase. However, it was not close to corresponding to the global scope of the USDT. Hayes says that Circle played its American roots with a message: “America = Safe”. But even a decade later, the USDT continues to direct the pack.
Banks and giants are driving in
Now the Stablecoin space changes again. The big banks become serious and they do not want to count on external transmitters like Circle. Hayes thinks they will launch their own stablecoins instead. Why share profits or take unnecessary risks when they can do everything internally?
Technology and retail giants like Amazon and Walmart would have explored the same path. This means that fewer opportunities for existing Stablecoin companies to grow or survive.
Hayes warns prudent investors. If a company says it is associated with an inherited bank to develop its stablecoin, it says: “run for the hills”. This path may no longer be realistic.
What to expect?
Although Circle has experienced a post-another increase, Hayes remains doubtful as to its long-term perspectives, as well as that of other Stablecoin stock exchange. It provides that an adjustment of the market initiated by “Financial engineering, lever effect and impressive performanceCould lead retail investors to lose billions.
Anyway, Hayes thinks there are benefits to be won in the short -term frenzy. With the prices of stables in buckling, retail investors must be careful; This bubble, he warns, could burst out deadly effects.
