Massive Stablecoin Bubble: Arthur Hayes Sounds the Alarm
Arthur Hayes, the founder of BitMEX, cautions that a slew of other stablecoin businesses will attempt to emulate Circle’s successful IPO. But, he said, they are more likely destined to fail.
The listing marks the beginning, not the end of this cycle’s stablecoin mania,
Hayes
He went on to say that the bubble would burst following the public debut of a stablecoin issuer that uses financial engineering, leverage, and spectacular spectacle to separate idiots from tens of billions of dollars.
Hayes Slams Circle Valuation, Predicts Price Surge Anyway
Investors should treat this stuff as they would a hot potato, he added, adding that Circle copycats will be the next wave of listings. However, Hayes refrained from advocating for traders to short the equities, stating that the story of the stablecoin craze and pro-crypto attitude in the US would initially push prices upward.
These new stocks will rip the faces off of shorts,
Hayes
On the other hand, according to Hayes, Circle (CRCL) is currently absurdly overpriced and gives Coinbase half of its interest revenue. Nevertheless, its price will keep rising, he continued.
No Chance Without Banks or Exchanges: Hayes Destroys New Stablecoin Hype
The main concern for any stablecoin issuer, according to Hayes, is how they will market their offering. Only three feasible distribution channels were found by him: legacy banks, Web2 social media behemoths, and cryptocurrency exchanges. According to him, new stablecoin issuers have no chance of success if they do not have access to these channels.
Since established players already control distribution channels, the majority of new public stablecoin businesses will be overpriced and eventually fail. Social networking sites and banks creating their own stablecoins will compete with new entrants, who will also need to pay hefty fees to exchanges or provide large yields to depositors.
For those of us who have been in the trenches for some time it will be hilarious to watch the suited-up clowns that are able to hoodwink the investing public into investing in their dogshit companies.
Hayes
For more up-to-date crypto news, you can follow Crypto Data Space.
