Stablecoin IPOs: The New Hot Potato or Just a Spud?

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In a universe where the improbable is merely a Tuesday, former BitMEX founder Arthur Hayes has declared that Circle’s June 5 IPO has ignited what he whimsically dubs “stablecoin mania.” 🚀 But hold onto your towels, dear reader, because this is just the tip of the iceberg! Many new issuers will be scrambling to go public, and Hayes predicts that most of them will vanish faster than a Vogon poet at a poetry reading.

Surge Of Copycat Stablecoin Listings

After Circle’s shares skyrocketed by over 80% since their debut, reaching a dizzying height of just under $165 on June 16, it seems everyone wants a slice of this delicious pie. 🍰 Expect a veritable flood of “Circle copycats” to emerge, each one promising the moon and a side of fries.

These firms will dazzle us with clever presentations and promises so big they could make a whale blush. Investors might just pile in, driving prices higher at first, like a herd of panicked lemmings. 🐧

Stablecoin Surge

Treat It Like A Hot Potato

According to Hayes’s colorful advice, traders should handle these stocks like a hot potato—preferably one that’s just been pulled from a volcano. 🌋 You don’t want to hold onto them for long! The frenzy might lift prices sharply, but once confidence cracks, everyone will be racing to dump shares faster than you can say “Don’t burn your fingers!”

Risks And Overvaluation

Hayes argues that many of these new public firms are already overvalued. They’ll offer high rates to attract depositors or spend ludicrous sums on marketing. At some point, the balance sheets won’t add up, and that’s when the bubble bursts, sending stocks plummeting like a lead balloon. 🎈

He also warns against betting on a sudden collapse by shorting. The pro-crypto sentiment in the US and the mania narrative will keep prices buoyant, at least until the next cosmic hiccup. 🌌

Market Trends

Distribution Channels Locked Up

Hayes identifies only three clear paths to reach customers: crypto exchanges, big social media platforms, and established banks. Without deals in place, newcomers will struggle like a cat in a bathtub. 🐱

Social networks might just decide to build their own tokens instead of hosting outsiders. Banks could launch in-house stablecoins, effectively locking the door on new entrants. For anyone else, the chances of success are slimmer than a pencil in a weight-loss program.

Distribution Channels

Regulation Fuels The Fire

Reports suggest that the US Senate is set to vote on key stablecoin rules on June 17. If it passes, Hayes says that will add fuel to the fire, or perhaps just a sprinkle of salt on a very questionable dish. 🍽️

Chainlink co-founder Sergey Nazarov echoed that view, noting that clear rules will encourage even more issuers around the globe. Yet Hayes warns that easier regulation won’t solve the core problem of finding real users—like trying to find a needle in a haystack, while blindfolded, and with one hand tied behind your back.

Circle’s Price Tag Under Scrutiny

According to Hayes, Circle itself isn’t immune to the madness. He calls its current valuation “insane,” noting that the company gives up half of its interest income to Coinbase for custody services. Still, he believes CRCL shares will keep levitating until a true market correction sets in, like a balloon that’s just a bit too full of hot air. 🎈

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2025-06-18 02:15