Co-founder BitMEX Arthur Hayes believes that the recent listing of USDC stablecoin issuer Circle marks the beginning of a cycle of “stablecoin mania” that will ultimately lead to the failure of most new entrants.
The expert predicts a bubble will form and burst as soon as a well-known issuer uses “financial engineering, leverage and amazing showmanship” to attract billions in investment.
He called new companies that follow suit «Circle copycats» and warned investors against trading their shares.
According to the co-founder BitMEX, the main challenge for any new stablecoin company will be distribution. And here he identifies three effective channels: centralized crypto exchanges, large Web2 platforms such as social networks, and traditional banking institutions. He believes that without interaction with them, new issuers have little chance.
Despite Hayes’ belief that Circle is currently “insanely overvalued” and gives away 50% of its interest income to Coinbase, he sees the stock price holding up. CRCL shares, which launched publicly on June 5, have already risen more than 80%.
This institutional interest is driven by increased regulatory clarity in the U.S. Last week, the Senate passed the GENIUS Act, a stablecoin bill, with bipartisan support. If the bill passes both houses of Congress, it will go to President Donald Trump for final approval.
