Arthur Hayes sees Circle’s IPO as the beginning of a stablecoin bubble.
He believes many upcoming issuers will be overvalued.
Success depends on strong distribution via exchanges and platforms.
BitMEX co-founder Arthur Hayes has voiced his skepticism about the upcoming wave of stablecoin projects, calling Circle’s initial public offering (IPO) the beginning of a “stablecoin mania” bubble. According to Hayes, this phase will be marked by overhyped and overvalued projects that lack the infrastructure to survive.
Circle, the company behind USDC, one of the world’s most-used stablecoins, has plans to go public. This move has triggered major conversations within the crypto space, especially with regulatory environments shifting and stablecoins playing an increasingly vital role in digital finance.
Distribution Is Key to Survival
Hayes warns that the success of stablecoin issuers hinges on their ability to achieve broad distribution. Without integration into crypto exchanges, traditional banks, or tech platforms like social media giants, most new entrants will likely fail.
He emphasized that simply issuing a stablecoin isn’t enough—it must also be trusted, used, and accessible. Those who overlook the importance of distribution channels will struggle, no matter how innovative their product appears on paper.
TODAY: BitMEX co-founder Arthur Hayes calls Circle’s IPO the start of a "stablecoin mania" bubble.
He warns most new issuers will be overvalued and doomed without distribution via crypto exchanges, banks, or social media giants. pic.twitter.com/6OPE5FG2yN
— Cointelegraph (@Cointelegraph) June 17, 2025
A Wave of Overvaluation Ahead?
Drawing parallels to past tech and crypto bubbles, Hayes believes investors should brace for a surge of projects entering the market with inflated valuations. These companies may raise large sums, fueled by speculation rather than real-world utility or adoption.
The message is clear: while stablecoins will remain a foundational part of the crypto ecosystem, not all stablecoins—and not all companies issuing them—are built to last.
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