๐๐ฟ๐๐ต๐๐ฟ ๐๐ฎ๐๐ฒ๐ : โ๐ฆ๐๐ฎ๐ฏ๐น๐ฒ๐ฐ๐ผ๐ถ๐ป ๐ ๐ฎ๐ป๐ถ๐ฎโ ๐๐ผ๐๐น๐ฑ ๐ฆ๐ฝ๐ฎ๐ฟ๐ธ ๐ ๐ก๐ฒ๐ ๐ง๐ฒ๐ฟ๐ฟ๐ฎ-๐๐ถ๐ธ๐ฒ ๐๐ฟ๐ฎ๐๐ต
Arthur Hayes, the former CEO of BitMEX, is raising serious concerns about a new bubble forming in the stablecoin market and he believes it could end just like the $40 billion Terra/LUNA disaster.
๐งจ What Triggered the Warning?
Hayes points to Circleโs IPO success as the spark that could ignite a wave of copycats. He believes this will lead to dozens of new stablecoin projects trying to cash in, backed by marketing hype and risky financial tricks.
โA charismatic founder will show up, talk fast, and promise to take over the trillion-dollar stablecoin market,โ Hayes says. โBut it could all be built on leverage and financial engineering โand collapse just like Terra did.โ
๐ฐ Why Itโs Dangerous
Hayes says regulation is the key factor. If the U.S. allows these stablecoins to be backed by anything and pay high yields without strict oversight, we might see Ponzi-like systems return. These systems use leverage and fake yields to look solid โ until they crash.
๐ A Possible Repeat of Terra/LUNA?
Hayes compares the current trend to the 2022 collapse of Terra, which wiped out $40 billion when its algorithmic stablecoin failed. He believes a similar event could happen if unstable models go mainstream again.
๐ How to Stay Safe
Hayes offers one big piece of advice for investors:
๐ Always check how the stablecoin is distributed.
If a project doesnโt have a way to reach millions of users โ like through big exchanges, banks, or major Web2 platforms โ itโs likely doomed.
โNo distribution = no success,โ Hayes warns.
โIf they canโt show clear partnerships or access, run away.โ
๐ Bottom Line
A new โstablecoin maniaโ may already be starting .Stay alert, question the hype, and always check whoโs behind the coin โ and how they plan to grow.
