Arthur Hayes Sees a “Stablecoin Gold Rush” – and a Graveyard of Future Flops

Arthur Hayes believes investors are about to learn a painful lesson from the post-Circle euphoria.

In a Monday commentary, the BitMEX co-founder said Circle’s blockbuster listing will spark a rush of me-too stablecoin floats, each pitching itself as the next big bridge between traditional cash and crypto rails. Prices will soar at first, he predicted, but most newcomers will collapse once the hype fades.

Hayes does not advise shorting these stocks straight away; a dovish U.S. regulatory mood and the Senate’s June 17 vote on stablecoin legislation could supercharge initial rallies. “Shorts will get steam-rolled,” he wrote. Play them like “hot potatoes” instead—buy early, cash out quickly.

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Why does he think the majority will fail? Distribution. A viable stablecoin must reach users through one of three pipes: major exchanges, large social-media platforms, or global banks. Those channels already belong to entrenched players; aspiring issuers will either pay steep listing fees, offer fat yields to attract deposits, or watch the incumbents roll out their own tokens. Without that reach, “there is no chance,” Hayes said.

Even Circle, in his view, trades at a fantasy valuation. He noted that the issuer still hands half its interest income to Coinbase, yet its stock keeps “levitating,” up more than 80 percent since the June 5 debut.

Chainlink’s Sergey Nazarov offered a softer take, arguing that fresh legislation will ignite a worldwide wave of dollar-pegged coins. Hayes isn’t convinced. A bubble always starts with a winner, he said, but ends when the copycats arrive, armed with leverage, slick marketing—and little else.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.