Arthur Hayes Warns Of Circle Copycat Stablecoin IPO Mania

A flood of doomed “Circle copycats” is about to hit the inventory market and buyers ought to deal with them like “sizzling potatoes,” mentioned BitMEX co-founder Arthur Hayes.

In a June 16 weblog publish, Hayes says Circle’s blockbuster New York Stok Trade debut has kicked off a brand new gold rush. He predicts a wave of stablecoin startups will now attempt to mimic USDC’s issuer by going public, including that the majority will fail spectacularly.

“This cycle’s stablecoin mania has begun,” Hayes mentioned. “The bubble will pop after the launch of a stablecoin issuer on a public market, probably within the US, that separates fools from tens of billions of capital through the use of a mixture of economic engineering, leverage, and wonderful showmanship.”

Regardless of calling Circle’s valuation “insanely overvalued,” Hayes mentioned copycat listings may initially skyrocket, identical to Circle’s 168% rally. However with out distribution offers with exchanges, banks, or social platforms, he says, “these corporations haven’t any likelihood of success.” 

Due to their preliminary success, “these new shares will rip the faces off of shorts,” he added. 

Commerce “Circle Copycats” Like “A Sizzling Potato,” Says Arthur Hayes

Hayes predicted a wave of listings from what he referred to as, “Circle Copycats,” who will all attempt to replicate the IPO success of USDC’s issuer. “Commerce this sh*t such as you would a sizzling potato,” he mentioned.

The NYSE welcomes @circle in celebration of its IPO! For over a decade, Circle has linked conventional finance and digital belongings, searching for to create a safe, always-on digital financial system. $CRCL@jerallaire pic.twitter.com/YnHL34puz7

— NYSE 🏛 (@NYSE) June 5, 2025

His remarks comply with Circle’s profitable public debut on the New York Inventory Trade (NYSE) on June 5, which noticed the corporate’s shares soar 168%.

Hayes mentioned Circle’s share worth will possible “proceed levitating” amid progress on pro-crypto and stablecoin laws within the US. That’s because the US Senate prepares to vote on key stablecoin laws later at the moment, which may inject extra momentum into the stablecoin market. 

New Firms In Stablecoin Mania Have Slim Probability Of Success

In response to Hayes, any new corporations seeking to capitalize on the stablecoin mania should construct sturdy distribution channels with a purpose to succeed. He highlighted crypto exchanges, Web2 social media giants and legacy banks as viable distribution choices.

With out these channels, Hayes says new stablecoin issuers have “no likelihood of success.” 

He mentioned that key distribution channels have already been locked up by current gamers, making it harder for brand new corporations to succeed out there.

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