Hot Potato Stocks? Hayes Slams New Stablecoin IPO Craze

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Hot Potato Stocks? Hayes Slams New Stablecoin IPO Craze

Written by Aaron S.,

Editor-In-Chief

Last Updated: June 17, 2025

Key Takeaways

Arthur Hayes stated that Circle’s IPO will spark a flood of copycats, but most will not survive long;
He expects short-term gains but warns against betting early, while hype and regulation may keep prices high;
Without access to exchanges, social apps, or banks, new stablecoin firms face major distribution hurdles.

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Hot Potato Stocks? Hayes Slams New Stablecoin IPO Craze

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Arthur Hayes, founder of BitMEX $134.23K , has shared his view on what might follow Circle’s recent public listing.

According to Hayes, this event will spark a rush of similar stablecoin firms going public, but most will not last. He noted that investors will be drawn in by hype, only to be let down when these new companies fail to meet their valuations.

In a blog post on June 16, Hayes predicted that after one stablecoin issuer manages to raise large amounts of money through marketing and financial tricks, the hype will collapse. This will mark the peak of what he calls the "stablecoin mania".

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While he expects a rise in stablecoin stocks in the short term, Hayes does not recommend people bet against them yet. He warned that short sellers could lose money quickly, especially while public interest remains strong and lawmakers in the US are considering new regulations for stablecoins.

Hayes described the newcomers as "Circle copycats" and compared investing in them to a game of hot potato, marked by quick trades, fast exits, and no long-term holding.

Additionally, he argued that most of these firms will not succeed because they lack access to the three channels necessary to distribute their stablecoins, which include crypto exchanges, social media platforms, or traditional banks.

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