Stablecoin Frenzy Hits Wall Street, But Beware: Arthur Hayes Sounds Alarm

BitMEX Co-Founder Warns of Impending Crash

Holy stablecoins, Batman! After Circle's IPO set the market on fire, stablecoins are about to flood Wall Street. But hold your horses—industry legend Arthur Hayes is ringing the alarm bells, saying most of these wannabes are doomed to fail. Buckle up, here's the lowdown.

In his sizzling essay "Assume the Position," Hayes, the brains behind BitMEX, drops the truth bomb: the "stablecoin mania" is just revving up, but retail investors better brace themselves. They're about to get roasted.

Circle's IPO was off the charts, and now Hayes predicts stablecoins are gonna hit the market like a tsunami. Big shots like Meta, X, and Airbnb are diving in headfirst, weaving their stablecoins right into the fabric of messaging, commerce, and payouts. Sounds sweet for tech stockholders, but it's a nightmare for the little guys. Big Tech's gonna steamroll these upstarts.

Here's the real kicker: stablecoin issuers are sitting ducks. Their fate hinges on their distribution channels. No listings on crypto exchanges, no integration with social media, and no love from legacy banks? You're toast.

Hayes lays it out plain and simple: "The only question you must ask yourself when evaluating an investment in a stablecoin issuer is this: how will they distribute their product? If they have no distribution, they have no chance of success. And if you can't easily verify that said issuer has the access to push product through one or more of these channels, run away!"

Get ready for the stablecoin bubble to pop. Hayes says it'll happen when some flashy stablecoin issuer goes public and rakes in billions from unsuspecting investors. They'll use a mix of financial wizardry, leverage, and pure showmanship to pull it off.

"A very bankable charismatic individual will get on stage and spew all sorts of nonsense, wave his (most likely a male) hands to and fro, and convince you why the leveraged piece of dogshit he is selling is about to corner the multi-trillion dollar stablecoin total addressable market (TAM)," Hayer writes.

But don't go shorting these stablecoin stocks just yet, Hayes warns. "These new stocks will rip the faces off of shorts." And Circle's shares? They'll "continue levitating" for now, even though Hayes thinks they're "insanely overvalued."

"Trade this shit like a hot potato," he cautions, and he's talking about both Circle and stablecoin stocks in general. So, what's the move? Keep your eyes peeled and your wits about you. The stablecoin game is about to get wild.