BitMEX founder Arthur Hayes expressed his concerns regarding the upcoming IPOs of stablecoin companies, urging investors to exercise caution.
Warning About Stablecoin IPOs
In a blog post published on Monday, Hayes urged investors to treat new IPOs like 'hot potatoes', suggesting that they are highly risky and likely to be overhyped.
Market Expectations and Predictions
Following Circle's successful IPO in early June, Hayes believes we are at the start of a 'stablecoin mania'. Despite Circle's stock surging over 80%, Hayes calls them 'insanely overvalued'.
Critique of New Stablecoin Issuers
Hayes also cautioned that new companies might lack the necessary backing for success. He emphasized that without strong partnerships with crypto exchanges or banks, newcomers in stablecoins 'stand no chance'. Moreover, he does not recommend shorting these stocks due to growing support for cryptocurrencies in the U.S.
Hayes concludes his remarks with a sharp critique of new issuers, labeling them as 'suited-up clowns' utilizing financial tricks and showmanship to promote their companies.
