Arthur Hayes Warns Of Circle Copycat Stablecoin IPO Mania

A flood of doomed “Circle copycats” is about to hit the stock market and investors should treat them like “hot potatoes,” said BitMEX co-founder Arthur Hayes.

In a June 16 blog post, Hayes says Circle’s blockbuster New York Stok Exchange debut has kicked off a new gold rush. He predicts a wave of stablecoin startups will now try to mimic USDC’s issuer by going public, adding that most will fail spectacularly.

“This cycle’s stablecoin mania has begun,” Hayes said. “The bubble will pop after the launch of a stablecoin issuer on a public market, most likely in the US, that separates fools from tens of billions of capital by using a combination of financial engineering, leverage, and amazing showmanship.”

Despite calling Circle’s valuation “insanely overvalued,” Hayes said copycat listings could initially skyrocket, just like Circle’s 168% rally. But without distribution deals with exchanges, banks, or social platforms, he says, “these companies have no chance of success.” 

Because of their initial success, “these new stocks will rip the faces off of shorts,” he added. 

Trade “Circle Copycats” Like “A Hot Potato,” Says Arthur Hayes

Hayes predicted a wave of listings from what he called, “Circle Copycats,” who will all try to replicate the IPO success of USDC’s issuer. “Trade this sh*t like you would a hot potato,” he said.

The NYSE welcomes @circle in celebration of its IPO! For over a decade, Circle has connected traditional finance and digital assets, seeking to create a secure, always-on digital economy. $CRCL@jerallaire pic.twitter.com/YnHL34puz7

— NYSE 🏛 (@NYSE) June 5, 2025

His remarks follow Circle’s successful public debut on the New York Stock Exchange (NYSE) on June 5, which saw the company’s shares soar 168%.

Hayes said Circle’s share price will likely “continue levitating” amid progress on pro-crypto and stablecoin legislation in the US. That’s as the US Senate prepares to vote on key stablecoin legislation later today, which could inject additional momentum into the stablecoin market. 

New Companies In Stablecoin Mania Have Slim Chance Of Success

According to Hayes, any new companies looking to capitalize on the stablecoin mania will have to build strong distribution channels in order to succeed. He highlighted crypto exchanges, Web2 social media giants and legacy banks as viable distribution options.

Without those channels, Hayes says new stablecoin issuers have “no chance of success.” 

He said that key distribution channels have already been locked up by existing players, making it more difficult for new companies to succeed in the market.

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