{"id":24752,"date":"2025-06-18T10:59:09","date_gmt":"2025-06-18T07:59:09","guid":{"rendered":"https:\/\/forklog.com\/en\/experts-warn-of-a-stablecoin-bubble\/"},"modified":"2025-06-18T10:59:09","modified_gmt":"2025-06-18T07:59:09","slug":"experts-warn-of-a-stablecoin-bubble","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/experts-warn-of-a-stablecoin-bubble\/","title":{"rendered":"Experts warn of a stablecoin bubble"},"content":{"rendered":"

The successful flotation of Circle will mark the start of a \u201cstablecoin mania\u201d, but most new issuers will fail, said<\/a> former BitMEX CEO Arthur Hayes.<\/p>\n

IPO<\/span> under the ticker CRCL took place<\/a> on June 5. Investors valued the company at $6.9 billion. On the first day of trading, the shares rose 168%<\/a> \u2014 from $31 to $82.<\/p>\n

At the time of writing, its market capitalisation is $36 billion, according to Yahoo.Finance<\/a>.<\/p>\n

\"Snimok-ekrana-2025-06-18-092645\"
Data: Yahoo.Finance.<\/figcaption><\/figure>\n

One of the major participants in the IPO was ARK Invest, run by Cathie Wood. On June 16 it sold<\/a> part of its holdings for $51.7 million, offloading 342,658 CRCL across three of its ETFs.<\/p>\n

\u201cThe bubble will burst\u201d<\/h2>\n

Hayes believes Circle\u2019s successful listing will trigger a wave of IPOs by copycats. He is convinced most will be overvalued and ultimately fail.<\/p>\n

The expert added that the bubble will burst after the debut of an issuer able to \u201cseparate fools from tens of billions of their capital\u201d. At the same time, the former BitMEX boss warned traders against shorting the shares of such firms.<\/p>\n

Georgy Verbitsky, founder of crypto-investment platform TYMIO, agrees that Circle\u2019s success could unleash a flood of overvalued issuers. Speaking to ForkLog, he said the effect is already visible: even small projects in the sector such as Plasma<\/a> are raising oversubscribed rounds. That confirms strong demand, which really could lead to a bubble.<\/p>\n

However, in Verbitsky\u2019s view, the key differentiators will be regulatory compliance and the right choice of jurisdiction. These will help separate viable issuers from bubble participants.<\/p>\n

\n

\u201cThat is precisely what underpinned Circle\u2019s success\u2014they built their business from the outset within the American legal system, where stablecoin regulation is now taking shape. This gave them the transparency and trust they needed. Unlike them, Tether still does not demonstrate the same level of regulatory sophistication, especially in the context of the United States,\u201d the expert noted.<\/em><\/p>\n<\/blockquote>\n

He added that only projects able to ensure reserve transparency, legal compliance and access to key markets through reliable jurisdictions will prove resilient.<\/p>\n

Lack of distribution<\/h2>\n

The main challenge for new issuers will be distribution channels, Hayes argues. In his view, to reach millions at scale they must use one of three routes:<\/p>\n