Arthur Hayes: The prospects of Circle IPO imitators are worrisome, and stock trading is like a "hot potato".

Gate News bot message, industry KOL Arthur Hayes pointed out in an article on Monday that although Circle’s IPO marks the beginning of the “stablecoin craze,” most stablecoin companies trying to follow its path will ultimately be overvalued and eventually fail.

“This listing marks the beginning of a frenzy for stablecoins, not the end,” he added, stating that such companies will eventually burst like a bubble, and investors should “trade these companies’ stocks like hot potatoes.”

However, Hayes did not urge traders to short these stocks, as the U.S. policy direction supporting the cryptocurrency industry and the rhetoric of “stablecoin mania” would initially drive up the related stock prices. He warned, “These new stocks will completely crush the short sellers.”

Source: Cointelegraph