Arthur Hayes, co-founder of BitMEX and a familiar voice in crypto commentary, has delivered a bold message to traders: when stablecoin firms go public, don’t get too cosy—dive in, cash in, and bail out quickly.
In his latest piece, “Assume the Position,” Hayes offers a pointed take on the coming surge of stablecoin IPOs. While they might seem like golden opportunities on the surface, he says they’re best treated like hot potatoes—catch them while they’re hot, but don’t hang on too long.
Arthur Hayes Alerts Traders: Handle Stablecoin IPOs with Caution ( Image Source: DL News )
A Fast Game with No Comfort Zone
Hayes throws out the traditional investment playbook. These IPOs, he argues, aren’t designed for slow and steady returns. They’re quick trades—fuelled by hype, designed to reward speed over patience.
With major players like Circle, the issuer of USDC, rumoured to be heading for public listings, Hayes sees little value in holding their stock long-term. These companies, he insists, are built for quick gains, not enduring value.
Traders who enter early might ride the wave, but those who linger risk being left with underperforming assets.
Why the Urgency Now?
Hayes’ warning isn’t just speculative. It comes as traditional finance grows ever more entangled with the crypto world. Stablecoin issuers are dressing up their decentralised products to win over Wall Street. But according to Hayes, that shiny packaging hides a fragile business model.
These firms generate revenue largely by earning interest on US government bonds using customer funds. That edge, he notes, is temporary. Once tighter regulation hits or interest rates shift, those returns vanish.
At that point, the IPO glow fades—and fast.
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The Next Wave of Crypto IPOs
Circle is only the beginning. More stablecoin-focused companies are eyeing the public market. To many observers, this marks a coming-of-age moment for the crypto sector. Hayes, however, sees a trap.
He argues these IPOs are built to lure in retail investors chasing the next big thing. The corporate suits, investor roadshows, and slick branding serve one purpose: to push up the share price in the early days.
Once the first quarterly results roll out and real numbers replace the dream, enthusiasm could take a dive.
Hayes’ Strategy: Get In, Get Out
So, how should traders approach this new trend? Hayes lays it out clearly.
Jump in early—when the hype is thick, social media is buzzing, and optimism hasn’t been tested. Watch the market closely, track the narrative, and don’t get greedy.
The moment reality sets in—usually with the first earnings report—get out. These IPOs are short plays, not long hauls.
The key, Hayes insists, is to play smart, not loyal.
Beyond Trading: A Decentralisation Wake-Up Call
Hayes’ message isn’t just about trading tactics. It also cuts to the heart of what crypto stands for. He criticises the irony of companies promoting decentralised currencies while relying on centralised revenue streams.
In short, these stablecoin firms build their business on the back of traditional finance—earning off US Treasuries and fiat-based arbitrage. That model doesn’t align with crypto’s core values of transparency, autonomy, and decentralisation.
For Hayes, backing these IPOs long-term is like betting against the very ethos of crypto.
⚡️ TODAY: BitMEX co-founder Arthur Hayes calls Circle’s IPO the start of a “stablecoin mania” bubble.
He warns most new issuers will be overvalued and doomed without distribution via crypto exchanges, banks, or social media giants. pic.twitter.com/6OPE5FG2yN
— Cointelegraph (@Cointelegraph) June 17, 2025
What Retail Traders Need to Know
If you’re relatively new to the space, Hayes’ take might sound dramatic. But it’s born from experience in volatile, fast-paced markets. His point isn’t to scare off investors—it’s to prepare them for the game they’re playing.
Stablecoin IPOs aren’t gifts—they’re gambles. And in this high-speed environment, success depends on timing, awareness, and emotional discipline.
Buy in with clear goals, and sell before the market sobers up.
Final Thoughts: It’s a Trade, Not a Relationship
In an age where many traders pride themselves on ‘diamond hands’—holding assets no matter the market swings—Hayes delivers a different kind of truth.
Not every asset is meant to be held forever. Some, like stablecoin IPOs, are best approached as tactical opportunities. No emotion. Just execution.
When the music stops, the last person holding the hot potato loses. Hayes’ advice? Be the one who already walked away with profits in hand.
