Crypto

Key Points

• Spokane, Washington's second-largest city, has banned crypto ATMs to combat a surge in scams targeting local residents.
• The Spokane City Council unanimously voted to become the first city in Washington to implement this ban, with operators given 60 days to remove the machines.
• Council member Paul Dillon highlighted that crypto ATMs are often located in poorer neighborhoods and are used by scammers to defraud vulnerable individuals.
• Police and the FBI have reported significant increases in crypto ATM-related scams, with losses exceeding $246 million in 2024, often targeting the elderly.
• The city will monitor the ban's impact on reducing reported crimes involving crypto kiosks and report on its effectiveness.

Summary

Spokane, Washington’s second-largest city, has banned cryptocurrency ATMs following a unanimous City Council vote, becoming the first in the state to do so. The decision, proposed by Council member Paul Dillon, aims to protect vulnerable residents from a rising wave of scams associated with these kiosks, often located in poorer neighborhoods. Scammers frequently target unsuspecting individuals, including the elderly, by impersonating officials and coercing victims to transfer money into cryptocurrency to "protect" it, resulting in significant losses. The FBI reported over $246 million in losses from nearly 11,000 complaints related to crypto ATM scams in 2024, a 31% increase from the previous year. Operators in Spokane have 60 days to remove dozens of kiosks or face penalties, including business license revocation. The city plans to monitor the ban’s impact on reducing crypto-related crimes and will report on its effectiveness. This move reflects broader concerns about the misuse of crypto ATMs by fraudsters, with funds often traced to countries like China, North Korea, and Russia, as noted by local police.

Key Points

• Bitcoin price stabilizes around $105,000, with decreasing likelihood of dropping below $100,000 as liquidity builds above $106,000.
• The $100,000 level remains a critical psychological and support threshold, while flipping $106,000 into support is key for bullish momentum.
• Traders note potential upside with liquidation clusters above $106,000, which could drive prices toward $110,000 if breached.
• Recent price dips were influenced by external factors like US President Trump's comments on the Iran-Israel conflict, causing a 4% drop to $103,400.

Summary

Bitcoin's price is currently hovering around $105,000, showing resilience as the likelihood of falling below $100,000 diminishes, according to recent market analysis. Despite a 4% drop to $103,400 during late New York trading hours on Tuesday, triggered by US President Donald Trump’s remarks on the Iran-Israel conflict, BTC has maintained its position above the critical $100,000 psychological support level since reclaiming it on May 8. Traders, including Michael van de Poppe, suggest that while a correction to $100,000-$103,000 remains possible, a drop below $100,000 is less likely. Liquidity is building above $106,000, a key resistance level that, if flipped to support, could propel prices higher. Data from CoinGlass indicates significant ask orders clustering between $106,500 and $110,000, hinting at a potential liquidation squeeze that might drive Bitcoin toward $110,000 if $106,000 is breached. Analysts like CrypNuevo remain optimistic as long as the $100,000 support holds, emphasizing the importance of this level for market sentiment. The article underscores the volatility in the crypto market and advises readers to conduct their own research before making investment decisions, highlighting the inherent risks involved.

Key Points

• Central bank digital currencies (CBDCs) could make many payment-focused altcoins obsolete by offering fee-free, state-backed transactions.
• Cryptocurrencies with unique, hard-to-replicate features are likely to survive the rise of CBDCs.
• Altcoins that primarily function as payment rails may face complete replacement as CBDCs gain traction.
• Examples like the Bahamas’ Sand Dollar show CBDCs providing instant, low-cost transfers, challenging altcoins’ value proposition.
• Cross-border interoperability of CBDCs could further diminish the appeal of tokens like XRP, which focus on settlement efficiency.

Summary

Central bank digital currencies (CBDCs) are poised to disrupt the cryptocurrency landscape, particularly for altcoins focused on payment processing. As major economies edge closer to launching CBDCs, these state-backed digital currencies promise 24/7, fee-free transactions with built-in compliance, challenging the core appeal of many altcoins. The Bahamas’ Sand Dollar, the world’s first retail CBDC, exemplifies this threat by offering near-instant transfers without fees or foreign exchange costs. Similarly, the U.K. and Europe are exploring programmable features for digital currencies, while the U.S. evaluates CBDC impacts, with congressional reports suggesting direct competition with payment-focused cryptocurrencies rather than speculative or DeFi assets. Altcoins like XRP, which emphasize cross-border settlement efficiency, risk losing relevance if CBDCs achieve interoperability across borders—a feature under active testing. While cryptocurrencies with unique capabilities may endure, those merely serving as payment rails could be rendered superfluous. This looming shift raises critical questions for investors about the long-term viability of certain altcoins in a world where government-backed digital currencies could dominate everyday transactions.

Key Points

• EU's MiCA Regulation: Offers legal certainty and a harmonized framework across 27 member states, including passporting mechanisms that allow crypto service providers to operate EU-wide with a single license.**
• UK's Flexible Approach: Lacks a unified regulation like MiCA but focuses on innovation with its "Plan for Change," aiming to integrate crypto into existing systems and potentially boost the economy by $77 billion.**
• Strategic Domicile Decision: Fund managers must weigh the EU’s stability and scalability against the UK’s adaptability and openness to new decentralized products.**
• Complementary Roles: Rather than competing, the EU and UK may complement each other in shaping the future of digital assets with their distinct strengths.**

Summary

In her Cointelegraph opinion piece, Julie Bourgeois explores the critical decision crypto fund managers face in choosing between the EU and the UK as a domicile, given diverging regulatory landscapes. The EU’s Markets in Crypto-Assets (MiCA) regulation provides a unified, clear framework across 27 countries, with passporting benefits that enable seamless operations throughout the region, saving time and costs for scaling businesses. Conversely, the UK, post-Brexit, lacks a MiCA-equivalent but pursues an innovation-friendly “Plan for Change,” drafting laws to enhance transparency and protect users while fostering growth, potentially adding $77 billion to its economy. The UK’s flexibility, including discussions for a joint sandbox with the US, appeals to fintech pioneers, while the EU’s stability attracts those prioritizing institutional adoption and cross-border expansion, with Luxembourg emerging as a key hub. Bourgeois suggests that rather than competing, the EU’s regulatory clarity and the UK’s adaptability could complement each other in shaping the digital asset future, presenting fund managers with a strategic, not just legal, choice.

Key Points

• Tron’s Reverse Merger: Tron is undergoing a reverse merger with SRM Entertainment, rebranding as Tron Inc, with a treasury strategy centered on its native cryptocurrency, TRX, backed by a $100-million private investment.**
• Risk of TRX as Collateral: Using TRX as a corporate reserve asset is riskier than Bitcoin due to its thinner trading volume, central control, and close ties to the company, potentially creating a feedback loop if confidence falters.**
• Market Position and Activity: TRX ranks eighth in market cap at $26.2 billion and plays a significant role in stablecoin flows, particularly with Tether’s USDT, though it lags behind Bitcoin in institutional demand and trading volume.**
• Regulatory Concerns: Tron faces scrutiny from the SEC over allegations of selling unregistered securities, which could complicate its strategy if TRX is classified as a security.**

Summary

Tron, led by founder Justin Sun, is embarking on a bold reverse merger with SRM Entertainment, rebranding as Tron Inc and adopting a treasury strategy centered on its native cryptocurrency, TRX. Announced on June 16, this move, supported by a $100-million investment, aims to test TRX as a corporate reserve asset, a riskier approach compared to Bitcoin treasuries due to TRX’s lower trading volume and centralized nature. While TRX saw a 5% price spike post-announcement, experts warn of a potential feedback loop where a loss of confidence in Tron Inc could tank TRX’s value, further harming the company. TRX ranks eighth in market cap at $26.2 billion and is a key player in stablecoin flows, especially for Tether’s USDT, but lacks Bitcoin’s institutional backing. Additionally, Tron faces regulatory challenges, with the SEC alleging unregistered securities sales involving TRX. The involvement of politically connected figures like Eric Trump, who denies direct participation, adds scrutiny to the deal. Compared to Circle’s more transparent IPO route with USDC, Tron’s reverse merger raises questions about compliance and long-term viability, especially given past controversies with similar listing strategies. If successful, Tron Inc would be the first US company to hold its own blockchain’s token as a reserve, but the risks of circular collateral and regulatory hurdles loom large.

Key Points

• Bitcoin must hold above $102,000–$103,000 to indicate effective absorption of selling pressure and potential for a rebound, according to Bitfinex analysts.
• Downside risks persist for Bitcoin due to macroeconomic volatility and geopolitical tensions, such as military escalations between Israel and Iran.
• Despite uncertainties, Bitcoin presents a high-risk, high-reward opportunity if buyer confidence returns, with some analysts noting a resemblance to past capitulation-driven setups that often lead to price reversals.
• Spot Bitcoin ETFs have seen strong inflows, with six consecutive trading days of gains totaling $412.2 million as of June 16, reflecting sustained investor interest.
• Analysts have mixed views on Bitcoin’s trajectory, with some optimistic about structural momentum and others cautious about a potential plateau or future crypto winter.

Summary

Bitcoin faces ongoing downside risks but holds potential for a rebound if it maintains a price above $102,000–$103,000, as per Bitfinex analysts. Their Tuesday report highlights that sustained stability in this range could signal the market’s ability to absorb selling pressure. However, macroeconomic volatility and geopolitical tensions, including recent Israel-Iran military escalations, contribute to uncertainty, with Bitcoin dropping 2.8% to $103,053 following airstrikes before recovering slightly to $104,790. Despite a 0.25% decline over the past 30 days, spot Bitcoin ETFs have seen robust inflows of $412.2 million over six trading days. Analysts note a high-risk, high-reward scenario, with some seeing similarities to past setups where Bitcoin reversed after aggressive selling. Others, like trader Daan Crypto Trades, suggest the price may have stalled near its all-time high, emphasizing the importance of holding bull market support. While optimistic forecasts predict structural growth and momentum, skepticism remains about avoiding another crypto winter post-bull market. Historical data also points to the third quarter as Bitcoin’s weakest period, adding to cautious outlooks amidst mixed market sentiments.

Key Points

• Meta Pool Exploit: A hacker exploited Meta Pool's "fast unstake" functionality, minting 9,705 mpETH tokens worth nearly $27 million, but only managed to steal 52.5 ETH, valued at over $132,000, due to low liquidity in affected pools.**
• Early Detection: Meta Pool's early detection systems identified the exploit, enabling the team to pause the affected smart contract and prevent further unauthorized activity or losses.**
• Affected Pools: The attack impacted Ethereum mainnet and Optimism pools, though low liquidity and volume in some pools limited the hacker's profits.**
• Response and Recovery: Meta Pool has paused the mpETH contract, promised to reimburse lost assets, and plans to release a full post-mortem and recovery plan within two days.**

Summary

Meta Pool, a liquid staking protocol, suffered a security breach where a hacker exploited the "fast unstake" functionality to mint 9,705 mpETH tokens valued at nearly $27 million. However, due to low liquidity in the affected swap pools on Ethereum mainnet and Optimism, the attacker only managed to steal 52.5 ETH, worth just over $132,000. Meta Pool's early detection systems played a crucial role in identifying the exploit, allowing the team to pause the impacted smart contract and prevent further losses. The attack involved unauthorized token minting via the ERC4626 mint() function, as confirmed by co-founder Claudio Cossio and blockchain security firm PeckShield, which noted a critical bug in the staking contract. Despite the breach, Meta Pool assured users that staked Ethereum remains safe on the SSV Network. The team has committed to reimbursing affected users and ensuring they are made whole, with a detailed post-mortem and recovery plan expected within two days. This incident adds to a series of recent crypto exploits, including attacks on Alex Protocol and BitoPro, highlighting ongoing cybersecurity challenges in the industry.

Key Points

• Sweden's Vulnerability: Sweden's near-total reliance on digital payments is at risk due to potential cyberwarfare and infrastructure failures, prompting the government to advise citizens to keep physical cash as a backup.**
• Offline E-Cash Necessity: The need for an offline digital cash option is becoming critical globally, with countries like Sweden, the UK, and China exploring solutions to ensure economic continuity during crises.**
• Blockchain Potential: Ethereum co-founder Vitalik Buterin suggests blockchain technology could play a role in creating robust offline digital payment systems, though challenges like the double-spend problem remain.**
• Technical Challenges: Developing offline e-cash faces hurdles such as ensuring privacy, preventing duplication, and reliance on trusted hardware, with scalable solutions estimated to be 3-5 years away.**
• Social Impact: The shift to a cashless society in Sweden disproportionately affects vulnerable groups who lack access to digital payment methods, exacerbating social exclusion.**

Summary

Sweden, a pioneer in the cashless society movement, is reconsidering its heavy reliance on digital payments due to vulnerabilities exposed by the Ukraine-Russia conflict. Potential cyberwarfare and infrastructure failures, such as power grid disruptions, could cripple digital payment networks, prompting the Swedish government to urge citizens to keep physical cash as a precaution. The article highlights a growing global demand for offline digital cash solutions to ensure economic continuity during crises, with countries like the UK and China also exploring such options. Ethereum co-founder Vitalik Buterin suggests blockchain could help by enabling secure offline transactions, though challenges like the double-spend problem and privacy concerns persist. Experts estimate scalable, privacy-preserving offline payment systems are 3-5 years away, with interim solutions involving hybrid models like preloaded wallets. Additionally, the cashless trend in Sweden disadvantages vulnerable groups without access to digital payment tools, worsening social inequality. The discussion underscores the urgent need for resilient payment systems that balance technological innovation with inclusivity and security in an increasingly uncertain world.

Key Points

• US spot Bitcoin ETFs recorded $412.2 million in net inflows on Monday, extending a six-day streak with total cumulative inflows reaching $46.04 billion.
• BlackRock’s iShares Bitcoin Trust (IBIT) led with $266.60 million in inflows, contributing to its $50.03 billion total, while Fidelity’s FBTC added $82.96 million.
• Despite geopolitical tensions between Iran and Israel, institutional investors continue to show confidence in Bitcoin as a long-term hedge.
• Total net assets of US Bitcoin ETFs stand at $132.5 billion, representing 6.13% of Bitcoin’s market cap, with strong trading volume of $3.12 billion on Monday.
• Bitcoin experienced a 7% drop following an Israeli strike on Iran, but analysts suggest potential recovery if it holds the $102,000–$103,000 price zone.

Summary

US spot Bitcoin exchange-traded funds (ETFs) saw a significant $412.2 million in net inflows on Monday, marking a six-day streak that has amassed over $1.8 billion since June 9, with cumulative inflows now at $46.04 billion. BlackRock’s iShares Bitcoin Trust (IBIT) spearheaded the surge with $266.60 million, pushing its total to $50.03 billion, while Fidelity’s FBTC contributed $82.96 million. Despite escalating tensions between Iran and Israel, institutional investors remain undeterred, viewing Bitcoin as a resilient long-term hedge, as noted by Vincent Liu of Kronos Research. Total net assets of US Bitcoin ETFs have reached $132.5 billion, accounting for 6.13% of Bitcoin’s market cap, with Monday’s trading volume hitting $3.12 billion. However, an Israeli strike on Iran triggered a market sell-off, causing a 7% drop in Bitcoin’s price. Bitfinex analysts observed signs of capitulation but suggest that if Bitcoin holds the $102,000–$103,000 range, it could signal absorbed selling pressure and a potential recovery. This sustained ETF inflow reflects growing trust in Bitcoin’s accessibility and role in a volatile macroeconomic environment.

Key Points

• About 40% of $TRUMP buyers have lost money on their investments, according to Chainalysis data reported by CNBC.
• $TRUMP is currently trading at just over $10, approximately 85% below its all-time high of $73.43.
• Political tokens like $TRUMP may represent a new category of meme coins dubbed 'PolitiFi,' blending politics with cryptocurrency.
• The token's ownership and management lack transparency, with strong ties to entities close to the Trump family.

Summary

The article discusses the Official Trump ($TRUMP) meme coin, a cryptocurrency built on the Solana blockchain, launched just before the 2025 presidential inauguration. Explicitly not intended as an investment, $TRUMP is marketed as a way to support ideals associated with its symbol. However, it has proven risky for many, with Chainalysis data indicating that 40% of buyers have lost money, while insiders have profited significantly, earning over $324 million in trading fees. Currently trading at around $10, the token is down 85% from its peak of $73.43. The article introduces 'PolitiFi,' a new crypto trend merging politics and meme coins, exemplified by $TRUMP and others like $MELANIA and LIBRA, the latter tied to a scandal in Argentina. Ownership of $TRUMP is opaque, with 80% controlled by entities linked to the Trump family, raising ethical and regulatory concerns. The piece advises against viewing $TRUMP as a long-term investment due to its speculative nature, insider control, and lack of transparency, suggesting alternatives like Bitcoin or Solana for those interested in crypto. Ultimately, it highlights the high risks and potential for manipulation in meme coins, especially those tied to political figures, urging caution among potential investors.

Key Points

• Corporate Adoption: Some corporate treasuries are accumulating XRP reserves, with examples like VivoPower allocating $100 million through BitGo, signaling growing institutional interest and potential price appreciation due to reduced supply on exchanges. **
• Technological Upgrade: The XRP Ledger's activation of automated market maker (AMM) pools enhances liquidity, reduces transaction costs, and speeds up settlements, making it more attractive to banks and institutional investors. **
• Regulatory Clarity: The SEC's withdrawal of its final appeal in 2024, confirming that public sales of XRP are not securities, reduces litigation risks and boosts confidence among retail and institutional investors. **

Summary

XRP, developed by Ripple, aims to revolutionize cross-border payments by addressing inefficiencies of traditional systems like SWIFT, which are slow and costly. In 2025, three major catalysts are driving XRP's potential to become a significant investment. First, institutional adoption is growing, with corporate treasuries like VivoPower investing heavily in XRP for both appreciation and liquidity, potentially driving prices up as supply on exchanges shrinks. Second, a key upgrade to the XRP Ledger with automated market maker (AMM) pools enhances liquidity and reduces costs, making it more appealing to banks for large transactions. Lastly, regulatory clarity has emerged as the SEC dropped its appeal, affirming that XRP sales on public exchanges are not securities, thus lowering investment risks. Combined, these factors—real-world usage, improved technology, and a favorable regulatory environment—position XRP as a cryptocurrency with significant upside potential. While not guaranteed to make investors millionaires, the article suggests that XRP could be a solid long-term investment, especially as more institutions adopt it for its utility in global finance.

Key Points

• Brad Mills, a Bitcoin maximalist, predicts a 100x price increase for Bitcoin over the next 10-20 years, potentially reaching $10 million, driven by institutional adoption, halving-induced scarcity, and technological advancements.
• The US Strategic Bitcoin Reserve, starting with 200,000 BTC, signals a policy shift towards long-term government holding of Bitcoin, potentially reducing market volatility.
• Mills highlights the “SaylorCycle,” a decade-long growth phase influenced by Michael Saylor’s strategies and corporate/national Bitcoin hoarding, as seen with El Salvador’s holdings.
• Technological developments like Square’s Lightning Network payments and Chaumian eCash mints are expected to boost retail adoption and transactional use of Bitcoin.
• Counterviews, such as Blockstream CEO Adam Back’s “parabolic breakout” theory, suggest Bitcoin might deviate from traditional cycles, experiencing steeper surges due to growing adoption.

Summary

Bitcoin maximalist Brad Mills predicts a staggering 100x price surge for Bitcoin (BTC) over the next 10-20 years, potentially reaching $10 million, driven by institutional adoption, halving-induced scarcity, and retail-focused tech innovations like Square’s Lightning Network payments. Mills introduces the concept of a “SaylorCycle,” a decade-long growth phase inspired by Michael Saylor’s influence and corporate Bitcoin accumulation, alongside national reserves like El Salvador’s. The US Strategic Bitcoin Reserve, initiated with 200,000 BTC, marks a significant policy shift towards long-term government holding, potentially stabilizing market dynamics. While Mills anticipates softer bear market drops and stronger bull runs, Blockstream CEO Adam Back suggests a “parabolic breakout” could lead to even steeper price surges, challenging traditional models. However, skeptics and analysts note that such forecasts depend on regulatory clarity and sustained institutional demand, with external macroeconomic forces possibly overshadowing internal price drivers like halving cycles. This evolving landscape positions Bitcoin as a potential global strategic asset akin to gold.

Key Points

• Gemini and Coinbase are reportedly close to securing EU licenses under the MiCA framework, with Gemini receiving approval from Malta and Coinbase from Luxembourg.
• The Markets in Crypto-Assets (MiCA) regulations, effective since June 2024, aim to ensure regulatory consistency, investor protection, and financial stability across the EU.
• Other major exchanges like Bybit and Binance have also adapted to MiCA, with Bybit gaining approval in Austria and Binance updating procedures in Poland.
• MiCA has sparked debate over stablecoin regulations, particularly a requirement for reserves to be held in European banks, leading Tether to opt out of registration.
• Stablecoin adoption under MiCA remains limited, with interest in the EU shifting toward custodial and trading services, as noted in Italy.

Summary

Crypto exchanges Gemini and Coinbase are poised to expand their operations in the European Union by securing licenses under the Markets in Crypto-Assets (MiCA) framework, with Gemini gaining approval from Malta and Coinbase from Luxembourg, according to Reuters. MiCA, effective since June 2024 with full implementation by December, seeks to standardize regulations, enhance investor protection, and ensure financial stability across the EU. Other exchanges, including Bybit and Binance, have also aligned with MiCA, securing approvals or updating operations. However, the framework has faced criticism, particularly over stablecoin rules requiring reserves to be held in European banks, prompting Tether to forgo registration while ten other stablecoins, including those from Circle, have been approved. Despite this, stablecoin adoption remains low in key markets like Italy, where interest is shifting toward custodial and trading services, as highlighted by Bank of Italy Governor Fabio Panetta. While MiCA brings clarity to the crypto space, uncertainties persist, especially around stablecoin regulations, shaping a complex landscape for industry players in the EU.

Key Points

• Michael Saylor, Strategy co-founder, signaled an upcoming Bitcoin purchase by the company on Monday, despite the Israel-Iran conflict potentially unsettling global financial markets.
• Strategy's latest Bitcoin acquisition on June 9 added 1,045 BTC, worth about $110 million, increasing their total holdings to 582,000 BTC, with over $20 billion in unrealized gains.
• Bitcoin's price remained stable at around $105,000, dropping only 3% after Israel's airstrikes on Tehran, while BTC ETFs saw $1.3 billion in net inflows this week.
• The Crypto Fear & Greed Index at 60 indicates investor "greed" and bullish sentiment for digital assets amid geopolitical tensions.
• Analysts warn that Iran closing the Strait of Hormuz could spike energy prices, negatively impacting risk assets like cryptocurrencies in the short term.

Summary

Michael Saylor, co-founder of Strategy, has hinted at an imminent Bitcoin purchase set for Monday, coinciding with the opening of traditional financial markets, despite escalating tensions in the Middle East due to the Israel-Iran conflict. Strategy recently acquired 1,045 BTC on June 9, valued at $110 million, boosting their holdings to 582,000 BTC with over $20 billion in unrealized gains. Bitcoin's price has shown resilience, holding steady at $105,000 after a minor 3% dip following Israel's airstrikes on Tehran. Meanwhile, Bitcoin ETFs recorded $1.3 billion in net inflows this week, reflecting investor confidence amid geopolitical uncertainty, trade tariffs, and U.S. economic concerns. The Crypto Fear & Greed Index at 60 signals bullish "greed" among investors. However, market analyst Nic Puckrin cautions that if Iran closes the Strait of Hormuz—a critical oil route handling 20% of global supply—energy price spikes could adversely affect risk assets like cryptocurrencies in the near term. As global markets brace for potential volatility, Saylor's move underscores Bitcoin's appeal as a hedge against uncertainty, even as broader economic impacts loom.

Key Points

• Analysts predict a potential 530% rally for XRP, targeting a price of $14, if a bull pennant breakout occurs similar to the 2017 price action.
• XRP needs to reclaim the 200-day SMA at $2.37 and turn resistance between $2.37 and $2.65 into support to sustain an uptrend.
• The current XRP price consolidation between $2.05 and $2.40 mirrors a bull pennant pattern, a bullish continuation setup.
• Breaking above key resistance levels like $2.27 (50-day SMA) and $2.65 could pave the way for XRP to reach $3.00 or higher.

Summary

XRP, currently trading between $2.05 and $2.40, is showing signs of a potential massive rally, with analysts predicting a 530% surge to $14 if a bull pennant breakout occurs, mirroring the 2017 price action that led to all-time highs. Crypto analyst Mikybull Crypto highlighted similarities between the current three-week and weekly chart patterns and the 2017 setup, which resulted in a 1,300% increase. For this bullish scenario to unfold, XRP must break key resistance levels, including the 50-day SMA at $2.27 and the 200-day SMA at $2.37, turning them into support to aim for $3.00 or beyond. Additional optimism comes from predictions of even higher targets, such as $25, if a spot XRP ETF is approved in the U.S. However, the price has been consolidating below $3.00 since February, and a sustained recovery hinges on overcoming these technical barriers. While the relative strength index indicates a recovery from oversold conditions, investors are cautioned to conduct their own research due to the inherent risks in cryptocurrency trading.

Key Points

• Arthur Hayes warns that most new stablecoin issuers following Circle’s successful IPO will be overvalued and likely fail due to limited distribution channels.
• Hayes advises trading new stablecoin stocks like a “hot potato” due to initial price surges driven by pro-crypto sentiment, but cautions against shorting them.
• Distribution channels for stablecoins are locked by existing players, making success difficult for new entrants without access to crypto exchanges, social media giants, or legacy banks.
• Circle (CRCL) is considered “insanely overvalued” by Hayes, despite its share price surging over 80% since its IPO on June 5.
• Upcoming US stablecoin legislation, with a Senate vote on June 17, could further fuel the stablecoin mania if passed.

Summary

BitMEX founder Arthur Hayes has issued a stark warning about the emerging wave of stablecoin companies attempting to replicate Circle’s successful initial public offering (IPO) on June 5. In a recent post, Hayes described the current trend as the start of “stablecoin mania,” predicting that most new public stablecoin issuers will be overvalued and doomed to fail due to inaccessible distribution channels, which are dominated by crypto exchanges, social media giants, and legacy banks. He advises investors to trade these stocks like a “hot potato” due to initial price surges fueled by pro-crypto sentiment in the US, though he warns against shorting them as prices may spike. Hayes also critiques Circle (CRCL), calling it “insanely overvalued” despite its share price soaring over 80% since listing. Additionally, he notes that new entrants face high costs or must yield to existing players, while social media and banks may develop their own stablecoins. The upcoming US Senate vote on stablecoin legislation on June 17 could further amplify this trend if passed, potentially sparking a global wave of new stablecoins, as echoed by Chainlink co-founder Sergey Nazarov. Hayes remains skeptical, humorously anticipating the failure of many new issuers who might deceive investors with financial engineering and showmanship.