Golden Finance News: Arthur Hayes, the co-founder of BitMEX, recently published an article to conduct an in-depth analysis of the stablecoin market. He pointed out that the key factor determining whether stablecoins can succeed lies in the distribution channels. At present, stablecoins are mainly distributed through crypto exchanges, social media platforms or traditional banks.
Specifically, Tether, through its cooperation with Bitfinex and the trust it has accumulated in the Greater China region, has become the “leader” of global stablecoins, especially with a significant advantage in the global Southern market. Circle chose to cooperate with Coinbase to distribute USDC, but its market share is still lower than that of Tether.
Hayes reminds investors that new projects entering the stablecoin market will face the problem of blocked distribution channels. He also predicted that once Circle successfully completes its initial public offering (IPO), the bubble in the stablecoin market will further expand, but eventually burst due to some project that “reaps the profits”. Furthermore, Hayes emphasized that although stablecoin issuers can earn high profits from Treasury bond yields, investors must be vigilant about the risks brought about by high valuations, especially those projects that claim to be able to cooperate with traditional banks but lack actual and effective distribution channels. They should be treated with even greater caution.
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