Stablecoin Boom Approaching Critical Mass, Warns Industry Expert

The stablecoin boom is just getting started, according to Arthur Heyes. IPO Circle is merely the warm-up before billions flood the market, leading to new pumps, new clowns, and another Terra/Luna scenario. The key insight emphasizes that controlling distribution channels is crucial; those who don't have control are essentially doomed. Distribution channels include major exchanges, Web2 social networks, and banking giants. Tether has already secured dominance by capturing the Global South and China, moving liquidity through Bitfinex, and now USDT functions as a digital dollar worldwide. The reason stablecoins are considered a lucrative business is that they convert fiat into US Treasuries, earning a profit margin, with Tether's profits being entirely theirs since they don't pay holders. Circle and other newcomers are giving away 50% of their profits from Coinbase for distribution, and soon, numerous clones will emerge, leading to inevitable investor losses. The final advice is to avoid shorting, enjoy the current upswing while it lasts, as this is a new bubble—play wisely. Previously, MP Dragonfly Capital shared the view that this is just the beginning of the trend.