The divestment affected three of Ark’s exchange-traded funds (ETFs). According to the firm’s trading file obtained by CryptoSlate, ARK Innovation ETF (ARKK) offloaded 196,367 shares. Meanwhile, the ARK Next Generation Internet ETF (ARKW) sold 92,310 shares, and the ARK Fintech Innovation ETF (ARKF) parted with 53,981 shares.
“To be clear, Circle is grossly overvalued, but the price will continue levitating.”
According to him, Circle’s IPO success could trigger a wave of lookalike stablecoin projects with flimsy business models. He said the sector’s current excitement might echo the lead-up to the TerraUSD collapse, especially if US regulation remains light.
Hayes noted that future issuers would exploit market momentum and lean on traditional finance credentials to raise funds, even without solid fundamentals.
According to him:
“A very bankable charismatic individual will get on stage and spew all sorts of nonsense, wave his (most likely a male) hands to and fro, and convince you why the leveraged piece of dogshit he is selling is about to corner the multi-trillion dollar stablecoin total addressable market (TAM).”
Hayes continued that this avalanche of copycats would eventually populate the bubble and collapse the market. He said:
“The bubble will pop after the launch of a stablecoin issuer on a public market, most likely in the US, that separates fools from tens of billions of capital by using a combination of financial engineering, leverage, and amazing showmanship.”
