Arthur Hayes Slams Monad | A High-Risk 'VC Coin' in Danger of 99% Plunge
Edited By
James O’Reilly
Former BitMEX CEO Arthur Hayes recently warned that Monad, a newly launched layer-1 blockchain, could plummet by 99%. He cites its high Fully Diluted Value (FDV) and low circulating supply as red flags for retail investors. Hayes argues that this venture capital-led project lacks long-term promise and stands among the many layer-1 networks likely to fail.
Context and Controversy
Hayes' comments spark debate in the crypto community. He claims that while some coins, like Bitcoin and Ethereum, have staying power, many newcomers will fade away. His contention that Monad is a 'VC coin' raises eyebrows, especially since it recently secured $225 million from Paradigm, launching with an airdrop of its MON token.
Subscribers across forums voiced mixed reactions. One commented, "Only the ones you buy, the rest are pumping," highlighting skepticism. Others accused Hayes of trying to manipulate the market, with a popular remark: "Rich piece of shit wants a better buy point and talks smack."
"This guy can go he sold his HYPE position for an $823K profit!" - Comment
Key Themes from the Commentary
Skepticism of 'VC Coins': Many commenters agree with Hayes, classifying Monad as another unremarkable VC-driven effort.
Market Manipulation Allegations: Critics suggest he is attempting to drive down the price to benefit his position.
Crypto Volatility Acknowledgment: Users recognize the inherent risk in cryptocurrency, countering any claims of surprise at the potential crash.
Community Sentiment
Hayes' remarks stirred a mix of reactions:
🔴 "You can’t trust this guy, that’s for sure."
🟢 "Time to go all in!"
🔵 "Interesting perspective, but let’s see what happens in five years."
Key Takeaways
🆘 Hayes warns Monad could crash, citing low supply and high FDV.
💰 "This sets a dangerous precedent" - Many see it as a risk.
🔍 Critics question Hayes' motives, citing past profits from HYPE.
As the crypto market evolves, the validity of Hayes' predictions about layer-1 projects will unfold, leaving investors to weigh the risks of engaging with what some deem to be just another venture capital gamble.
Predictions That Shape the Future of Monad
There’s a strong chance Monad could struggle in the coming months, especially if investor confidence wanes. Hayes' prediction of a potential 99% decline isn't just idle talk; many in the community feel a similar pessimism towards high FDV coins. If this trend continues, experts estimate around 60% of retail investors could pull out, further increasing downward pressure. Moreover, numerous layer-1 projects might find it challenging to maintain their traction. Expect heightened volatility as investors reassess their positions in light of impending risks.
Echoes of the Dot-Com Bubble
The current landscape of cryptocurrency and the scrutiny faced by Monad oddly mirrors the dot-com bubble of the late '90s. Back then, numerous tech startups flooded the market with flashy concepts, much like today’s venture capital-driven coins. Many of those projects were short-lived, echoing Hayes' warnings of unsustainable hype and overvaluation. Just as investors were swept up in the euphoria of internet potential, we now see a significant number lured by crypto's promise. This situation underscores a critical lesson: not every innovative idea is destined for success, and history often repeats when caution is thrown to the wind.