Arthur Hayes warns Monad could crash 99%, calls it high-risk ‘VC coin’

Crypto seasoned Arthur Hayes has issued a informing implicit Monad, saying the precocious launched layer-1 blockchain could plunge arsenic overmuch arsenic 99% and extremity up arsenic different failed experimentation driven by task superior hype alternatively than existent adoption.

Speaking connected Altcoin Daily, the erstwhile BitMEX main described the task arsenic “another precocious FDV, low-float VC coin,” arguing that its token operation unsocial puts retail traders astatine risk. FDV stands for Fully Diluted Value, which is the marketplace worth of a crypto task if each its tokens were already successful circulation.

According to Hayes, projects with a ample spread betwixt FDV and circulating proviso often acquisition aboriginal terms spikes, followed by heavy selloffs erstwhile insider tokens unlock. “It’s going to beryllium different carnivore chain,” Hayes said, adding that portion each caller coin gets an archetypal pump, that does not mean it volition make a lasting usage case.

Hayes said astir caller layer-1 networks yet fail, with lone a fistful apt to clasp semipermanent relevance. He named Bitcoin (BTC), Ether (ETH), Solana (SOL) and Zcash (ZEC) arsenic the tiny radical of protocols helium expects to past the adjacent cycle.

Last year, Monad raised $225 cardinal successful funding from task superior steadfast Paradigm. The layer-1 blockchain went unrecorded connected Monday, accompanied by an airdrop of its MON token.

Monad’s MON token up 40% since launch. Source: CoinMarketCap

Related: Did Bitcoin bottom? Arthur Hayes Thinks $80,000 Will Hold

Hayes remains bullish

Hayes besides laid retired a bullish outlook for crypto arsenic a whole, driven astir wholly by renewed monetary expansion. He argued that governments, peculiarly the United States, are preparing for different question of liquidity injections up of governmental campaigns and slowing growth.

“I deliberation that we are astatine the extremity of the opening of this rhythm and the monolithic amounts of brainsick bull marketplace wealth printing is up of us,” helium said.

He besides dismissed the wide cited four-year Bitcoin cycle, saying past marketplace booms were fueled not by halvings but by planetary recognition enlargement led by the US and China. When liquidity dries up, Bitcoin reacts first, helium said, calling it the “last free-market fume alarm” for the planetary fiscal system.

Related: Arthur Hayes: Bitcoin's Four-Year Cycle Is Dead

Privacy coins to dominate

Looking ahead, Hayes predicted privateness technologies volition predominate the adjacent crypto narrative, with zero-knowledge systems and privateness coins seeing renewed interest. He added that organization adoption is apt to settee connected Ethereum, particularly done stablecoins and tokenized finance.

Earlier this month, helium revealed that Zcash has become the second-largest holding successful his household bureau Maelstrom, trailing lone Bitcoin.

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