Concerns Raised Over Monad’s Future in Crypto Market
Arthur Hayes, a seasoned figure in the crypto sector, recently expressed serious concerns regarding Monad. He warned that this newly launched layer 1 blockchain might see its value plummet by as much as 99%. Hayes believes that Monad is more of a product of venture capital buzz rather than genuine user adoption.
During a discussion on Altcoin Daily, Hayes, the former leader of BitMEX, characterized Monad as a “high FDV, low float VC coin.” He pointed out that the very structure of its token could endanger retail investors. For clarification, FDV stands for Fully Diluted Value, which indicates a project’s market value if all its tokens were circulating.
Hayes noted that projects with a significant disparity between FDV and actual circulating supply typically experience an initial price surge. However, he cautioned that a major drop often follows once tokens held by insiders are released. “There will be another bearish chain,” he stressed, emphasizing that while many new coins see a brief spike, it doesn’t guarantee they’ll find a sustainable purpose.
He remarked that most new Layer 1 networks ultimately fail, only a few can maintain relevance over time. In this context, he highlighted Bitcoin (BTC), Ether (ETH), Solana (SOL), and Zcash (ZEC) as examples of protocols he anticipates will endure through the next market cycle.
Last year, Monad secured $225 million in funding from the venture capital firm Paradigm. It launched on Monday, accompanied by an airdrop of its MON tokens.
Cointelegraph attempted to reach out to Monad for comments but had not received a response by the time of publication.
Hayes Remains Optimistic about the Crypto Landscape
Despite his caution regarding Monad, Hayes shared a positive outlook for cryptocurrencies at large, largely fueled by upcoming financial expansions. He suggested that governments, particularly in the US, are gearing up for a fresh wave of liquidity injections as political campaigns ramp up and economic growth slows.
He also dismissed Bitcoin’s often-quoted four-year cycle, arguing that previous market booms were spurred by global credit expansion from the US and China instead of the halving process. Referring to Bitcoin, he called it the “last free market fire alarm” for the global financial system, indicating that it would be among the first to react when liquidity starts to thin out.
Anticipating a Shift Towards Privacy Technologies
Looking ahead, Hayes foresaw that zero-knowledge systems and privacy coins would attract renewed attention, with privacy tech potentially becoming a key narrative in the cryptocurrency landscape. He also suggested that institutional interest might settle more on Ethereum, particularly through stablecoins and tokenized finance.
Earlier this month, he disclosed that Zcash had climbed to become the second-largest asset in his family office, Maelstrom, following Bitcoin.
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