Hayes Calls Monad a ‘VC Coin,’ Says Token Design Makes It Vulnerable

• Hayes slammed Monad as just another overvalued VC-backed coin that’s primed for a brutal crash.
• He expects privacy tech to surge while broad crypto gains hinge on looming liquidity waves.

Arthur Hayes, former CEO of BitMEX, has criticized Monad, calling it a “VC coin” vulnerable to collapse. Speaking on Altcoin Daily, Hayes argued that Monad’s high fully diluted valuation (FDV) and low token float create an unstable setup. He believes such token structures pose a real danger to smaller investors once insider tokens begin unlocking.

FDV, the projected value if all tokens are released, often drives early hype. Hayes explained that this leads to short-term price boosts, followed by significant drops once insiders sell. “It’s going to be another bear chain,” he said, warning that temporary surges don’t guarantee lasting success.

Monad recently secured $225 million in funding from Paradigm, a venture capital firm known for backing high-profile crypto projects. The project officially launched on Monday, alongside the airdrop of its MON token.

Most Layer-1 Chains Don’t Survive, Hayes Says

According to Hayes, the crypto market is overcrowded with experimental chains that don’t last beyond initial hype cycles. While most new layer-1 platforms promise innovation, he argued that only a select few will remain relevant. He identified Bitcoin, Ethereum, Solana, and Zcash as the only platforms he believes will survive.

Hayes anticipates privacy coins and zero-knowledge technologies could form the next major focus within the crypto market. He revealed that Zcash (ZEC) is now the second-largest asset in his family office, Maelstrom, behind only Bitcoin. Hayes also expects institutions to increase their use of Ethereum, particularly through stablecoins and financial tokenization. In contrast to speculative assets, he views Ethereum as the likeliest choice for institutional applications.

Hayes Projects Wider Crypto Growth

Though critical of Monad, he remains confident in the broader crypto market. He sees U.S. monetary policy as a major tailwind. In his view, upcoming liquidity injections will push capital into digital assets. He said,

Hayes rejected the idea that Bitcoin price cycles are tied to halving events. He argued that liquidity, not technical features, drives price movements. According to him, Bitcoin is the “last free-market smoke alarm,” reacting sharply to changes in global liquidity trends.

Hayes also reaffirmed his Bitcoin price forecast, stating on November 26 during the Milk Road Show that he still expects Bitcoin to reach between $200,000 and $250,000 by the end of 2025. “I’m going to stick with it,” he said.