Arthur Hayes Warns Monad Could Plummet 99% | VC Coin Criticized
Edited By
Emma Thompson
A stark warning from Arthur Hayes, the former CEO of BitMEX, has sent ripples through the crypto community. He claims Monad, a new layer-1 blockchain, faces a potential 99% crash due to its inflated Fully Diluted Value (FDV) and meager circulating supply. This revelation raises serious concerns for retail investors.
Hayes' Critique of Monad
During discussions on various forums, Hayes labeled Monad as a high-risk, venture capital-driven ‘VC coin’, implying it lacks the resilience of established cryptocurrencies. He argues that the majority of new layer-1 networks are destined to fail, mentioning only a few giants like Bitcoin, Ethereum, Solana, and Zcash likely to survive in the long run.
"Most new layer-1 networks will fail; only a few will persist, like Bitcoin and Ethereum," he stated.
The commentary followed Monad’s successful raise of $225 million from Paradigm, coupled with an airdrop of its MON token. The skepticism surrounding the project is palpable among people engaged in online discussions.
Community Reactions
The reactions on user boards are mixed. Some users support Hayes' caution, saying:
"Shitcoins can crash?"
"This is a VC shitcoin."
Conversely, others view Hayes' comments as self-serving—claiming he aims to lower the price to enter at a better rate. One board member bluntly remarked,
"Rich piece of shit wants a better buy point."
Many users exhibit distrust towards Hayes, pointing out his past.
Notable Sentiment Shifts
The overall tone in the forums reflects a blend of skepticism and curiosity. While some echo Hayes’ warnings, others dismiss them as mere tactics for profit. As one participant noted,
"I’m still up $300. But yeah, that’s why I only put $1,000 in."
Key Observations
⚠️ 99% Crash Risk: Hayes argues there's a significant risk of collapse for Monad.
⬇️ Investor Caution Advised: Many community members warn against investing heavily in new projects like Monad.
😠 Distrust of Hayes: Some comments suggest Hayes is manipulative in his warnings.
With the volatile nature of the crypto market, is Hayes' warning something to heed, or just noise? Only time will tell as the crypto world watches closely.
Future Crypto Landscape for Monad
As the crypto scene evolves, the fate of Monad may hinge on broader market conditions and investor sentiment. With a significant chance—around 70%—of heightened scrutiny from both investors and regulators, Monad could face additional hurdles. If Hayes’ predictions hold true, we may see a swift decline in its value, especially if general market trends shift toward established cryptocurrencies. On the other hand, if Monad can somehow showcase tangible applications or attract a wider user base, the risk of a significant drop might lessen, suggesting about a 30% chance for a stabilizing future. Ultimately, the next few months will be crucial in determining if Monad can fortify its standing or if it will join the growing list of failed projects in a crowded market.
A Flicker in the Past
Consider the dot-com boom of the late 1990s. Tech firms with glitzy promises surged, fueling investment without sustainable fundamentals. Just like Monad, many of those companies rose on hype and glitter but ultimately crashed when reality set in. Amazon, for example, nearly faced oblivion yet rebounded and dominated e-commerce. The contrast between fleeting success and lasting stability resonates today, hinting that while Monad may echo the mistakes of the past, it could also serve as a lesson in resilience. Just as Amazon emerged from the chaos with solid ground, Monad may either fall away or find a way to innovate and survive amidst the noise.