Crypto veteran Arthur Hayes has issued a warning over Monad, saying the just lately launched layer-1 blockchain may plunge as a lot as 99% and find yourself as one other failed experiment pushed by enterprise capital hype fairly than actual adoption.
Talking on Altcoin Day by day, the previous BitMEX chief described the venture as “one other excessive FDV, low-float VC coin,” arguing that its token construction alone places retail merchants in danger. FDV stands for Totally Diluted Worth, which is the market worth of a crypto venture if all its tokens have been already in circulation.
In accordance with Hayes, tasks with a big hole between FDV and circulating provide usually expertise early value spikes, adopted by deep selloffs as soon as insider tokens unlock. “It’s going to be one other bear chain,” Hayes stated, including that whereas each new coin will get an preliminary pump, that doesn’t imply it can develop an enduring use case.
Hayes stated most new layer-1 networks finally fail, with solely a handful prone to retain long-term relevance. He named Bitcoin (BTC), Ether (ETH), Solana (SOL) and Zcash (ZEC) because the small group of protocols he expects to outlive the following cycle.
Final yr, Monad raised $225 million in funding from enterprise capital agency Paradigm. The layer-1 blockchain went reside on Monday, accompanied by an airdrop of its MON token.
Cointelegraph reached out to Monad for remark, however had not acquired a response on the time of publication.
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Hayes stays bullish
Hayes additionally laid out a bullish outlook for crypto as a complete, pushed virtually solely by renewed financial growth. He argued that governments, notably the USA, are making ready for one more wave of liquidity injections forward of political campaigns and slowing development.
“I believe that we’re on the finish of the start of this cycle and the huge quantities of loopy bull market cash printing is forward of us,” he stated.
He additionally dismissed the broadly cited four-year Bitcoin cycle, saying previous market booms have been fueled not by halvings however by international credit score growth led by the US and China. When liquidity dries up, Bitcoin reacts first, he stated, calling it the “final free-market smoke alarm” for the worldwide monetary system.
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Privateness cash to dominate
Trying forward, Hayes predicted privateness applied sciences will dominate the following crypto narrative, with zero-knowledge techniques and privateness cash seeing renewed curiosity. He added that institutional adoption is prone to decide on Ethereum, particularly via stablecoins and tokenized finance.
Earlier this month, he revealed that Zcash has turn into the second-largest holding in his household workplace Maelstrom, trailing solely Bitcoin.
Journal: 2026 is the yr of pragmatic privateness in crypto — Canton, Zcash and extra
