{"id":58162,"date":"2025-11-29T13:00:41","date_gmt":"2025-11-29T10:00:41","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=58162"},"modified":"2025-11-29T10:42:23","modified_gmt":"2025-11-29T07:42:23","slug":"arthur-hayes-issues-harsh-warning-this-coin-could-drop-99","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/arthur-hayes-issues-harsh-warning-this-coin-could-drop-99\/","title":{"rendered":"Arthur Hayes Issues Harsh Warning: \u201cThis Coin Could Drop 99%\u201d"},"content":{"rendered":"

Renowned crypto investor Arthur Hayes<\/strong><\/a> has delivered a sharp critique of Monad<\/strong><\/a>, arguing that the recently launched layer-1 blockchain carries an extreme collapse risk. According to Hayes, the project\u2019s token structure exposes retail participants to severe downside and could potentially result in losses as high as 99%.<\/p>\n

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Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n

  • High FDV and Low Circulating Supply: A Hazardous Combination<\/a><\/li>
  • Most Layer-1 Networks Fail to Survive<\/a><\/li>
  • Liquidity Expansion Could Ignite the Next Bull Market<\/a><\/li>
  • Privacy Technologies Set to Lead the Next Narrative<\/a><\/li><\/ul><\/nav><\/div>\n

    <\/span>High FDV and Low Circulating Supply: A Hazardous Combination<\/span><\/h2>\n

    Speaking on Altcoin Daily, the former BitMEX CEO described Monad as a classic example of a \u201chigh FDV, low-float VC token.\u201d Fully Diluted Value (FDV) represents the valuation of a project if all tokens were already released. Hayes emphasized that when there is a significant gap between FDV and the available circulating supply, the imbalance often creates dangerous market dynamics.<\/p>\n

    He noted that such projects typically see an early price surge, only to experience aggressive selloffs once insider or investor allocations begin unlocking. In his view, Monad fits this pattern: a token that might enjoy an initial rally but lacks evidence of long-term sustainable demand. \u201cA strong early pump does not imply lasting utility,\u201d he cautioned.<\/p>\n

    \"\"<\/p>\n

    <\/span>Most Layer-1 Networks Fail to Survive<\/span><\/h2>\n

    Hayes further argued that only a select few layer-1 protocols will maintain relevance over time. Historically, he said, new networks struggle to secure meaningful adoption. For the next market cycle, he believes only Bitcoin, Ethereum, Solana, and Zcash stand a realistic chance of remaining dominant.<\/p>\n

    Monad, meanwhile, raised $225 million in a funding round led by Paradigm last year and officially launched its mainnet recently, along with its native MON token.<\/p>\n

    <\/span>Liquidity Expansion Could Ignite the Next Bull Market<\/span><\/h2>\n

    Despite his skepticism toward Monad, Hayes maintains a broadly bullish outlook for the crypto market. He expects global liquidity to expand as the United States enters a politically charged period and economic growth softens, potentially prompting renewed monetary easing. He argued that the market is still in the early stages of this cycle, with major liquidity-driven rallies yet to unfold.<\/p>\n

    He also downplayed the traditional four-year Bitcoin cycle narrative, asserting that previous booms were shaped not by halvings but by global credit expansion led by the U.S. and China.<\/p>\n

    <\/span>Privacy Technologies Set to Lead the Next Narrative<\/span><\/h2>\n

    Looking forward, Hayes anticipates that privacy-focused solutions will play a central role in the next major trend. He expects zero-knowledge technologies and privacy coins to attract renewed attention, while institutions increasingly gravitate toward Ethereum for stablecoin and tokenization infrastructure. He also revealed that Zcash has become the second-largest holding in his family office, Maelstrom.<\/p>\n

    What is Monad Coin (MON)?<\/a><\/p><\/blockquote>\n