Arthur Hayes Slams Monad | High-Risk VC Coin Could Plunge 99%

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In an explosive warning, Arthur Hayes, the former CEO of BitMEX, believes the new layer-1 blockchain, Monad, is extremely risky, potentially crashing by up to 99%. His comments have ignited a firestorm among crypto enthusiasts regarding the future of such projects.

What Hayes Claims

Hayes argues that Monad's substantial Fully Diluted Value (FDV) combined with a low circulating supply positions retail investors at significant risk. He describes it as a venture capital-driven 'VC coin', questioning its long-term viability. "Most new layer-1 networks will fail," he asserts, citing Bitcoin, Ethereum, Solana, and Zcash as the few that might survive.

"The holders are noobs," one user commented in response to Hayes's criticism, reflecting a wider skepticism within the crypto community.

Community Reactions

The sentiment among users is mixed. Some echo Hayes's warning, calling Monad a risky investment, while others dismiss his claims as self-serving. "Looks like he wants a better buy point," one user remarked, indicating potential skepticism of Hayes's motives.

Comments span a wide range:

• 😆 "Shitcoins can crash?"

• 🙄 "Only the ones you buy are pumping."

• 🎈 "This is shocking, who could’ve suspected this?"

Key Takeaways

• High FDV: Hayes highlights Monad's substantial FDV as a risk factor.

• Investor Skepticism: Social media users are divided, with some calling it a VC shitcoin.

• Historical Context: Hayes's past track record raises questions about his motivation.

As the discussion unfolds, the future of cryptocurrencies, particularly newer projects like Monad, remains a hot topic, driven by controversies and user sentiment. The questions linger: Can new players survive in an unforgiving market?

For those keeping an eye on the crypto space, this situation serves as a reminder of the market's volatility and the risks that often accompany new developments.

What Lies Ahead for Monad Coin?

There’s a strong chance that Monad could face extreme volatility in the coming months. With Hayes’ strong warning resonating across forums, investor sentiment may shift further, potentially resulting in a decline of up to 99% as he predicted. Experts estimate that if the market continues to react negatively, there may be increased selling pressure as retail investors back off. Additionally, the volatility of similar projects in this space suggests that less resilient layer-1 networks could struggle to maintain traction. As investors weigh their options, the fate of Monad will ultimately depend on the broader market environment and whether traders believe in the project's potential for growth.

A Blast from the Past

In the tech boom of the late 1990s, many startups emerged with grand ideas but questionable foundations, much like some of today's layer-1 networks. One startup, Pets.com, spent extravagant amounts on marketing without a clear path to profitability. When the tide turned, it was one of the many casualties of the bursting bubble. Similar to Pets.com, Monad's fate could hinge on its ability to sustain interest and find genuine use cases. The crypto space is rife with similar high-flyers that vanished just as quickly as they appeared, underscoring the necessity for skeptical caution among today's investors.