Key Notes
- Arthur Hayes added that once insiders start unlocking tokens, Monad price can see a sharp fall.
- Market sentiment around MON remains weak despite its recent rally, with analysts advising holders for an exit plan.
- Hayes maintains a bullish outlook on the broader crypto market, saying upcoming global liquidity expansion will lead to a bull rally.
The 30% Monad price rally over the past week grabbed investors’ attention. However, veteran crypto investor Arthur Hayes has warned that the newly launched Layer-1 blockchain could end up as a failed experiment once the hype subsides. Following the rejection at $0.048, the altcoin is currently finding support at $0.035.
Arthur Hayes Warns Monad Could Crash 99%
Crypto veteran Arthur Hayes has sounded the alarm on Monad, cautioning that the newly launched layer-1 blockchain could lose up to 99% of its value. Speaking in an interview with Altcoin Daily, the former BitMEX CEO argued that the project resembles “another high FDV, low-float VC coin.” Thus, he warned that its token structure poses significant risks to retail investors.
He added that such networks that have a large gap between fully diluted valuation (FDV) and circulating supply typically see short-lived price spikes. Once insiders start to unlock the tokens, it could lead to a steep decline, he added. “It’s going to be another bear chain,” he said, adding that early pumps do not guarantee real adoption or long-term relevance.
Arthur Hayes added that only a few layer-1 chains are likely to survive future market cycles. He listed Bitcoin, Ethereum, Solana, and Zcash as the protocols he expects to endure.
Monad, which raised $225 million last year in a Paradigm-led funding round, officially launched its mainnet on November 24. At the same time, the platform also released the MON token through an accompanying airdrop.
Apart from Hayes, the overall market sentiment around the MON token doesn’t look very optimistic. Popular crypto analyst Altcoin Sherpa also shared a similar view. He suggested that MON holders should have an exit plan in place. By comparing MON to other projects like XPL and WLFI, the analyst added that the price can go much lower from here. A negative rising sentiment could halt the recent Monad price rally.
Hayes Remains Bullish on Crypto Market
Apart from this, Arthur Hayes outlined a broadly bullish outlook for the crypto market, saying the next phase of the cycle will be driven by renewed monetary expansion. According to Hayes, the US government is preparing for another round of liquidity injections amid slowing economic growth and political pressures.
“I think that we are at the end of the beginning of this cycle, and the massive amounts of crazy bull market money printing is ahead of us,” he said.
Hayes further pushed back against the idea that Bitcoin’s market cycles are dictated by its four-year halving schedule. He argued that previous bull markets were triggered not by halving events but by synchronized global credit expansion, especially from the US and China.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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Source: https://www.coinspeaker.com/monad-could-crash-99-says-arthur-hayes-despite-recent-rally/
