Arthur Hayes Warns Monad Could Crash 99% as ‘VC Coin’
Arthur Hayes warned that Monad, a new layer-1 blockchain with a high fully diluted value (FDV) and low circulating token supply, is at risk of collapsing up to 99%. He criticized its VC-driven model, which often leads to initial price surges followed by steep declines when insider tokens unlock, putting retail investors at risk. Hayes claimed most new layer-1 chains fail and only a few—such as Bitcoin, Ethereum, Solana, and Zcash—are likely to endure. Despite the concerns, Hayes remains optimistic about crypto overall, citing impending monetary expansion as a bullish driver. He argued that global liquidity, rather than cyclical halvings, drives crypto bull markets, with Bitcoin acting as an early indicator of financial stress. Hayes also predicted privacy technology will become a central theme, boosting interest in zero-knowledge systems and privacy coins, with institutional adoption focusing on Ethereum. Zcash is now his second-largest holding after Bitcoin.
