Arthur Hayes Labels Monad a 'VC Coin,' Predicts 99% Collapse Risk

Arthur Hayes, former CEO of BitMEX, has issued a stark warning against the newly launched layer-1 blockchain Monad, branding it a "VC coin" and forecasting a potential 99% collapse in the months ahead. Speaking on Altcoin Daily, Hayes criticized Monad's token design, highlighting its high fully diluted valuation (FDV) and low token float as key vulnerabilities that place retail investors at risk.

Hayes explained that such structures often lead to short-term price pumps—MON surged 40% post-launch—followed by severe declines once insider tokens unlock. "It's going to be another bear chain," he stated, emphasizing that initial hype does not ensure long-term utility. Monad secured $225 million in funding from Paradigm last year and officially launched on Monday alongside an airdrop of its MON token.

While dismissive of Monad, Hayes remains optimistic about broader crypto growth, tying it to anticipated U.S. monetary liquidity injections. He rejected the Bitcoin halving cycle theory, instead citing global credit expansion as the primary driver. Hayes reaffirmed his Bitcoin price forecast of $200,000 to $250,000 by end-2025 and identified Bitcoin, Ethereum, Solana, and Zcash as the only protocols likely to survive market cycles.

He revealed that Zcash is now the second-largest holding in his family office, Maelstrom, underscoring his belief in privacy technologies and zero-knowledge systems as the next major narrative.