A Stark Warning on Token Economics

Despite a 30% price increase over the last week, the newly launched Monad (MON) token is facing a stark warning from crypto investor Arthur Hayes. The former BitMEX CEO cautioned that the Layer-1 blockchain project could see its value plummet by as much as 99%, arguing its structure poses a significant threat to retail investors.

In a recent interview, Hayes described Monad as “another high FDV, low-float VC coin.” He explained that projects with a large gap between their Fully Diluted Valuation (FDV) and their circulating supply often experience brief price surges driven by hype. However, he warned that this momentum could reverse dramatically once insiders begin to unlock and sell their token allocations, leading to a steep decline. He referred to it as a potential “bear chain,” suggesting its early performance doesn’t guarantee long-term adoption.

Monad launched its main network on November 24, accompanied by an airdrop of its MON token. The project secured $225 million in a funding round led by Paradigm last year. Hayes’s skepticism is not isolated. Analyst Altcoin Sherpa echoed a similar sentiment, advising MON holders to have a clear exit strategy and suggesting its price could fall much further.

Broader Crypto Market Remains Bullish for Hayes

While critical of Monad, Hayes presented a broadly positive outlook for the wider cryptocurrency market. He believes the next phase of the bull cycle will be fueled by renewed monetary expansion from the U.S. government, which he anticipates will inject more liquidity into the economy in response to slowing growth.

“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 stated. Hayes also challenged the common belief that Bitcoin’s market cycles are dictated solely by its four-year halving schedule. Instead, he argued that past bull markets were primarily triggered by synchronized global credit expansion, particularly from the United States and China.

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