Arthur Hayes predicts that the Monad MON token will trend toward zero, citing weak tokenomics despite its innovative technology and recent $269 million ICO success on Coinbase. This bearish outlook follows a 24% price decline, with Hayes warning of a potential 99% drop due to high FDV and controlled supply.
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Arthur Hayes, BitMEX co-founder, forecasts most Layer 1 tokens like MON heading to zero, sparing only Bitcoin, Ethereum, and Solana.
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Monad’s ICO raised $269 million rapidly, but sustainability concerns arise from locked tokens and inflation via staking rewards.
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Recent whale liquidations totaled $3.23 million in 24 hours, signaling strong bearish sentiment as MON falls below its $0.0288 launch price.
Discover Arthur Hayes’ bold Monad MON prediction and its impact on crypto markets. Explore tokenomics issues, whale losses, and Layer 1 sustainability. Stay informed on the latest crypto news for smarter investing decisions today.
What is Arthur Hayes’ Prediction on the Monad MON Token?
Arthur Hayes, co-founder of BitMEX and Chief Investment Officer at Maelstrom, has issued a stark warning about the Monad MON token, predicting it will ultimately trend toward zero alongside most other Layer 1 tokens. In a recent interview with Altcoin Daily, Hayes emphasized that only Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are likely to endure long-term, dismissing Monad’s recent ICO hype as insufficient for sustained success. He described MON as a high fully diluted valuation (FDV), low-float venture capital coin prone to sharp declines once token locks release.
How Do Weak Tokenomics Affect Monad’s Future?
Tokenomics play a critical role in any cryptocurrency’s viability, and Hayes argues that Monad’s structure undermines its potential despite strong underlying technology. The project’s ICO on Coinbase raised $269 million in record time, positioning it as a Layer 1 sensation aimed at high-performance blockchain solutions. However, Hayes points to issues like a ~1% monthly inflation from staking rewards and tightly controlled token supply by insiders, which could lead to dumping pressure as unlocks occur.
Monad co-founder Keone Hon countered these claims by highlighting the network’s innovative tech, including parallel execution and Ethereum Virtual Machine compatibility, which enable thousands of transactions per second. Yet Hayes remains unmoved, stating the technology is irrelevant if tokenomics fail to support price stability. He challenged the team to unlock all tokens for true price discovery, allowing market forces to reveal MON’s real value under bullish conditions.
Data from on-chain analytics shows that real usage will be key; without it, inflation and unlocks could erode value significantly. For instance, Hayes noted that many projects mimic early Ethereum but lack the ecosystem depth to thrive. Community members have observed hypocrisy, as Maelstrom’s portfolio includes similar locked
