In Brief
- Hayes warns Monad’s structure risks a 99% crash post-insider unlocks.
- Monad’s FDV, low supply could lead to unpredictable price swings.
- MON price up 27.09% in 7 days, with growing market interest.
Arthur Hayes, co-founder of BitMEX, criticized Monad (MON) for its high fully diluted valuation (FDV) and low circulating supply. In an interview with Altcoin Daily, Hayes warned that these factors pose a risk of a 99% crash, especially after insider token unlocks.
He explained that Monad’s structure benefits early investors, leaving retail buyers vulnerable when the market faces price corrections. Hayes also doubted Monad’s ability to compete with major blockchains like Ethereum (ETH) and Solana (SOL), citing a lack of competitive edge.
Hayes Remains Bearish on Monad Amid Market Dynamics
Despite an initial purchase of Monad tokens, Hayes reversed his position after observing the token’s price decline. He noted that the token’s market dynamics, driven by a high FDV and limited circulating supply, could lead to unpredictable price movements.
Although Monad has received significant investment, Hayes remains skeptical about its long-term success due to weak demand. He emphasized that only Bitcoin (BTC), Ethereum, Solana, and Zcash (ZEC) are likely to endure in the crypto space.
Additionally, Hayes forecasted that the market would experience large-scale liquidity injections, signaling the start of a new cycle.
Over the past 7 days, MON has surged by 27.09%, reaching $0.03660 on November 29. It saw a 3.23% increase in the last 24 hours, although it dropped by 1.21% in the past hour.
The token’s 24-hour trading volume increased by 7.26%, reaching around $409.2 million, indicating growing market interest. The price chart reveals a steady uptrend, with a market cap of $396.4 million, showing strong momentum for MON.
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Source: https://coincu.com/news/arthur-hayes-criticizes-monad-mon/
