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Arthur Hayes Warns Monad Could Plunge 99% as CEO Defends Network

The dispute centers on high fully diluted valuation with a thin circulating float that many see as unlock‑driven risk.

Overview

  • Hayes told Altcoin Daily he expects most new Layer‑1 tokens to trend toward zero and singled out Monad’s MON as a high FDV, low‑float structure vulnerable to severe drawdowns.
  • AMBCrypto reports MON has fallen below its $0.0288 launch price, with on‑exchange liquidations mounting and two large traders losing a reported $3.23 million in 24 hours.
  • Monad co‑founder Keone Hon countered that the chain uses a 170‑validator model with MonadBFT, async execution, and audited, from‑scratch code aimed at speed without a centralized sequencer.
  • Hon said the MON sale on Coinbase used a bottom‑fill allocation to curb whale concentration, while Hayes maintained that token design, not technology, is the core problem.
  • Coverage notes Monad’s late‑November mainnet launch with rapid listings and heavy early trading, as Hayes reiterated his longer‑term preference for Bitcoin, Ethereum, Solana and Zcash despite a broadly bullish liquidity outlook for crypto.