Arthur Hayes Warns Monad Token Could Face a 99% Collapse

Highlights:

• Crypto veteran Arthur Hayes warned Monad could drop 99%, and called it highly risky.
• Monad’s MON token surged early, then fell, showing typical high FDV volatility.
• Hayes expects Bitcoin, Ether, Solana, and Zcash to survive the next cycle.

Crypto veteran Arthur Hayes has warned that Monad, a newly launched layer-1 blockchain, could decline by up to 99%. Speaking on Altcoin Daily, the former BitMEX CEO described it as “another high Fully Diluted Value, low-float VC coin.” He emphasized that its token structure poses significant risks for retail investors.

Monad Token Faces Volatility After $225 Million Venture Funding

Monad raised $225 million last year from venture capital firm Paradigm. It launched on Monday with a MON token airdrop. Hayes explained that coins with a big gap between total value and circulating supply often rise quickly at first. Prices then drop sharply when insider tokens unlock. “It will likely be another bear chain,” Hayes said. He added that an early price pump does not mean long-term use. Most new layer-1 blockchains fail, and only a few stay important.

On Altcoin Daily, BitMEX co-founder Arthur Hayes criticized Monad, calling the supposed "next ETH killer" a high fully diluted valuation, low float setup designed for founders and VCs to dump on retail. Hayes said Monad has no chance against Ethereum—"not even Solana." He added…

— Wu Blockchain (@WuBlockchain) November 29, 2025

Hayes expects Bitcoin (BTC), Ether (ETH), Solana (SOL), and Zcash (ZEC) to likely survive the next crypto cycle. He suggested that the usual four-year Bitcoin cycle may not explain past booms. According to him, global credit expansion, especially in the US and China, played a bigger role.

He also noted that Bitcoin often moves first when liquidity becomes tight. He described it as the “last free-market smoke alarm” for the global financial system. Hayes believes government policies in the United States may be preparing for more monetary expansion ahead of elections and slower economic growth. He added that the current cycle may be just starting. He expects large amounts of bull-market money printing could happen. Despite risks in projects like Monad, he appeared generally bullish on crypto.

Hayes believes privacy tech will lead the next crypto trend. Zero-knowledge systems and privacy coins may get more attention. He also expects institutions to use Ethereum, especially with stablecoins and tokenized finance.

Hayes’s criticism came shortly after he briefly held a position in MON. On November 25, he announced that he had acquired the token, even while calling it another high-FDV, low-float layer-1 asset. After seven hours, he exited the position and shared a chart showing the token’s decline, noting that he had taken a loss. He wrote, “I’m out. Send this dogshit to ZERO,” which further drew attention to the token’s rapid price movement.

I'm out. Send this dogshit to ZERO!$MON 😭😭😭😭😭😭😭😭 pic.twitter.com/qUYgmhvPsT

— Arthur Hayes (@CryptoHayes) November 27, 2025

Monad’s MON Token Shows Strong Volatility

Since its launch, Monad’s MON token has seen big price swings. It started at $0.025 in the public sale and quickly rose to about $0.0487, almost double the initial price. It is now trading around $0.037, giving it a market value of roughly $409.12 million, about 24% below its all-time high. This volatility supports Hayes’ view that the token carries high risk. He noted that early demand, fueled by venture capital, could lead to losses for regular investors if MON follows the same pattern as other high Fully Diluted Value projects.