Arthur Hayes: Monad’s Potential Drop to 99% Raises Red Flags

Crypto veteran Arthur Hayes has warned that the layer-1 blockchain project Monad could experience a dramatic 99% decline in value, citing its high fully diluted valuation (FDV) and vulnerabilities within its tokenomics. He attributes this potential collapse to the project’s reliance on VC funding and its susceptibility to insider token unlocks, which often lead to volatile price fluctuations. This warning coincides with Hayes’ belief that most new layer-1 blockchains will fail to gain lasting relevance, with only a handful of projects like Bitcoin, Ethereum, Solana, and Zcash likely to endure long-term.