Arthur Hayes Sounds Alarm: Monad’s Tokenomics Could Send MON to Zero
BitMEX founder Arthur Hayes drops bombshell warning about Monad's economic model
The Tokenomics Timebomb
Hayes argues Monad's distribution mechanism creates unsustainable sell pressure—potentially driving MON's value straight to zero. His analysis suggests the project's economic design favors early insiders over long-term sustainability.
Market Impact
If Hayes' prediction proves accurate, MON could join the growing graveyard of failed token launches. The warning comes as investors grow increasingly skeptical of complex tokenomics that promise the moon but deliver cratered prices.
Industry Wake-up Call
Another day, another 'revolutionary' token facing existential questions—because what's crypto without a little dramatic flair and questionable economic models?
Source: CMC
Hayes’ Sharp Critique of Monad Token
Arthur Hayes, co-founder of BitMEX and a prominent macro commentator, has delivered one of the strongest criticisms yet toward MON, a high-performance Layer-1 positioned as an EVM-compatible chain. Speaking on the Altcoin Daily podcast, Hayes said the token's “weak technical foundation and broken tokenomics” could push the token “straight to zero” if problems remain unaddressed.
He also noted that his stance shifted from early Optimism to bearishness after re-evaluating the project’s design, market structure, and token performance.
Source: Wu Blockchain X
“Not on Solana’s Level” — Tech Claims Challenged
Hayes argues that MON does not currently meet the performance levels suggested during its promotional push. While it markets itself as a high-throughput chain with full EVM compatibility, Hayes claims its real-world execution and ecosystem traction remain limited.
He asserts MON is “not remotely close to Solana” in throughput, reliability, or developer activity. According to Hayes, existing alternatives already dominate key categories:
Solana — high-speed execution and growing user base
Ethereum L2s — strong security and deep liquidity
Aptos & Sui — advanced parallel execution models
With the modular and rollup ecosystems expanding rapidly, Hayes believes new L1s must clearly differentiate — and says the project “hasn’t done that yet.”
High FDV, Low Float: Hayes’ Biggest Concern
Hayes emphasizes that Monad tokenomics are a greater risk than its technology.
He criticizes the project’s high fully diluted valuation (FDV) combined with a low circulating supply, calling it a “VC-favored structure” that creates artificial scarcity. Such models often lead to heavy sell pressure as tokens unlock over months or years.
According to BitMEX Founder, the token's early trading patterns already reflect weakening confidence, with sharp post-launch declines and limited organic demand.
He warns this model frequently ends with “retail holding exposure while insiders distribute,” though he notes outcomes depend on real network traction.
Source: YouTube
From Bullish to Bearish — Why Arthur Flipped
Hayes admitted he initially bought the token NEAR its early peak, believing the project could compete in the next L1 cycle. However, he changed his mind after seeing price movement, liquidity patterns, and ecological stagnation. He now forecasts that the token might not do well unless its technology and developer environment gain significant strength.
The Implication of this to the L1 Market.
The criticism points to a more general change in investor attitude. Low-utility L1 chains with high-FDV have gained increased scrutiny than before, especially with the emergence of ethereum rollups and high-performance chains such as Solana.
The future of MON is relying on:
Real developer adoption
Sustainable token unlock management
Demonstrating its performance assertions with quantifiable information.
Conclusion
The remarks made by BitMEX Founder highlighted the technology and token model and cast serious doubts on its sustainability in the long run. To restore confidence in the market, the project should demonstrate actual utility. Check the Monad price prediction for upcoming years.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
