Arthur Hayes, the co-founder of BitMEX and a prominent voice in the cryptocurrency world, has once again captured headlines with his dramatic pivot on Monad (MON), a low-float altcoin. On November 25, Hayes publicly announced his investment in MON, triggering a rapid 30% price surge, only to reverse his stance within hours, calling the token ‘dogshit’ and urging followers to abandon ship. This abrupt flip has reignited discussions on the risks associated with trading low-circulation, high-FDV altcoins and the influence that prominent figures exert in this volatile market.
The MON Hype: How It Began
MON, characterized by its ultra-low circulating supply of just 10.83 million tokens and its eye-watering $4.09 billion Fully Diluted Value (FDV), was already a topic of intrigue in the altcoin community. When Hayes jokingly referred to MON as another ‘useless L1,’ he added, ‘Obvi I aped. It’s a bull market.’ His endorsement immediately drove MON’s price up by over 30%, approaching $0.048 per token, according to data.
The Sudden Turnaround
Only seven hours later, Hayes shocked the crypto community by selling off his position and posting a blunt critique: ‘I’m out. Send this dogshit to ZERO!’ His tweet was accompanied by a chart showing MON’s price drop back to $0.042, a move that left many traders reeling. Some accused Hayes of leveraging MON’s low liquidity for a quick profit, while others saw his actions as a spotlight on the inherent dangers of investing in low-float tokens.
What Makes MON So Volatile?
The extreme price fluctuations of MON can be attributed to its unique tokenomics. With a limited circulating supply and substantial FDV, small capital inflows or the influence of major investors like Hayes can trigger massive price swings. According to CoinMarketCap, MON saw a 24-hour trading volume of $651 million as of November 27, reflecting intense market activity despite its instability.
Key Takeaways for Investors
Hayes’ dramatic maneuver with MON underscores the volatility and risks inherent in cryptocurrency investments, particularly low-float tokens. The token’s supply structure and high FDV create an environment where sharp price swings are more of a rule than an exception. As more tokens unlock and early investors seek to exit, MON could face significant selling pressure, further exacerbating its instability.
A Shoutout for Active Crypto Traders
If you’re navigating the crypto markets, staying informed is crucial. Consider using professional tools like the Binance Trading Platform to monitor market conditions, analyze charts, and make more informed decisions. Remember, the keys to success are research, risk management, and staying up-to-date with market trends.
As Hayes’ experience with MON shows, even seasoned traders are not immune to the unpredictable dynamics of the crypto world.
