Monad, a once-dominant public blockchain, has seen its price steadily decline since its launch. Arthur Hayes stated on a program that Monad is yet another VC coin with high FDV and low circulating supply. Public blockchains that rely solely on hype and lack practical applications will ultimately suffer the same fate as Berachain, experiencing a continuous decline.
Arthur Hayes quoted Do Kwon to satirize Monad's continuous decline.
Arthur Hayes tagged Monad CEO Keone Hon, who commented while looking at Monad's continuously declining chart: "Keone seems to be saying, 'Don't panic, guys...' ('Steady lad...' is a famous quote from Do Kwon during the 2022 Terra crash, used to feign calm and reassure the community, but later used as a sarcastic remark)."
He even publicly stated on the show that Monad is yet another VC coin with high FDV and low circulating supply, just like Berachain, and may eventually collapse by 99%. This is often the fate of protocols driven by venture capital rather than by applications.
Arthur Hayes questions Monad's token economy
Monad CEO Keone Hon responded with a lengthy post: "Dear Arthur Hayes, I deeply admire everything you have built for this industry. Perpetual contracts are an amazing innovation that I believe will continue to grow rapidly, and your impact on the entire industry is profound. I have seen you comment on Monad several times over the past few days. While I am certain that some of your comments may have been taken out of context, I think you might be interested in understanding what makes Monad different and why it is not just another L1."
He then detailed Monad's technological advancements, including its consensus mechanism and block generation speed. He said: "The ecosystem is still in its early stages, but a group of young, eager developers are already building new applications. The Monad Foundation and the Category Labs team are fully committed to continuously expanding the ecosystem. Research in areas such as asynchronous execution, gas pricing, and privacy will continue to drive the entire industry forward. This is only the sixth day mainnet, and our excellent team will continue to break through and innovate."
He mentioned that MON is the first token sold on Coinbase's token sale platform, with the aim of allowing as many people as possible to acquire tokens before its public listing. The token sale uses a bottom-up order system to prevent whale from snapping up all the tokens at once, as is common in other projects. He even directly told Arthur Hayes that if he wanted some MON to try out the network, he would be happy to transfer some to him. Thank you again for your contribution to this industry; see you on the blockchain.
Arthur Hayes sarcastically remarked: Why doesn't Monad unlock all tokens?
Arthur Hayes replied: I know nothing about your technology. I'm sure it's good; everyone says you're brilliant. But your token economics model is almost certainly going to plummet. How is this chain going to absorb 90% of the tokens without crashing? How much usage is needed to generate natural demand for early investors and team members to sell after the tokens unlock? There's nothing wrong with selling; your early backers and team members took the risk and deserve a substantial reward.
Please tell the community how you plan to sustain a monthly inflation rate of approximately 1% solely through staking rewards. Explain this to me properly; I don't care about your technical skills, I'm just a trader.
Keone pointed out that Arthur Hayes' information was incorrect, stating that Monad maintains an annual inflation rate of 2%, lower than other L1 cryptocurrencies. Arthur Hayes retorted that if they were truly different from other "Ethereum killers," why didn't they unlock all their tokens at once and let market supply and demand prove them right?
This article, written by Arthur Hayes, uses Do Kwon's famous quote to mock Monad's impending 99% collapse, sarcastically asking: "If it's so strong, why doesn't it unlock all its tokens?" It first appeared on ABMedia, a ABMedia .
