Arthur Hayes argues venture capitalists dump tokens to lock in profits, depriving holders of protocol-level cash flows.
BitMEX co-founder Arthur Hayes stated most crypto tokens fall because projects retain protocol revenue instead of distributing it to holders. He cited early venture capitalists selling tokens to maximize returns, pressuring prices downward.
Hayes contrasted this with Hyperliquid’s buyback mechanism, which returns value to token holders. He noted investors now prioritize tangible cash flows over white papers or early backer lineups.
The comments reflect growing scrutiny of tokenomics and investor expectations in the crypto market.