Revamped Daily Hodl Article
Arthur Hayes, BitMEX founder, identifies favorable market conditions for these specific cryptocurrency protocols' entry.
Hey there, crypto enthusiasts! Let's dive into the latest insights from the world of digital assets. Today, we're discussing Arthur Hayes, the co-founder of BitMEX, sharing his investment strategy when it comes to digital asset protocols.
In a recent chat with The Rollup, Hayes discusses the keys he looks for when investing in crypto projects. He emphasizes the importance of protocols where users are spending their hard-earned stablecoins or other crypto for the platform's services, rather than relying on token emissions for growth[1]. Here are the three main factors he considers:
- Organic user spending: Hayes values protocols where users are actively spending their own funds, demonstrating their engagement and financial commitment to the project.
- Market conditions and financial indicators: Hayes also monitors broader market conditions, considering the impact of central bank policies and financial indicators (such as the MOVE Index) on market volatility and potential Fed interventions. This helps him predict favorable conditions for crypto investments.
- Central bank interventions and liquidity: Hayes keeps a close eye on monetary policies and their influence on liquidity. He believes that certain government interventions (e.g., Treasury buybacks or quantitative easing) can indirectly boost crypto prices by increasing liquidity in traditional financial markets[2][3].
For instance, Hayes highlights Hyperliquid (HYPE) as a good example of a protocol that has experienced steady user and volume growth in its short two-year existence, showing that users are spending their crypto to engage with the platform[1].
Beyond that, Hayes also wants to see incentives for token holders within the protocols he invests in. He keeps an eye out for token buybacks, emissions, or other strategies designed to reward users, striving to know how he benefits from each investment[1].
In contrast, Hayes criticizes decentralized exchange Uniswap (UNI), stating that while it's a well-designed protocol, it fails to reward its users, deterring him from investing[1].
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Latest Industry Announcements
- Pepeto Set to Launch on Exchange: After wrapping up its presale and achieving platform milestones, Pepeto is preparing for its exchange launch[5].
- BC.GAME Expands Ecosystem with Phase 2 of Social Mining Campaign: BC.GAME has launched the second phase of its social mining campaign, increasing its engagement with users[6].
- KuCoin CEO BC Wong Joins Industry Leaders at TOKEN2049: BC Wong, CEO of KuCoin, is attending TOKEN2049 with other industry veterans, discussing steps towards a safer and smarter crypto future[7].
- aZen Secures Investments and Web3 Grants: aZen has secured a $1.2 million seed round and various web3 grants to build DePIN, an AI platform aiming for broad adoption[8].
- Bitcoin Seoul 2025 to Host Global Leaders: Asia's largest Bitcoin-focused conference, Bitcoin Seoul 2025, is welcoming industry pioneers for a packed event[9].
- FLOKI Collaborates with Rice Robotics: FLOKI has partnered with Rice Robotics to create an AI companion robot offering token rewards[10].
Spotlight
- Bitcoin Setting Up for ATH Break: Willy Woo, a renowned analyst, predicts potential breakthroughs of Bitcoin's all-time highs, as strong capital inflows signal a bullish trend[11].
- Trump's World Liberty Financial Partners with Pakistan: World Liberty Financial has collaborated with the Pakistan government to foster crypto innovation[12].
- Macro Guru Luke Gromen on BTC Demand Boosting US Treasuries: Luke Gromen, a macro guru, suggests that Bitcoin could elevate demand for US Treasuries[13].
- Swissblock Identifies Strong Accumulation Signals: According to Swissblock, bullish signals suggest significant accumulation from two key BTC investor groups[14].
Stay tuned for more Daily Hodl insights on the future of finance, covering trends in macro, Bitcoin, Ethereum, crypto, and web 3!
Disclaimer: The opinions expressed here are not financial advice. Investors should conduct their own research before participating in any high-risk investments.
[1] "Crypto veteran Arthur Hayes discusses what he looks for when investing in digital asset protocols", The Daily Hodl\[2] "Arthur Hayes says Bitcoin will rise as Fed intervenes", Decrypt\[3] "Arthur Hayes on the future of cryptocurrency and the global economy", Fortune\[4] "Arthur Hayes reveals theBitcoin volatility factor", Cointelegraph\[5] "Pepeto to launch on exchange following presale wrap-up and platform milestones", BusinessWire\[6] "BC.GAME launches phase 2 of social mining campaign, expanding ecosystem engagements with $BC token", Yahoo Finance\[7] "KuCoin CEO BC Wong to participate in TOKEN2049", PR Newswire\[8] "aZen secures $1.2 million seed round and web 3 grants to build DePIN for ubiquitous AI", PR Newswire\[9] "Bitcoin Seoul 2025 to host global industry leaders for Asia's largest Bitcoin-focused conference", Cointelegraph\[10] "FLOKI and Rice Robotics partner to launch AI companion robot with token rewards", Cointelegraph\[11] "Bitcoin breaking out: $100K BTC on the horizon?!", The Daily Hodl\[12] "Trump's World Liberty Financial signs agreement with Pakistan government to promote crypto innovation: Report", Cointelegraph\[13] "Here's how Bitcoin could boost demand for U.S. Treasuries, according to Macro Guru Luke Gromen", CNBC\[14] "Bull Run Setup Forming for Bitcoin Amid Significant Accumulation From Two BTC Investor Cohorts, Says Swissblock", PR Newswire
- Arthur Hayes, co-founder of BitMEX, emphasizes the significance of altcoin and cryptocurrency protocols where users spend their stablecoins or crypto for services, rather than relying on token emissions for growth.
- In his investment strategy, Hayes values protocols with organic user spending, indicating user engagement and financial commitment to the project.
- Hayes believes that monitoring market conditions, considering central bank policies and financial indicators, can help predict favorable conditions for crypto investments.
- Hyperliquid (HYPE) is mentioned as an example of a protocol that has shown steady user and volume growth, with users spending their crypto for platform services.
