Arthur Hayes Takes Aim at Cryptocurrency Projects Lacking Clients or Revenue

He declared the current market environment a “fundamental season” where actual financial performance matters.

BitMEX co-founder Arthur Hayes took aim at cryptocurrency projects boasting no clients, no revenue, and zero cash flow in a recent tweet. He declared the current market environment to be "fundamental szn."

"It’s fundamental szn bitches. Fuck your no client, no revenue shitcoins. Give me that cash money in the form of buy back and burn. $ETHF = the Amex of #crypto," Hayes stated.

The message highlights Hayes's focus on cryptocurrency projects that generate real cash flow over those trading primarily on speculation. His call for token buybacks and burns, where projects purchase their own tokens from the market and permanently remove them from circulation, emphasizes his preference for deflationary tokenomics backed by actual revenue.

Treasury Department Over the Fed

Hayes' outlook also sees him advising investors to shift their attention from Federal Reserve actions to Treasury Department operations.

"The real show is at the Treasury Department. Ignore the Fed. It doesn't matter. Powell didn't matter in 2022 under a Democratic regime, and he doesn't matter now under a Republican one. People are focused on interest rates, but that's not the game. The game is liquidity, and liquidity is determined by the Treasury Department," explained Hayes, tying his investment thesis more closely to increasing the money supply than to rate fluctuations.

This liquidation-driven strategy has influenced Hayes's own investment plan, leading him to allocate 60%-65% of his portfolio to Bitcoin, 20% to Ethereum, and the remaining to what he terms "quality shitcoins"—a colloquialism used to differentiate between valueless tokens and those possessing real utility and revenue streams.

This view contrasts with his very bullish outlook on Bitcoin, which he prophesied would hit $1 million by 2028. Ascribing this prediction to America's continued spending habits and capital flowing towards hard assets due to a liquid dollar, Hayes' predictions are tied to his observations of macroeconomic trends and capital flows.

This emphasis on fundamentals marks a phase of transformation for the cryptocurrency market as investors increasingly differentiate between projects according to revenue generation, user adoption, and tokenomics. The focus on fundamentals implies a ripening market that may see financial performance increasingly replace pure speculation as a driver of value.