📢 Flash
Arthur Hayes revealed the logic behind his altcoin selection in this cycle, emphasizing that the ultimate goal of trading altcoins is to accumulate more Bitcoin.
On October 17, Arthur Hayes told The Rollup in a recent interview that the overall performance of altcoins over the past few years has disappointed him, with most new projects overvalued and carrying hidden risks. He said his fund’s current strategy is to trade altcoins in order to accumulate more Bitcoin, and that the trading itself is not the goal. When discussing his altcoin‑selection logic, Hayes outlined the following points:
1. He specifically looks for “busted charts”—tokens that have fallen 75%‑80% from a local high. He believes these assets carry lower capital risk and could deliver roughly a 5× return within a few months.
2. He completely avoids new token launches because high fully‑diluted valuations (FDV), low circulating supply, and large numbers of presale investors unlocking create excessive hidden risk.
3. He prefers projects that have survived since the 2020 DeFi Summer; their valuations already reflect real usage rather than pure narrative hype.
4. He employs a barbell strategy: one end holds hard money/scarce assets (Bitcoin, Ethereum, Zcash), while the other end holds on‑chain business protocols with genuine cash flow and buy‑back plans—benefiting from the gradual U.S. regulatory acceptance.
1. He specifically looks for “busted charts”—tokens that have fallen 75%‑80% from a local high. He believes these assets carry lower capital risk and could deliver roughly a 5× return within a few months.
2. He completely avoids new token launches because high fully‑diluted valuations (FDV), low circulating supply, and large numbers of presale investors unlocking create excessive hidden risk.
3. He prefers projects that have survived since the 2020 DeFi Summer; their valuations already reflect real usage rather than pure narrative hype.
4. He employs a barbell strategy: one end holds hard money/scarce assets (Bitcoin, Ethereum, Zcash), while the other end holds on‑chain business protocols with genuine cash flow and buy‑back plans—benefiting from the gradual U.S. regulatory acceptance.
