Hayes only picks old coins that are down 80%
Arthur Hayes laid out his strategy in an interview with The Rollup: the fund uses altcoins as a tool, with the ultimate goal of accumulating more BTC. It only looks at surviving projects that have fallen 75%–80% from their local highs, and completely avoids new token launches with high FDVs, low circulating supplies, and crowded presale allocations.
This approach goes straight to the heart of token distribution. New coins with high FDVs and low circulating supplies can’t sustain the follow-on unlocks with market-making depth. Every rebound provides liquidity to presale wallets, leaving prices with nowhere to go but down. For established DeFi tokens that have fallen 80%, selling pressure is nearly exhausted. They tend to hold up better during short-term pullbacks, and as long as key daily support holds, these assets can rebound much more strongly than newly launched ones. The next area to watch overhead is the previous high-volume trading zone.
For those holding established DeFi tokens down 80%, what’s your cost basis? Would you dare to add on this pullback?
$BTC $ETH $CRV
Arthur Hayes laid out his strategy in an interview with The Rollup: the fund uses altcoins as a tool, with the ultimate goal of accumulating more BTC. It only looks at surviving projects that have fallen 75%–80% from their local highs, and completely avoids new token launches with high FDVs, low circulating supplies, and crowded presale allocations.
This approach goes straight to the heart of token distribution. New coins with high FDVs and low circulating supplies can’t sustain the follow-on unlocks with market-making depth. Every rebound provides liquidity to presale wallets, leaving prices with nowhere to go but down. For established DeFi tokens that have fallen 80%, selling pressure is nearly exhausted. They tend to hold up better during short-term pullbacks, and as long as key daily support holds, these assets can rebound much more strongly than newly launched ones. The next area to watch overhead is the previous high-volume trading zone.
For those holding established DeFi tokens down 80%, what’s your cost basis? Would you dare to add on this pullback?
$BTC $ETH $CRV