Key facts
- Arthur Hayes sold his entire positions in HYPE token and NEAR Protocol on June 4.
- Hayes cited rising energy prices, three major AI IPOs, and potential political risks as reasons for his sales.
- Hayes also sold his entire Zcash holdings due to a critical vulnerability in the Orchard privacy pool.
- The Zcash vulnerability could have allowed for undetectable counterfeit ZEC creation.
- Zcash developers patched the vulnerability via an emergency hard fork.
- The LAB token reached an all-time high of $16.23 on June 1.
- The LAB token has seen year-to-date gains exceeding 12,000%.
- NEAR Protocol's token surged nearly 20% to $2.75.
- A June network upgrade is expected to enhance NEAR Protocol's scalability.
- Ethereum's price fell below $1,600, reducing a $10,000 investment to $7,731 within a single day.
- Worldcoin (WLD) price dropped 20% after co-founder Arthur Hayes sold his holdings.
- Hunter Biden praised cryptocurrency and called fiat currency a 'sham'.
Arthur Hayes, co-founder of BitMEX, has divested his entire positions in several cryptocurrency assets, citing a confluence of macro and geopolitical factors. He announced the sale of his HYPE token and NEAR Protocol holdings on June 4, attributing the decision to rising energy prices, the anticipation of three major AI IPOs, and potential shifts in political stances regarding artificial intelligence. Hayes had previously set a $150 price target for HYPE. In a separate move, Hayes also sold his entire Zcash (ZEC) holdings following disclosures of a critical vulnerability in the Orchard privacy pool. This vulnerability could have enabled the undetectable creation of counterfeit ZEC. Although Zcash developers addressed the issue with an emergency hard fork and no user funds were compromised, the token's price experienced a decline of over 45%. Hayes had also reportedly sold his Worldcoin (WLD) holdings, contributing to a 20% price drop for the token, a day after initially stating he would retain them.
Despite these significant sales by Hayes, other tokens have shown divergent performance. The LAB token, associated with an AI trading terminal project, achieved a new all-time high of $16.23 on June 1. This token has demonstrated extraordinary year-to-date gains exceeding 12,000%, with a more than 100% increase leading up to its recent peak, even amidst ongoing concerns about supply and allegations of insider dealing. NEAR Protocol's token experienced a notable surge of nearly 20%, reaching $2.75 and outperforming the broader crypto market, which saw a 3.7% decline in total market capitalization. NEAR has recovered 225% from a support zone between $0.90 and $1.10, with a network upgrade scheduled for June expected to enhance its scalability. Separately, Hyperliquid, a decentralized crypto platform, is exhibiting price action independent of Bitcoin. TD Securities has noted that its perpetual futures are surpassing traditional exchanges in areas such as oil and pre-IPO stocks.
In broader market commentary, Ethereum's price fell below $1,600, resulting in a substantial loss for investors; a $10,000 investment in ETH reportedly decreased to $7,731 within a single day, highlighting the market's volatility. Hunter Biden has publicly endorsed cryptocurrency and blockchain technology, describing fiat currency as a 'sham' and referencing Andreas Antonopoulos' book as influential. He believes politicians underestimate crypto's value and mentioned using Hyperliquid as a tool against anti-crypto sentiment. Meanwhile, Bloomberg ETF analyst Eric Balchunas has characterized Bitcoin ETFs as "old news," suggesting that the cryptocurrency sector requires a new narrative to maintain momentum, comparing the current hype to the character Hansel from Zoolander.
A June network upgrade is expected to enhance NEAR Protocol's scalability. The Zcash vulnerability was patched via an emergency hard fork. The LAB token reached its all-time high on June 1. Arthur Hayes announced his sales on June 4. A $10,000 investment in Ethereum reportedly fell to $7,731 within a single day.