Ethereum (ETH)’s Biggest Beef Might Be Between BitMEX’s Arthur Hayes
Why The Beef Between BitMEX’s Arthur Hayes and Ethereum
In recent days, BitMEX’s founder Arthur Hayes has been all over the news as a man who has an unending beef with Ethereum. In fact, he is on record to have said that the Ethereum is a ‘two-digit shitcoin’.
According to critics, some of whom are playing the middle ground, Hayes is using his platform to entice users to shut down the trade of the Ethereum. Many have referred to him as the chief enemy of the Ether in 2018, even if the beef seems to have started much earlier.
Source of Beef Unearthed
According to a blog post on BitMEX’s website, Hayes shows when his anger started. The post says that Mr. Arthur was on holiday in Thailand, where he was accompanied by “one of the best shitcoin traders”.
Later, when the cryptocurrency investor was riding back to the hotel, he says that he noticed the rider of the auto rickshaw wearing a hat with a ‘Pepe Frog’. According to Mr. Hayes’ partner, this was a deliberate advert that signified the surging and the coming back into the market of the Pepe Coin (MEME). The investment in the unusual crypto asset then turned out to be a great bet in 2017, when the price of Ethereum reached record highs.
According to the BitMEX founder, the ICO boom in 2017 was fuelled by short exchange, where all kinds of projects – useful or not – got huge amounts of funding, which led to the appearance of poorly-prepared VC hedge funds. In his words, Hayes said that:
“The real profit in 2017 was made by Ether holders, shitcoin projects, and promoters. The seed capital for many of the venerated crypto hedge funds emanated from outsized returns on holdings of Ether and token projects. Jealous traditional VCs transformed portions of their funds into poorly designed hedge funds so that they too could punt shitcoins. Everyone piled into the same deals, all thinking they ‘got it.’ That worked well all of 2017.”
According to Hayes, VC funds have not yet achieved the amazing profits they assumed back in the days (2016-2017), and they are not willing to handle any further market losses. From the way he sees it, a good number of ICO projects have not sold a large amount of their ether holdings, something that raises the danger of an impending exit rush, which, as he believes, will exert immense pressure on the value of the digital asset, pushing the priced down. Concluding his line of argument he noted that:
“[VCs] will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go ‘fuck it,’ and dump everything they can. It is this moment, that Ether goes from a 3-digit to a 2-digit shitcoin.”
Ether Is Destined For a Substantial Fall
Arthur Hayes doubled down on his portrayal of Ethereum as a “shitcoin” in a subsequent post using the official account of BitMEX, stating that the platform now offers its users with leverage for betting on the price of Ethereum using the company’s popular crypto derivatives.
On his part, the founder of BitMEX believes that Ethereum is not just destined to fall, but the fall will be systematic, substantial and far-reaching. Once investors dump ERC-20 tokens, the existence of Ethereum as a top level coin will be completely finished.
Whether the prediction of Hayes comes to pass or not, from his remarks, it is evident that the beef between him and the Ethereum is not ending soon.