In 2014, Arthur Hayes teamed up with two other entrepreneurs to found BitMEX, a platform that would become a reference in trading Bitcoin derivatives and other cryptocurrencies. Nine years later, the billionaire invests heavily in a competitor’s cryptocurrency.
According to onchain data, Hayes is the fifth largest whale of this cryptocurrency. Excluding brokers and other platforms, the billionaire is the largest individual investor, with a stake of BRL 78 million.
Through his social media, Hayes celebrated the cryptocurrency’s 85% rise in this year 2023. However, he seems to have no interest in closing his position anytime soon.
Arthur Hayes bets on DeFi cryptocurrency
In a conversation with The Defiant portal published on Tuesday (14), Arthur Hayes explained why he is the biggest whale of the GMX token (GMX). “I like this sign”summarized the billionaire, famous for his long lyrics.
The billionaire explains that GMX is the second largest derivatives platform by trading volume in the DeFi sector and also points out that he likes the economics of this cryptocurrency. “Offers an attractive return”completed.
More importantly, given the strong resemblance to his first trade, BitMEX, it’s clear that Hayes knows where he stands. In other words, it’s comfortable being one of the biggest whales in GMX.
“Clients always pay for leverage”Arthur Hayes told The Defiant. “That’s why when I decided to create [a BitMEX] in 2014 I focused on derivatives. And that’s also why when I started thinking about how to get significant exposure to DeFi in 2022, I also went down the derivatives route.”
“I have a major interest in BitMEX and also want exposure to what I believe is a leading DeFi derivatives trading platform.”
With a market cap of $673 million, GMX is already among the top 100 cryptocurrencies in the industry today, at number 72.
Listed by major exchanges such as Binance, OKX, Poloniex, and KuCoin in recent months, this has also contributed to GMX’s natural growth. Compared to the beginning of the year, Hayes’ new favorite cryptocurrency is up 85%, leading the billionaire to celebrate every increase on his social networks.
“Oh yeah!!! Just up…right? $GMX”
Oh yeah!!! Only up … right ??? 🧐🧐🧐 $GMX pic.twitter.com/eIkum7STno
— Arthur Hayes (@CryptoHayes) January 29, 2023
Finally, it’s worth noting that Hayes bought his GMXs between March and September last year. Even with an average price of $28.5 per token, meaning he’s already doubled his investment, the billionaire doesn’t seem ready to sell it yet.
shitcoin season
Besides GMX, where Arthur Hayes seems to have enough experience to assess the project’s potential, the billionaire also believes that a shitcoin season is near.
In a text published last week, Hayes pointed out that he would buy Bitcoin because of his interpretation of the Fed’s next moves. However, he stressed that other cryptocurrencies could take off.
“If Bitcoin and Ether continue to rise, there is sure to be a shitcoin vertical going wild in the coming months.”
“The key to shitcoining is understanding that they rise and fall in waves”summarizes Hayes. “First, the rally in reserve assets (Bitcoin and Ether). So the rally of this [ativos] strong ends and then prices drop slightly. At the same time, shitcoins are staging an aggressive rally. Then shitcoins rediscover gravity and interest returns to Bitcoin and Ether.”
In other words, shitcoins take advantage of Bitcoin’s pauses to shoot, but end up with a big drop in the range, pushing BTC back up. In other words, they are high-risk investments, many of which are baseless, but which experienced traders like Hayes, who has worked at Deutsche Bank and Citigroup, have managed to profit from.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
