Arthur Hayes, the co-founder of crypto venture capital firm Maelstrom, has once again stirred the market by offloading his Worldcoin (WLD) holdings just days after his own firm publicly pitched WLD as one of the cleanest proxies for investing in artificial intelligence (AI). The move has sparked debate among traders and observers, particularly given Hayes’ previous bullish statements and the timing of the sale.
“This chart is going in the wrong direction,” Hayes posted on X (formerly Twitter) on Saturday, sharing a chart of SpaceX's pre-IPO perpetual futures contract, which had declined sharply. He added, “Dumped WLD. I’m out. See y’all at the clerb.” The post came as a surprise to many, as only three days earlier, Maelstrom researcher Lukas Ruppert had published an investor note highlighting Worldcoin as an “overlooked” bet on “AI mega IPOs,” predicting WLD would reach $5 by August.
The timing of Hayes’ exit has drawn criticism, especially since he had previously stated that he would hold WLD through the SpaceX IPO on Nasdaq, expected the following Friday. Some traders accused him of talking up the token before selling, a practice known in crypto circles as “pump and dump.” However, Hayes has a history of making swift, contrarian moves that often catch the market off guard.
Background on Arthur Hayes and Maelstrom
Arthur Hayes is a prominent figure in the cryptocurrency space, best known as the former CEO of BitMEX, one of the earliest and most influential crypto derivatives exchanges. He co-founded BitMEX in 2014 and helped pioneer perpetual swaps, which have become a standard trading instrument. After stepping down from BitMEX following legal issues with US regulators, Hayes launched Maelstrom, a family office that invests in crypto and blockchain projects. Maelstrom’s investment approach is often characterized by bold, thematic bets—such as the current focus on AI-related crypto assets.
Hayes is also a prolific writer and commentator. Through his widely read blog posts and X threads, he offers macro-economic analysis and market predictions that often move prices. His influence is significant; his 800,000 followers on X treat his statements as signals. However, his trading activity has become increasingly scrutinized for its volatility and apparent contradictions.
The Worldcoin (WLD) Phenomenon
Worldcoin is a cryptocurrency project co-founded by Sam Altman, CEO of OpenAI, the company behind ChatGPT. The project aims to create a global identity and financial network using iris scanning technology called “Orbs.” The native token, WLD, is used for transactions and governance within the ecosystem. Despite concerns over privacy and security, the project has attracted significant investment and attention due to its connection to AI and the ambitions of Altman.
In Maelstrom’s investor note from Wednesday, Ruppert argued that Worldcoin was undervalued compared to other AI-focused tokens and that the upcoming IPO of SpaceX—which has close ties to the AI industry—could trigger a broader rotation into AI-related crypto assets. The note helped push WLD to a high of $0.60 on Friday before it retreated to $0.40 on Sunday following Hayes’ dump.
Hayes’ sale is not an isolated incident. Over the past few months, he has demonstrated a pattern of buying and then quickly selling positions despite earlier boasts. In March, Hayes predicted that Hyperliquid (HYPE) would reach $150 by August and on June 1 claimed it would “outperform any other current top ten crypto in USD terms from now until year-end.” Yet three days later, he sold his entire HYPE position, citing higher energy prices due to the Iran war, “inventory restocking,” and imminent “mega AI IPOs.” On May 6, Hayes said Zcash would reach 10% of Bitcoin’s price, but on June 5 he offloaded his ZEC stash after a critical vulnerability was discovered in its privacy protocol, claiming that the “Holy Trinity” of HYPE, ZEC, and NEAR was “dead.”
However, Hayes appears to have reversed his position partially on HYPE. A wallet linked to Hayes bought back around 33,978 HYPE worth approximately $2 million on Monday after it had fallen 26% in the wake of his June 4 sale, according to blockchain analytics firm Arkham Intelligence. This suggests that Hayes may still see long-term value in some of these assets but is willing to trade in and out based on short-term market conditions.
AI Mega IPOs and Market Impact
The broader context of Hayes’ moves is the highly anticipated “AI mega IPOs”—the public listings of major AI companies like SpaceX, OpenAI (if it goes public), and others. Maelstrom has been positioning itself as a key player in the convergence of AI and crypto, arguing that tokens like WLD, HYPE, NEAR, and others will benefit from the massive capital inflows that IPOs will bring. The SpaceX IPO, in particular, is seen as a catalyst because of its leadership in AI-powered space technology and its potential to raise billions of dollars.
Hayes’ decision to dump WLD just before the SpaceX IPO has puzzled many. Some analysts speculate that he may be using the proceeds to buy other assets that will benefit more directly from the IPO, or that he anticipates a short-term dip in WLD after the event. Others believe that Hayes is simply playing the volatility, buying the rumor and selling the news—a common strategy among experienced traders.
The market reaction to Hayes’ sell-off has been negative for WLD. From a peak of $0.60, the token has fallen to $0.40, a decline of 33% in just three days. Volume spiked as traders rushed to exit, fearing further downside. The impact also rippled to other tokens Hayes had previously touted, with NEAR and ZEC seeing modest declines. However, HYPE recovered partially following Hayes’ repurchase.
Critics of Hayes argue that his actions undermine trust in his commentary. “When a prominent figure like Arthur Hayes talks up a project and then sells days later, it creates a toxic environment for retail investors who may be caught holding the bag,” said an anonymous trader on a crypto forum. Supporters counter that Hayes is a savvy trader who does not owe anyone his loyalty. “He’s not a financial advisor. He’s a speculator who shares his views. People should do their own research,” wrote a user on X.
Maelstrom has not issued an official comment on Hayes’ recent trades, despite multiple requests from journalists. The firm’s communications team did not respond to inquiries before publication. This silence has only fueled speculation about the firm’s internal investment strategy.
Worldcoin’s price action in the coming days will be closely watched. The token faces headwinds not only from Hayes’ dump but also from ongoing regulatory scrutiny. Several countries have raised concerns about Worldcoin’s data collection practices, and the project has faced bans or restrictions in places like Kenya and parts of Europe. However, supporters argue that the long-term potential of a globally verifiable digital identity remains enormous, especially as AI-driven automation increases the need for proof of personhood.
Meanwhile, the broader crypto market continues to digest the implications of macro factors such as rising interest rates, geopolitical tensions (including the Iran conflict), and the rotation of capital into traditional AI stocks. Bitcoin and Ethereum have remained relatively stable, but altcoins have experienced significant volatility. Hayes’ trading—whether intentional or not—is contributing to that volatility.
As of Sunday, Hayes’ X timeline shows no further comments on WLD or his other positions. His previous pronouncements about the “Holy Trinity” being dead have been partially contradicted by his repurchase of HYPE. It remains to be seen whether he will re-enter WLD at lower prices or move on entirely.
In the end, the saga of Arthur Hayes and Worldcoin illustrates the high-stakes, high-speed world of crypto trading where influencers can move markets with a single tweet. It also raises questions about the ethics of promoting assets while actively selling them. Regulators have increasingly focused on such behavior, but in the decentralized crypto market, enforcement remains challenging. For now, the market moves on, and traders wait for the next signal from one of the industry’s most colorful characters.
The events also highlight the interconnectedness of AI and crypto narratives. As companies like SpaceX and OpenAI reach for the public market, the crypto projects that claim to serve them will likely ride waves of hype and skepticism. Whether Arthur Hayes will profit from those waves or be burned by them is a question only time—and his next trade—will answer.
Source:Cointelegraph News