Arthur Hayes says Maelstrom is “patient” and is currently only looking to invest in projects that can prove their worth.
Meanwhile, BitMex CEO Arthur Hayes plans to outperform the returns offered by Bitcoin (BTC) and Ether (ETH). Together with former BitMex head of corporate development Akshat Vaidya, Arthur Hayes founded Maelstrom Capital, a fund they plan to significantly outperform the two largest cryptocurrencies by market capitalization.
the maelstrom website describes the company as the family office of Arthur Hayes. Established with Hayes’ personal crypto funds, Maelstrom is currently targeting infrastructure companies rather than a more general investment group. Since the firm is using the Hayes funds and currently has no liquidity providers, it may decide to be “patient” and be very careful about injecting money. According to Hayes, only worthwhile projects will benefit:
“We want to identify projects that are really quality. It’s not a spray and pray game because we don’t have outside LPs.”
Arthur Hayes on the immediate plan for Maelstrom
Speaking about the need to focus on quality, Hayes explained that years ago, too many projects were promoting themselves as the next big DeFi business. He said that due to the bear market and declining interest in initial coin offerings (ICOs), several companies pretended to be the next best thing to DeFi giants like Compound or Uniswap. Investors also had no problem funding these projects, especially since they knew they could get tokens and exit positions soon after.
Hayes and Viadya are taking a different approach, only targeting companies that can deliver on their promises. According to Hayes, doing the required work, especially in a bear market, distinguishes quality companies from copycats.
However, there’s no reason to think Hayes won’t invest in lesser-quality companies, including any memes or “shitcoins.” The former BitMex CEO says that while this could happen, now may not be the right time.
“We’re not saying we’re always going to invest in pure quality, we’re going to invest in a whole piece of (dog poop) because we received our tokens today. And three months from now, we could get rid of them because the narrative is there.”
hayes in bitcoin
Arthur Hayes is bullish on Bitcoin and believes that the king coin has survived the bear market. Speaking in a December interview with popular podcaster Scott Melker, Hayes said that Bitcoin would start to repair itself as irresponsible companies no longer have any.
According to him, centralized lending companies (CELs) try to solve financial problems by obtaining loans. After doing this, the next step is to sell your reserve asset, usually BTC. Hayes then said that anyone could prove his point by looking at the balance sheets of bankrupt companies. According to him, the records will show that they do not have Bitcoin because most of it would have been sold when they went bankrupt. Although he admits that there may be no evidence to support his theory, he believes that none of these companies with urgent fiat needs would hold on to their BTC.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
