Arthur Hayes says Maelstrom is “patient” and is currently only seeking to invest in projects that can prove their worth.
BitMex CEO Arthur Hayes plans to beat the returns offered by Bitcoin (BTC) and Ether (ETH). Together with former BitMex Head of Corporate Development Akshat Vidya, Arthur Hayes founded Maelstrom Capital, a fund they are planning that would significantly outpace the two largest cryptocurrencies by market capitalization.
swirl website He describes the company as the Arthur Hayes family office. Set up using Hayes’ personal crypto funds, Maelstrom is currently targeting infrastructure companies rather than a more general investment group. Since the company uses Hayes funds and currently has no liquidity providers, it can decide to be patient and very careful with its fund injections. According to Hayes, only projects worthwhile will benefit:
“We want to identify projects that are actually quality. It’s not a game of spray and pray because we don’t have outside LPs.”
Arthur Hayes discusses the Maelstrom’s immediate plan
Speaking of the need to focus on quality, Hayes explained that for years, many projects were promoting themselves as the next big DeFi deal. He said that due to the bear market and waning interest in initial coin offerings (ICOs), many companies pretended to be the next best thing after DeFi giants like Compound or Uniswap. Investors had no problem financing these projects, especially since they knew they could get hold of the tokens and abandon the positions soon after.
Hayes and Viadya take a different approach and focus only on companies that can deliver on their promises. According to Hayes, doing the work required, especially in a bear market, distinguishes quality companies from imitators.
However, there is no reason to believe that Hayes will not invest in lower quality companies, including any meme or “sh*t” coins. While this may happen, the former CEO of BitMex says, now may not be the right time.
“We’re not saying we’ll always invest in pure quality, we’ll invest in a whole piece of (dog poo) because we get the tokens today. And in three months, we can get rid of them because the narrative is there.”
Hayes on Bitcoin
Arthur Hayes is bullish on Bitcoin and believes that the king coin has survived the bear market. Speaking in December with Scott Melker, Hayes said that Bitcoin will start to fix itself because irresponsible companies have nothing left to do with it.
According to him, central lending companies (CELs) are trying to solve financial problems by obtaining loans. Having done that, the next step is to sell their spare assets, usually BTC. Hayes then said that anyone could prove a point by looking at the balance sheets of bankrupt companies. According to him, the records will show that they did not have the bitcoins because most of them would have sold when they entered bankruptcy. Although he admits that there may be no evidence to support his theory, he believes that none of these companies with urgent cash needs would hold on to their Bitcoin.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not in the depths of cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.