Arthur Hayes criticizes VC token dumps and praises Hyperliquid’s revenue buyback model

Arthur Hayes has renewed his criticism of crypto venture capitalists who sell tokens into retail markets, arguing that most projects fail to return meaningful economic value to holders. The BitMEX co-founder said investors are increasingly focused on actual cash flows that token holders can capture, and he singled out Hyperliquid’s aggressive revenue buyback model as an example of a structure he views more favorably.

Hayes says most crypto projects fail token holders

In comments reported by Panews Lab, Hayes said most crypto projects do not meaningfully return economic value to their token holders, framing that as a core reason he has become more selective about where he puts capital. The report quoted him saying he had liquidated other altcoin positions while concentrating on assets that offer a clearer link between project revenue and tokenholder returns.

That position reflects a broader shift in crypto market thinking. Rather than valuing tokens only on narrative or network growth, Hayes said current investors are paying closer attention to whether holders can actually receive cash flows from the protocol itself.

Hyperliquid’s buyback model stands out

Hayes praised Hyperliquid because the platform reportedly uses 97% of its revenue to buy back HYPE tokens from the market. He described that as unusually shareholder-like behavior in a sector where many token launches distribute value to founders, early backers or treasury teams without offering direct economic return to public holders.

Stocktwits also reported that Hayes tied his bullish case for Hyperliquid to the project’s revenue model, saying it was using most of its income to repurchase tokens while taking market share from centralized exchanges. That combination, he argued, makes the token’s value proposition easier to understand than many other altcoins.

Why Hayes is skeptical of traditional token launches

Hayes’ criticism is aimed less at tokenization itself and more at how value is distributed after launch. His argument is that many venture-backed crypto projects bring tokens to market, raise capital, and then allow insiders or early investors to exit before retail buyers see durable upside.

By contrast, he sees revenue-backed buybacks as a mechanism that more directly links platform success to token value. In practical terms, that means if the business earns more, token holders may benefit through repurchases rather than relying solely on speculation or governance promises.

The market is listening

Hayes’ comments matter because he remains one of crypto’s most closely followed market voices. His recent discussion of Hyperliquid was notable enough to draw coverage after he sold some HYPE but still argued the project could become much larger over time.

That mix of skepticism and selective optimism reflects a maturing market, where token investors increasingly want evidence of economic alignment rather than just rapid user growth. Hayes’ core message is that the projects most likely to keep investor attention are those that can show clear, recurring value capture for token holders.

A broader debate over crypto value

The debate Hayes is pushing is becoming central to how the industry talks about token design. If a project’s revenue does not flow back to holders in some form, critics argue the token may function more like a speculative instrument than a claim on underlying business value.

Hyperliquid’s buyback structure has therefore become a useful case study for that debate. Hayes is effectively arguing that the next phase of crypto investing will reward tokens that resemble equity-like cash flow vehicles more than those that depend on venture-backed marketing and insider distribution.

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