Arthur Hayes Reveals His Altcoin Selection Criteria, Emphasizes Accumulating More Bitcoin

Huoxing Finance reports that on October 17, Arthur Hayes, in a recent interview with The Rollup, expressed disappointment with the overall performance of altcoins over the past few years, noting that many new projects are overvalued with hidden risks. He emphasized that his current fund strategy is to use altcoin trading to accumulate more Bitcoin, rather than treating trading itself as the goal. Arthur Hayes also outlined his criteria for selecting altcoins: 1. Focus on “busted charts”: tokens that have declined 75%-80% from their local highs. He believes such assets can deliver approximately 5x returns within months, with relatively low capital risk. 2. Completely avoid new token launches: high FDV (fully diluted valuation), low circulating supply, and excessive unlocking of pre-sale investors introduce too many hidden risks. 3. Prefer projects that have survived since the 2020 DeFi Summer, as their valuations reflect actual usage rather than pure narrative speculation. 4. Barbell strategy: one end consists of hard money/scarcity assets (Bitcoin, Ethereum, Zcash); the other end comprises on-chain business protocols with real cash flows and buyback programs (benefiting from gradual regulatory acceptance in the United States).