Arthur Hayes, co-founder of BitMEX, announced on June 6 that he had sold his entire holding of WLD tokens. Hayes’ decision marked a sharp shift in the market sentiment for Worldcoin, which had recently shown a strong upward trend. While the broader altcoin market struggled, WLD at first stood out before entering a period of heightened volatility in early June.
From bullish outlook to rapid exit
Just days earlier, on June 3, Hayes outlined an optimistic scenario for WLD. On June 4, he repeated his positive view, identifying major tech IPOs as a macro trigger and highlighting Worldcoin as a high-volatility representative of the AI IPO cycle. Yet by June 6, he revealed he had closed his position entirely.
Arthur Hayes explained that he exited the WLD market after concluding that the chart was moving in the wrong direction and closed his position completely.
This turnaround stood out as a decisive move made within days, rather than a gradual portfolio adjustment. At the same time, the altcoin market as a whole entered a period of stagnation. Tokens driven by strong narratives, which previously attracted liquidity, began to lag behind more established and defensive cryptocurrencies.
Crypto analyst Stacy Muur noted in her June 5 report that while the broader WLD market had declined by around 10 percent, WLD itself surged by roughly 68 percent. Muur suggested that Hayes and his fund, Maelstrom, may have influenced this divergence. According to her, the episode reflects a cycle where narrative-driven price moves accelerate and then require reassessment once the momentum slows.
Fourth major position closed in two days
The WLD sale marked the fourth significant position Hayes exited within just two days. On June 4, he had liquidated his entire holdings of HYPE and NEAR, stating that the rationale behind these moves would be detailed in his forthcoming piece titled “Reality Test,” set for release next Tuesday.
Hayes pointed to several factors driving his decisions, including the impact of conflict involving Iran on energy prices, expectations of three major AI IPOs before the start of the third quarter, and the possibility that U.S. President Donald Trump might adopt an anti-AI stance ahead of the midterm elections.
The following day, he also exited his Zcash position. This action came amid ongoing discussions over a security vulnerability in the Orchard pool. Hayes argued that the position had become unsustainable since there was no official proof the flaw would not allow unauthorized coin creation.
Mini glossary: The Orchard pool is a mechanism in the Zcash network designed to support transaction privacy and shielded transfers. A security vulnerability here could raise serious questions about the integrity of supply and verification in the network.
What does this signal for the altcoin market?
Although Hayes’ individual trades do not dictate prices on their own, his actions tend to sway overall market sentiment. His abrupt pivot from accumulating altcoins to full liquidation in a matter of days may indicate his expectation of tougher times ahead for assets outside of Bitcoin and Ether.
Rising energy costs, capital flows redirecting toward AI IPOs, and the potential for political or regulatory pressure on the AI sector were all cited as factors that could create more challenging conditions for riskier assets. The fact that WLD outperformed similar tokens in its rally also raises questions about how resilient such gains can be once a major backer departs.
