Privacy concerns associated with artificial intelligence may be one of the strongest cases yet for having certain altcoins or cryptocurrencies. That was one of Arthur Hayes’ arguments Consensus 2026where the BitMEX co-founder made a broad defense of the altcoin market and named the specific tokens he’s betting on.
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Hayes sees AI surveillance fueling demand for privacy coins
Hayes said governments, large tech companies and AI systems are becoming increasingly effective at monitoring blockchain activity.
As these tools become more powerful, he argued, more people will want financial tools that shield their transactions from prying eyes.
Zcash, a cryptocurrency built around the privacy of transactions, has been singled out as one that can benefit. “There is a role for private money in the Internet,” Hayes said.
The remarks came during a broader conversation about the future of alternative cryptocurrencies — assets that have repeatedly faced waves of skepticism, particularly after sharp market declines.
Hayes argued against the idea that institutional money and tighter regulation would wipe out most of the market. His position was simple: altcoins will keep coming, and some will generate real, lasting value.
Arthur Hayes Says Altcoin Will Never Die…
With respect…
Some of them absolutely need it 😭
There are more than 10 million tokens fighting for the same liquidity.
At some point the market must stop financing:
Food Drinks Elon Baby GPT 4.0The next alternate season won’t save everything.… pic.twitter.com/pkx2C3jtt9
— MANDO CT 🇮🇪 🇦🇪 🇬🇧 (@XMaximist) May 6, 2026
Hyperliquid tops his list of altcoin bets
Of all the tokens discussed by Hayes, Hyperfluid attracted the most detailed attention. He described decentralized trading platforms as among the most consistently profitable models in crypto history, pointing to the wealth they created for early entrants.
Hyperliquid, in his view, represents the next step in that lineage — combining a fast infrastructure with a token structure that he finds truly attractive.
One feature Hayes highlighted: approximately 97% of the platform’s protocol revenue is returned to token holders through redemptions. He also noted that no part of the token offering is set aside for venture capital investors – an arrangement that sets it apart from many other projects.
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The parallel stock market supports his case for altcoins
Hayes compared the altcoin space to the broader stock market, where most companies eventually fail, but a few go on to make exorbitant returns.
Tokens, he said, should be thought of like software startups — high failure rates, but worth participating because of what the winners can deliver.
Based on reports from the event, Hayes placed crypto markets as efficient environments for experimentation and capital creation, where new ideas can be tested and financed outside traditional financial systems.
Featured image from MetaAI, chart from TradingView
