Privacy concerns related to artificial intelligence could be one of the strongest arguments yet for owning certain things altcoins or cryptocurrencies. That was an argument that Arthur Hayes made Consensus 2026where the BitMEX co-founder laid out a broad defense of the altcoin market and named the specific tokens he’s betting on.
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Hayes sees AI surveillance driving demand for privacy coins
Hayes said governments, big tech companies and AI systems are becoming increasingly effective at tracking blockchain activity.
As these tools become more powerful, he argued, more people will want financial tools that shield their transactions from outside eyes.
Zcash, a cryptocurrency built around transaction privacy, was picked as a cryptocurrency that could benefit from this. “There is a role for private money on the Internet,” says Hayes.
The comments came amid a broader conversation about the future of alternative cryptocurrencies — assets that have repeatedly faced waves of skepticism, especially after sharp market declines.
Hayes pushed back against the idea that institutional money and stricter regulations will wipe out most of the market. His position was simple: altcoins will keep coming, and some will generate real, lasting value.
Arthur Hayes says altcoins will never die out…
With respect…
Some of them absolutely have to 😭
There are more than 10 million tokens fighting for the same liquidity.
At some point the market has to stop financing:
AI Inu Elon Pepe GPT 4.0The next alt 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 Hayes discussed, Hyperfluid attracted the most detailed attention. He described decentralized trading platforms as one of the most consistently profitable models in cryptocurrency history, noting the wealth they created for early participants.
According to him, Hyperliquid represents the next step in that line: combining fast infrastructure with a token structure that he finds truly attractive.
One feature Hayes highlighted: approximately 97% of the platform’s protocol revenue flows back to token holders via buybacks. He also pointed out that no part of the token offering was reserved for venture capital investors – an arrangement that sets it apart from many other projects.
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The parallel with the stock market supports his case for Altcoins
Hayes compared the altcoin space to the broader stock market, where most companies ultimately fail, but a handful still generate outsized returns.
Tokens, he said, should be viewed as software startups: a high failure rate, but worth participating in because of what the winners can deliver.
Based on reports of the event, Hayes framed cryptocurrency markets as efficient environments for experimentation and capital formation, where new ideas can be tested and financed outside traditional financial systems.
Featured image from MetaAI, chart from TradingView