Privacy concerns around AI may be one of the strongest arguments yet for having some altcoins or cryptocurrencies. This was one of the arguments that Arthur Hayes made Consensus 2026where the BitMEX co-founder presented a broad defense of the altcoin market and listed the specific tokens he is betting on.

Hayes sees AI surveillance driving demand for privacy coins

Hayes said governments, huge tech companies and artificial intelligence systems are becoming more effective at tracking blockchain activity.

As these tools become more powerful, he argued, more people will want financial tools that protect their transactions from outside eyes.

Zcash, a cryptocurrency built around transaction privacy, has been highlighted as one that could bring benefits. “Online private cash plays an important role,” Hayes said.

The remarks came amid a broader conversation about the future of alternative cryptocurrencies – assets that have repeatedly faced waves of skepticism, especially after piercing market declines.

Hayes rejected the notion that institutional money and tighter regulation would destroy much of the market. His stance was straightforward: altcoins will continue to emerge, and some of them will generate real, lasting value.

Arthur Hayes says altcoins will never die…

Respectfully…

Some of them absolutely must 😭

There are over 10 million tokens competing for the same liquidity.

At some point the market must stop financing:
Elon Baby GPT 4.0 food drink

The next alternate season won’t save everything.… pic.twitter.com/pkx2C3jtt9

— MANDO CT 🇮🇪 🇦🇪 🇬🇧 (@XMaximist) May 6, 2026

Hyperliquid tops its altcoin bet list

Of all the chips Hayes mentioned, Hyperfluid drew the most attention. He described decentralized trading platforms as some of the most profitable models in cryptocurrency history, pointing to the wealth they created for early participants.

In his opinion, Hyperliquid is the next step in this lineage – it combines brisk infrastructure with a token structure that he finds really attractive.

One feature highlighted by Hayes: approximately 97% of the platform’s protocol revenue returns to token holders through redemptions. He also emphasized that no part of the token supply was intended for venture capitalists – which distinguishes it from many other projects.

The stock market parallel forms the basis of his argument regarding Altcoins

Hayes compared the altcoin space to the broader stock market, where most companies eventually fail, but a few generate above-average profits.

He said tokens should be thought of like software startups – high failure rate, but worth participating because of what the winners can deliver.

Based on the account of the event, Hayes was framed crypto markets as an capable environment for experimentation and capital accumulation where fresh ideas can be tested and financed outside established financial systems.

Featured image from MetaAI, chart from TradingView