One of the co-founders of crypto-derivatives exchange BitMEX launched a scathing attack on some major tokens that have yet to launch this Thursday. Writing in a BitMEX newsletter, Arthur Hayes, who is also the exchange’s CEO, said that many of these tokens are worthless.

Most of the tokens were sold through so-called ‘simple agreements for future equity’ (SAFTs). These are similar to an initial coin offering (ICO) except that the coin or token hasn’t even been launched. In effect, an investor is betting that, when a token is launched, it will be more valuable than the sum they paid for it.

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Amongst the tokens listed by Hayes are those issued by Telegram, tZero, and Filecoin. The largest amount of money raised, by far, was Telegram. To date, investors have plowed approximately $1.7 billion into the messaging app’s token which, if all goes to plan, will launch in the first quarter of next year.

BitMEX CEO – “who is going to buy this shit?”

But if Hayes is to be trusted, we should question whether or not some of these firms will even be launching their tokens.

“These deals have massive valuations, and many of the most venerated token funds took down large chunks,” wrote the exchange CEO. “It is unclear when, if ever, these deals will ever list on the secondary market.”

Hayes then cut directly to the chase, saying that it is unlikely, even if the coins do go to market, that anyone will buy them.

“Given the large amount of token supply out there, who will buy this shit?” he said. “Can you really mark these investments to the last round price?”

Finishing off his newsletter, Hayes said the companies that issued the tokens wouldn’t be able to hide their losses next year.

“2019 is going to be the year of reckoning for many funds,” he said. “You can mark something to an absurd level in year 1. But the meter starts again on January 1st. If these things come to market, there will be no accounting tricks to hide the gargantuan losses that these funds will post.”