Arthur Hayes Shows How
to Make
ICOs Great Again
Arthur Hayes is calling for a return to the glory days of initial coin
offerings (ICOs). His call comes amid a playing field that is increasingly
dominated by venture capital (VC) gatekeepers and centralized exchanges
(CEXs).
The BitMEX co-founder’s manifesto, “How to Make ICOs Great Again,” critiques
the current state of crypto capital formation. He advocates for a
decentralized, community-driven approach that prioritizes retail investors and
revitalizes the industry s speculative spirit.
The Industry’s Malaise
Hayes paints a grim picture of crypto s growth, where once-vibrant
grassroots movements have succumbed to the influence of centralized entities.
He likens today’s project founders to patients afflicted with a
CEXually transmitted disease, where the whims of exchanges and
VCs dictate their decisions.
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Hayes argues that crypto s founders have forgotten its foundational
ethos: decentralization , user empowerment, and wealth creation for retail
participants.
Why did we as an industry forget about the third pillar of crypto’s
value proposition — making retail rich? Hayes quipped .
He points to the dismal performance of VC-backed tokens in recent years. He
argues that these projects often debut with inflated, fully diluted valuations
(FDVs) and low circulating supplies. However, they alienate retail investors
by prioritizing institutional interests. As BeInCrypto reported, projects like
Hamster Kombat turn down VC support for this reason.
Nevertheless, Hayes attributes crypto’s meteoric rise to three key factors:
Government Capture: Decentralization serves as an antidote to the
concentration of power by governments and large corporations. It offers a
system free from traditional gatekeepers.
Magical Technology: Blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн technologies like Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin s resilience
and potential have proven their value as revolutionary monetary systems.
Greed: The lure of significant financial returns has driven adoption. Retail
investors seeking life-changing gains are often overlooked in traditional
finance.
To illustrate the divide, Hayes contrasts the egalitarian nature of meme coins
with the exclusivity of VC-backed projects. Meme coins, he says, rely on
memetic content virality, allowing retail participants to gamble
on speculative assets without gatekeeping.
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Conversely, VC coins are burdened by inflated valuations. A closed ecosystem
of elite institutions and investors with little regard for the retail market
perpetuates them.
“Retail would rather roll the dice on a $1 million market cap meme coin than a
$1 billion FDV project backed by the most ‘esteemed’ cohort of VCs,” Hayes
explained.
The Case for ICOs
Hayes sees ICOs as the antidote• Музыка » Музыкальные произведения » Музыкальный альбом » Альбомы Morcheeba » The Antidote to the industry s malaise. In their
purest form, ICOs empower teams from diverse backgrounds to raise funds
directly from the community without intermediaries. This model embodies
decentralization, enabling innovation while giving retail investors access to
early-stage opportunities.
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Drawing lessons from the 2017 ICO boom, Hayes highlights two intrinsic value
drivers:
Memetic Value: Projects that resonate with the zeitgeist can attract users and
build a strong community.
Potential Technology: ICOs fund teams to create groundbreaking technologies
addressing global challenges, often before a single line of code is written.
While acknowledging that many ICOs failed spectacularly, Hayes argues this
speculative nature is a feature, not a bug. It allows retail investors to
dream big and aim for transformative gains. Against this backdrop, Hayes
outlines a roadmap for revitalizing ICOs and making them great again.
Faster Token Issuance: New frameworks and liquid decentralized exchanges
(DEXs) allow teams to distribute tokens within days, enabling immediate
trading and price discovery.
Improved Infrastructure: Advances in blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн scalability and reduced
transaction costs, particularly on chains like Aptos ( APT ) and Solana ( SOL
), make ICOs more accessible.
Enhanced User Experience: Non-custodial wallets and streamlined platforms
lower barriers to entry, ensuring broader participation.
CEX Independence: By bypassing centralized platforms, ICOs eliminate
gatekeeping, giving power back to the community.
Further, Hayes cautions investors to avoid the traps of the current system,
urging the crypto community to embrace the speculative, democratized nature of
ICOs, which offer a chance for life-changing financial returns without the
constraints of traditional finance.
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Just say no to VC-backed high FDV, low float projects, and overvalued
tokens on CEXs,” he noted.
As the crypto market enters a potential new bull cycle , Hayes predicts a
resurgence of ICOs driven by an engaged, risk-tolerant community. Platforms
like Pump.fun and Spot.dog exemplify the shift towards decentralized,
retail-focused capital formation.
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With these tools, Hayes envisions a future where crypto once again empowers
individuals to take audacious bets and reap the rewards of decentralized
innovation.
“Let’s return to the spirit of crypto’s early days. It’s time to make ICOs
great again,” Hayes concluded.
ðTop crypto platforms | December 2024
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ðTop crypto platforms | December 2024
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ðTop crypto platforms | December 2024
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