🔥 Arthur Hayes Proposes a Return to the ICO Model
posted 15 hr ago
BitMEX co-founder Arthur Hayes has published a thought-provoking essay, The Cure, in which he critiques the current trajectory of the crypto industry. He highlights how venture capital has steered the sector away from its decentralized origins and proposes a solution: bringing back the ICO model.
Hayes criticizes the dominance of venture capital (VC), which replaced ICOs following their 2017 boom. He argues that VCs prioritize their own security by investing in projects with inflated Fully Diluted Valuations (FDVs) and limited token circulation, ultimately leaving retail investors with the losses.
According to Hayes, the VC ecosystem mirrors traditional finance (TradFi) models, valuing founders based on credentials like their educational backgrounds and previous affiliations, rather than genuine innovation or talent.
He believes one of crypto's core principles is the ability for ordinary individuals to invest early in promising projects. The VC model has eroded this opportunity, as tokens often debut on exchanges at already inflated valuations.
Arthur Hayes calls for a revival of ICOs, emphasizing their openness and accessibility. He describes ICOs as a means for teams to directly raise funds from the community without relying on intermediaries like VC firms or centralized exchanges, which often distort the market.
He concludes that the modern crypto ecosystem—supported by lower transaction costs, improved user interfaces, and innovative blockchain solutions—can facilitate a new wave of ICOs that better reflect crypto's foundational values.
More breaking news
More breaking news
Breaking news
⚡ Martial Law Crashes South Korea's Crypto Market
Breaking news
📣 BAYC and ApeCoin Creators Acquire Tokenproof Tech Team
