Arthur Hayes Pushes for the Revival of ICOs in Crypto Funding

Roadmap for ICO Revival

Arthur Hayes, co-founder of BitMEX, has released a manifesto titled "How to Make ICOs Great Again," critiquing the dominance of venture capital (VC) and centralized exchanges (CEXs) in crypto funding. Hayes argues that the crypto industry has strayed from its core values of decentralization, user empowerment, and grassroots wealth creation.

He describes the current landscape as overly controlled by institutional gatekeepers, prioritizing VC interests over retail investors. According to Hayes, many VC-backed tokens launch with inflated valuations and limited circulating supply, alienating the average investor.

The Case for ICOs: A Decentralized Future

Hayes believes that initial coin offerings (ICOs) can restore crypto’s original ethos by providing community-driven funding models. ICOs enable teams to raise capital directly from retail participants, bypassing intermediaries like VCs and CEXs. This approach democratizes access to early-stage investments while fostering innovation.

From the 2017 ICO boom, Hayes identifies two key drivers of success:

Memetic Value: Projects that resonate culturally can attract strong community support.

Technological Potential: Funding innovative solutions early enables transformative breakthroughs.

While he acknowledges past ICO failures, Hayes views their speculative nature as a feature, offering retail investors opportunities for significant returns.

Roadmap for ICO Revival

Hayes outlines steps to revitalize ICOs:

Faster Token Issuance: Leveraging decentralized exchanges for immediate trading.

Improved Blockchain Infrastructure: Utilizing scalable, cost-effective networks like Solana and Aptos.

Enhanced Accessibility: Non-custodial wallets and intuitive platforms simplify participation.

CEX Independence: Removing centralized gatekeepers empowers communities.

By embracing the speculative and democratized nature of ICOs, Hayes envisions a crypto industry that prioritizes retail investors over institutional interests, restoring its revolutionary potential.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Arthur Hayes

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.