Arthur Hayes Predicts a Resurgence of ICO’s “Glory Days”

Amidst the growing dominance of venture investors and centralized platforms, there is a call to return to the “glory days” of ICOs and make them “great again.” This is the focus of a new essay by former BitMEX CEO Arthur Hayes.

“The Cure” is an essay about how to cure CEXually Transmitted Diseases by bringing back ICOs.https://t.co/X3zjpnvJp5 pic.twitter.com/bGBNsRQFFW

— Arthur Hayes (@CryptoHayes) December 2, 2024

The expert proposed a decentralized, community-driven approach that prioritizes retail investors and revives the “speculative spirit of the industry.”

Hayes compared today’s project founders to patients suffering from “exchange-transmitted diseases,” where their decisions are dictated by the whims of platforms and venture funds.

This peculiar “ailment” has replaced the foundational principles of decentralization, user empowerment, and wealth creation, lamented the entrepreneur.

To support his argument, the expert cited the dynamics of tokens backed by venture funds in recent years. According to him, projects often debut with inflated FDV and low supply volume.

Hayes linked the active growth of the crypto space to three key factors:

1. Government pressure. Decentralization serves as an antidote to the concentration of power by governments and large corporations. It envisions a system free from traditional controllers.
2. “Magic” technologies. The resilience and potential of blockchain have proven its value as a revolutionary monetary system.
3. Greed. The lure of significant financial gain has driven adoption. Retail investors focused on “multipliers” are often ignored by TradFi.

To illustrate this divide, Hayes pointed to the boom in meme coins. These instruments allow ordinary users to engage in asset speculation outside of control, often to the detriment of projects with FDV over $1 billion, supported by “respected” venture funds.

In ICOs, the former BitMEX CEO sees an “antidote” to the industry’s ailment. This form is accessible to all and requires no intermediaries. The model embodies decentralization and fosters innovation, providing retail investors with early-stage opportunities.

Reflecting on the ICO boom of 2017, Hayes identified two factors of intrinsic value:

• “Memetic value” — projects that resonate with society, capable of attracting users and creating a strong community;
• Potentially revolutionary technology aimed at solving global problems.

According to the entrepreneur, the collapse of many ICO projects is a feature, not a flaw. It allows retail investors to dream big and strive for transformational achievements.

Hayes proposed a roadmap to restore ICOs to “greatness”:

1. Accelerated token issuance. New mechanisms and liquid DEX allow teams to distribute assets within days.
2. Enhanced infrastructure. Advances in blockchain scalability and reduced transaction costs.
3. Improved user experience. Non-custodial wallets and optimized platforms lower entry barriers.
4. Independence from CEX. By bypassing centralized platforms, ICOs eliminate control, returning power to the community.

Hayes warned investors of the pitfalls of the current system and urged them to embrace the speculative, democratic nature of ICOs, which offer the chance for returns without TradFi restrictions.

The entrepreneur saw platforms like Pump.fun and Spot.dog as examples of a shift towards decentralized capital formation. Such initiatives, in his view, contribute to the revival of ICOs and the strengthening of a risk-oriented community.

“Let’s return to the spirit of the early days of cryptocurrency. It’s time to make ICOs great again,” concluded Hayes.

In October, the former BitMEX CEO highlighted the reasons for the negative dynamics of tokens after listing on CEX.