{"id":10579,"date":"2024-02-09T17:53:31","date_gmt":"2024-02-09T15:53:31","guid":{"rendered":"https:\/\/forklog.com\/en\/arthur-hayes-proposes-an-alternative-to-icos-for-cryptocurrency-promotion\/"},"modified":"2024-02-09T17:53:31","modified_gmt":"2024-02-09T15:53:31","slug":"arthur-hayes-proposes-an-alternative-to-icos-for-cryptocurrency-promotion","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/arthur-hayes-proposes-an-alternative-to-icos-for-cryptocurrency-promotion\/","title":{"rendered":"Arthur Hayes Proposes an Alternative to ICOs for Cryptocurrency Promotion"},"content":{"rendered":"<p>A new fundraising method through so-called <span data-descr=\"points\" class=\"old_tooltip\">points<\/span> is better suited for popularizing cryptocurrencies compared to ICOs and yield farming, according to former BitMEX CEO Arthur Hayes.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\u201cPoints Guard\u201d is an essay on the new pseudo-ICO crypto fundraising and engagement method. If you don\u2019t understand what points are and why they going to be used and abused, read on. <a href=\"https:\/\/t.co\/fR5ruXX4cT\">https:\/\/t.co\/fR5ruXX4cT<\/a> <a href=\"https:\/\/t.co\/2E2d6yiERh\">pic.twitter.com\/2E2d6yiERh<\/a><\/p>\n<p>\u2014 Arthur Hayes (@CryptoHayes) <a href=\"https:\/\/twitter.com\/CryptoHayes\/status\/1755739377089859672?ref_src=twsrc%5Etfw\">February 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In his essay Points Guard, Hayes highlighted the issues with ICOs, where participants may face scrutiny from regulatory bodies.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cSome regulators see the sale of assets to retail investors as the issuance of \u2018securities\u2019 and require you to do a lot of \u2018crap\u2019,\u201d<\/em> he noted.<\/p>\n<\/blockquote>\n<p>In the case of yield farming, aggressive token distribution can significantly increase supply, undermining price stability. Consequently, users may lose incentives to use the protocol, the expert emphasized.<\/p>\n<p>Unlike these methods, \u201cpoints\u201d can serve as a new element of so-called <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%9F%D0%B0%D1%80%D1%82%D0%B8%D0%B7%D0%B0%D0%BD%D1%81%D0%BA%D0%B8%D0%B9_%D0%BC%D0%B0%D1%80%D0%BA%D0%B5%D1%82%D0%B8%D0%BD%D0%B3\">guerrilla marketing<\/a>.<\/p>\n<p>According to Hayes, instead of instant asset issuance for using <span data-descr=\"decentralized applications\" class=\"old_tooltip\">dapps<\/span>, projects can offer points for participation, which users can convert into tokens at their discretion.<\/p>\n<p>The former BitMEX CEO is convinced that this approach will not be considered an investment contract between the team and the user. It does not involve future rewards or exchanging cryptocurrency for fiat. Such an interpretation could make \u201cpoints\u201d acceptable to regulators.<\/p>\n<p>With points, a project is not bound by a contract specifying a token issuance schedule. The conversion ratio can be changed at any time, the specialist clarified.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe ability to \u2018surgically\u2019 dynamically calibrate the issuance of points for specific actions across the ecosystem means that the team can achieve the desired effect in creating precisely the type of user interaction they want,\u201d<\/em> he explained.<\/p>\n<\/blockquote>\n<p>The former BitMEX CEO also added that with \u201cpoints,\u201d a project gains some independence from venture funds and other major players.<\/p>\n<p>Regarding retail investors, he sees points as a fairer way to reward participation, despite the uncertainty of airdrop execution and the points-to-tokens ratio.<\/p>\n<p>Hayes acknowledged that the concept is not without flaws. A points program can only be effective with high trust between the project and its users. The specialist did not rule out the possibility of malicious actors violating this condition.<\/p>\n<p>The expert predicted that successful Web3 startups will adopt his proposed concept, implementing a points program before token issuance.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThis will lead to protocol usage and excitement around a potential airdrop,\u201d<\/em> he concluded.<\/p>\n<\/blockquote>\n<p>Back in January, Hayes <a href=\"https:\/\/forklog.com\/en\/news\/arthur-hayes-explores-arbitrage-opportunities-following-bitcoin-etf-launch\">explored arbitrage opportunities<\/a> following the launch of a Bitcoin ETF.<\/p>\n<p>In February, Ripple&#8217;s CTO called the idea of issuing \u201cRobinhood\u201d tokens unsuccessful.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new fundraising method through so-called points is better suited for popularizing cryptocurrencies compared to ICOs and yield farming, according to former BitMEX CEO Arthur Hayes. \u201cPoints Guard\u201d is an essay on the new pseudo-ICO crypto fundraising and engagement method. If you don\u2019t understand what points are and why they going to be used and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1193,319,1377,36,1378,1258],"class_list":["post-10579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arthur-hayes","tag-ico","tag-profitable-farming","tag-regulation","tag-token-sales","tag-tokenomics"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=10579"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10579\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/10578"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=10579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=10579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=10579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}