Market
Arthur Hayes on Revitalizing ICOs and Decentralized Innovation
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.
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 technologies like 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.
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 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.
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 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.
“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.
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.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin price started a fresh increase above the $104,000 zone. BTC is consolidating above $105,000 and might aim for a new all-time high.
- Bitcoin started a decent increase above the $102,500 resistance zone.
- The price is trading above $104,500 and the 100 hourly Simple moving average.
- There was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase if it stays above the $103,500 support zone.
Bitcoin Price Regains Traction
Bitcoin price started a decent upward move above the $102,500 zone. BTC was able to climb above the $103,500 and $104,000 levels.
The bulls even pushed the price above the $105,000 level. Besides, there was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair. The pair surpassed the 50% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
Bitcoin price is now trading above $104,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $107,000 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.
The first key resistance is near the $107,500 level. A clear move above the $107,500 resistance might send the price higher. The next key resistance could be $109,000.
A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level.
Downside Correction In BTC?
If Bitcoin fails to rise above the $107,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $104,500 level. The first major support is near the $103,500 level.
The next support is now near the $102,800 zone. Any more losses might send the price toward the $100,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $104,500, followed by $103,500.
Major Resistance Levels – $107,000 and $108,500.
AI tokens surged on Wednesday after President Donald Trump unveiled a new joint venture to invest up to $500 billion in artificial intelligence infrastructure.
The partnership involves major players such as OpenAI, Oracle, and SoftBank and will form a new entity called Stargate.
Market Focuses on AI Coins as Trump’s Stargate Initiative Gains Traction
The Stargate Project will invest $500 billion over the next four years, building new AI infrastructure in the US. The venture will focus on developing crucial data centers and the electricity generation required to power the AI sector.
The announcement has already had a noticeable impact on the broader market, particularly in AI-related cryptocurrencies. Following the news, the market capitalization of AI tokens surged by 9%, reaching $45.83 billion at press time, according to CoinGecko.
In fact, the market cap of AI agent tokens alone rose by 13% to hit $14.9 billion.
AI agent tokens, such as Virtuals Protocol, AIXBT, and AI16Z, saw impressive gains. Virtuals Protocol rose by over 13% in the past 24 hours, while AI16Z experienced a remarkable 36% increase. AIXBT token rose by 27% over the same period.
The surge in AI tokens reflects a broader shift in market interest as investors move capital towards more “sentient” tokens.
“Capital is rotating back from static memes to sentient coins,” AI researcher S4mmy commented on Twitter.
The analyst added that Fartcoin and AIXBT are sustaining their “mindshare dominance,” but face declining market caps after a heated run. Commenting on Virtuals Protocol, he said it continues to solidify its position as a backbone of the Agentic infrastructure.
Moreover, analyst CyrilXBT said he believes “AI will create generational wealth in 2025.”
“People said Bitcoin was a joke. People said AI agents are a gimmick. Guess what else they’ll say? ‘Why didn’t I listen when generational wealth was staring me in the face?,” CyrilXBT commented.
The shift towards AI is particularly interesting, given the trend of investments a few days back. Capital was flowing into Donald Trump-related tokens, such as TRUMP and MELANIA, which have seen significant volatility.
However, BeInCrypto reported that smart money traders are now focusing on AI tokens after the hype around TRUMP faded. According to data from Nansen, a substantial amount of VIRTUAL, FARTCOIN, and AIXBT tokens are held by smart money.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Ethereum price is struggling below the $3,500 resistance while Bitcoin gains. ETH is consolidating above $3,150 and might aim for an upside break.
- Ethereum failed to gain pace for a close above $3,400 and $3,450.
- The price is trading above $3,300 and the 100-hourly Simple Moving Average.
- There is a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase if it clears the $3,400 resistance level.
Ethereum Price Aims Key Upside Break
Ethereum price started a decent upward move from the $3,200 level but upsides were limited compared to Bitcoin. ETH cleared the $3,250 resistance to move into a short-term bullish zone.
The bulls were able to push the price above the $3,300 resistance zone. Besides, there was a clear move above the 50% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low. However, the bears are still active below $3,400.
Ethereum price is now trading above $3,300 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level or the 61.8% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low.
There is also a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD. The first major resistance is near the $3,400 level. The main resistance is now forming near $3,445.
A clear move above the $3,445 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,720 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $3,400 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250.
A clear move below the $3,250 support might push the price toward the $3,200 support. Any more losses might send the price toward the $3,120 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,200
Major Resistance Level – $3,400
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