PANews reported on December 3 that Arthur Hayes, former CEO of BitMEX, published a new article, analyzing in detail the development trends of the cryptocurrency market and the reasons why ICO (initial coin offering) may return to the market.
Since the ICO wave receded in 2017, the capital formation method of the crypto market has gradually deviated from the original path. VC-backed tokens have not performed well in this bull market. In 2024, new tokens performed about 50% lower than mainstream currencies. At the same time, the high FDV (fully diluted valuation) and low circulating supply model also failed to meet the needs of retail investors.
Hayes believes that the ICO model has significant advantages. Modern frameworks support rapid token issuance and trading, providing good timeliness; the development of DEX provides projects with sufficient trading environment and liquidity; and the lowering of the threshold for using crypto wallets and the improvement of blockchain performance have greatly improved the user experience.
For project owners and investors, Hayes suggested that they should be cautious about VC-backed projects with high FDV and low circulation, and should also be wary of highly valued tokens listed on CEX. He particularly emphasized that they should not easily accept the view that trading behavior is "irresponsible", but should make judgments based on the actual market situation.
