Arthur Hayes, the co-founder of BitMEX, is advocating for a return to the roots of initial coin offerings (ICOs), calling for a decentralized, retail-focused approach to crypto funding. In his manifesto, “How to Make ICOs Great Again,” Hayes critiques the current dominance of venture capital ( VC ) firms and centralized exchanges (CEXs), which he argues have sidelined retail investors in favor of institutional interests. Hayes highlights how today’s crypto landscape has strayed from its core principles of decentralization and community empowerment. He criticizes the influence of VCs and CEXs, which he likens to a "CEXually transmitted disease," for pushing projects toward inflated valuations that alienate ordinary investors. “Why did we forget that crypto was meant to empower retail investors?” Hayes asks. He identifies three key factors that have driven crypto’s success: decentralization as a counter to traditional power structures, revolutionary blockchain technology, and the speculative drive for financial gains. However, he argues that retail investors—the backbone of crypto’s meteoric rise—have been marginalized by projects that cater to institutional players. Meme coins, despite their speculative nature, represent a more inclusive model by allowing retail participants to take part in the market without gatekeepers. Hayes calls for a revival of ICOs as a solution. He sees them as a way to return power to communities by enabling direct fundraising and broad participation. While he acknowledges the failures of many 2017 ICOs , he argues that their speculative nature was a feature, not a flaw, allowing retail investors to aim for significant financial rewards. “Retail investors would rather take a risk on a small, decentralized project than invest in a heavily inflated VC-backed token,” Hayes explains. He outlines a roadmap to revitalize ICOs, emphasizing the importance of decentralization, faster token issuance, and better technology. Advances in blockchain infrastructure, like lower transaction costs and improved scalability, now make ICOs more viable. Non-custodial wallets and user-friendly platforms further reduce barriers to entry, enabling more people to participate. Hayes advocates for avoiding centralized platforms and VC-backed projects with high valuations and low circulating supply. Instead, he encourages the community to embrace the speculative and democratic nature of decentralized ICOs. “It’s time to reject VC dominance and return to a system where retail investors can dream big and take bold risks ,” he concludes. With the market showing signs of entering a new bull cycle, Hayes predicts a resurgence of ICOs driven by retail investors and decentralized platforms like Pump.fun and Spot.dog. These tools, he believes, will empower a new wave of innovation, restoring crypto’s spirit of experimentation and financial inclusion.
