Arthur Hayes, founder of BitMEX, released a lengthy article (The Cure), mentioning that since the end of the 2017 ICO boom, the way capital formation in the market has changed. However, recent technological advancements will allow ICOs to again become an important fundraising method in the crypto market. He also shares how to evaluate good ICO projects and the platform Spot.dog, which is invested by his family office Maelstrom.

How to evaluate a good ICO project?

Hayes believes: Intrinsic value of ICO = Meme content virality + potential technology

The project's appearance, feel, and established purpose align with the current spirit of the crypto era, giving the team meme value. If this meme is widely circulated, the project will gain attention.

Its potential technology can be assessed in the following ways:

  • Has the team built something substantial in Web2 or Web3?

  • Is the proposed content technically feasible?

  • Can the potential technology solve globally significant problems and ultimately attract millions or billions of users?

ICOs will again become an important fundraising method in the crypto market

Hayes believes that as the market evolves, ICOs will again become an important fundraising method in the cryptocurrency market. The evolution of technology allows current ICOs to be issued in a faster and more efficient manner.

Extremely low gas fees

In 2017, the hot ICOs caused gas fees to soar, making it quite common to be unable to use the Ethereum network. However, now, the cost of block space on Ethereum, Solana, Aptos, and other Layer 1s is very cheap. The current order throughput is several orders of magnitude higher than in 2017.

Using existing frameworks to list tokens is very quick

Now, listing tokens on frameworks like Pump.fun takes just a few minutes, making it easier for startup teams to raise funds through ICOs and deliver tokens within days. This is different from previous ICO cycles, where it took months or years between token subscription and delivery.

Good user interface/user experience

The crypto community is very familiar with using browser-based non-custodial wallets, such as Metamask and Phantom. Cryptocurrency investors can easily load their crypto browser wallets, connect them to dApps, and then purchase assets. This will make it easier for ICOs to secure funding.

Spot.dog, invested by Maelstrom

As retail cryptocurrency enthusiasts have fallen in love with meme coins, there is a strong desire to trade super speculative assets on DEXs. This means that after tokens are delivered to investors, if there is sufficient liquidity to trade ICO tokens immediately, it allows investors to realize true price discovery quickly.

Therefore, Arthur Hayes' family office Maelstrom invested in Spot.dog, believing it will become the preferred place for meme coins, all cryptocurrencies, and ultimately new ICO spot trading. It is currently building a meme coin trading platform to support web2 specifications, and their secret weapon is not their technology, but their distribution technology.

For example, StockTwits, a social media platform designed specifically for investors and traders, has 1.2 million unique visitors per month, and its 'cryptocurrency buy button' is powered by Spot.dog. The exclusive partner for the Telegram Trading Bot of Australian rapper Iggy Azalea's meme coin MOTHER is also Spot.dog.

Hayes also reminds investors to say 'no' to project tokens with the following characteristics

  • Fully diluted valuation (FDV) supported by venture capital, high and low liquidity projects

  • Tokens with overvalued valuations on exchanges

  • Individuals who are not responsible for their trading

This article by Arthur Hayes: The ICO frenzy is about to return, how to evaluate and invest in ICO projects? First appeared on Chain News ABMedia.