BitMEX CEO Proposes Crypto Points System as Alternative to ICOs
Due to growing regulatory challenges and concerns surrounding ICOs (Initial Coin Offerings) in the crypto industry, BitMEX CEO Arthur Hayes has suggested a crypto ‘points’ system as an alternative. In a blog post titled ‘Points Guard,’ Hayes emphasized the development of sustainable Web3 services and highlighted the points system as a novel approach for crypto-backed enterprises to secure funds and enhance engagement.
Crypto Points to Boost Community Engagement
According to Hayes, the crypto points system combines the benefits of ICOs and yield farming, making it an attractive fundraising and user acquisition tool. Unlike ICOs, which are often labeled as securities by regulators, the points system does not promise tangible future rewards to users, thus avoiding regulatory issues. The points can be converted at the user’s discretion later, providing flexibility and trust.
Zero Token Emission Schedules
Web3 protocols that use yield farming usually have pre-scheduled token emission periods, leading to an increase in token supply and a decrease in price. However, the points system offers flexibility as the points-to-token ratio can be changed anytime. Trust is crucial for the success of the points system, and bad actors adopting this method could lead to abuse or breaches of trust.
Hayes’ Bullish Projection on Bitcoin Price
Arthur Hayes, known for his bullish stance on Bitcoin, predicts that 1 Bitcoin could be worth between $750,000 to $1 million by 2026. He believes it will be the biggest boom in financial markets in history.
The post Arthur Hayes Argues for ‘Points’ System Instead of ICOs for Crypto Fundraising appeared first on Cryptonews.
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