Arthur Hayes says ‘points’ better than ICO, yield farming for crypto adoption

BitMEX co-founder Arthur Hayes predicted that successful Web3 projects would adopt a “points” program before conducting token generation events.

Former BitMEX CEO and Maelstrom chief investment officer Arthur Hayes published a blog post arguing the case for “points” as a better alternative to initial coin offerings (ICOs) and yield farming when it comes to crypto fundraising and engagement.  

On Feb. 9, Hayes wrote in a blog titled “Points Guard” that while ICOs and yield farming had their benefits, they’ve also brought about several challenges for crypto projects. For example, while ICOs may allow millions of retail investors to purchase project tokens, giving them a chance to invest early in new potential innovations, they would also attract regulatory hurdles. “When you sell something to retail, some regulators call that a ‘security’ and require you to do a lot of shit that you don’t want to do.”

On the other hand, while yield farming allows users to get tokens for using protocols, this will have repercussions if “pursued too aggressively.” Hayes explained that this could inflate the finite token supply very quickly. As a result, the token’s price could fall, leaving users with no more incentives to use the protocol.

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