Bitwise CIO Matt Hougan declared that regulated ICOs will drive the market in its next bull cycle. In a note to clients on Tuesday, Hougan noted that Coinbase’s new token sale platform, launched on November 10, marks a turning point. He predicts this shift will define the market by 2026, establishing “capital formation” as the industry’s fourth pillar.
Coinbase’s platform resumes token sales in the U.S. after six years. It will debut with Monad, a Layer 1 blockchain, from November 17 to 22. This sale will offer 7.5% of its total supply. Furthermore, the exchange is implementing strict rules for investors and issuers. Users will bid with USDC, prioritizing small bids. There will also be a six-month lockup and penalties for quick 30-day sales (flipping).
Is this the end of exclusive access for venture capitalists?
Hougan argues this move solves a key problem in traditional finance. The current system limits retail access to early opportunities, favoring institutions. Coinbase seeks to correct the excesses of the 2017-2018 ICO era. That period, described by Hougan as “a complete disaster,” ended with a harsh regulatory crackdown by the SEC.
However, current conditions are different. Hougan credited the SEC’s Paul Atkins for laying the groundwork for a compliant comeback. Atkins has publicly proposed “safe harbor” frameworks. Thanks to this new self-regulated structure, Hougan expects “a half-dozen or more billion-dollar ICOs” by 2026.
The resurgence in fundraising is already visible. MegaETH raised $50 million in September. Additionally, Kraken and Flying Tulip have also launched regulated platforms. Hougan believes compliant capital formation will become crypto’s fourth multi-trillion-dollar pillar, alongside Bitcoin, stablecoins, and tokenization.
