Private Market Funding Faces Structural Challenges
In recent years, increasing regulatory pressure has led many large private firms to remain private for longer periods. This trend has shifted investment returns toward private capital and credit investors, leaving retail investors with limited access to early-stage opportunities.
On-Chain IPOs Could Transform Capital Markets
Brian Armstrong, CEO of Coinbase, recently shared on X that companies may soon be able to conduct IPOs entirely on blockchain networks. This innovation could significantly cut costs, eliminate inefficiencies, and enhance market transparency and inclusivity.
Liquidity and Valuation Mechanisms Need Rethinking
- Private firms often lack liquidity before going public, leading to valuations that don't reflect true market demand.
- Poor post-IPO stock performance highlights flaws in the current system.
- On-chain IPOs can enable better capital allocation and broader investor participation.