At the Consensus Hong Kong event on February 19, Zak Folkman, co-founder of World Liberty Financial (WLF), expressed his desire to bring back the initial coin offerings (ICOs) model, emphasising the need to “make ICOs great again.” During a panel discussion with Tron founder Justin Sun, the two discussed various pressing issues within the crypto space, including the rise of decentralised finance (DeFi), the regulation of meme coins, and the growing influence of venture capital in the industry.
Folkman voiced his concerns over the dominance of venture capitalists (VCs) in the crypto space, arguing that platforms like WLF are often sidelined by VCs who engineer market conditions to ensure their own success. “What they want to do is they want to engineer everything so that they win. And even if it’s at the expense of somebody else,” Folkman said, criticizing the market manipulation tactics that contribute to a loss of trust in crypto. He recalled how ICOs, in the past, were a more inclusive space, offering equal access to everyone. He called for a return to that inclusive ethos, stating, “Back in the day, ICOs were good. People were able to get involved in projects, and everyone had access to the same thing.”
The conversation also touched on meme coins, which have become a major source of controversy within the crypto community. Folkman criticised the lack of regulation surrounding meme coins, highlighting the financial devastation caused by failed projects. He pointed out the large number of Twitter users who have voiced their frustrations over losing life savings in meme coins that were abandoned or “rug-pulled.” He urged the need for clear and consistent regulations to protect investors, asking, “How many people are on Twitter right now complaining that they lost their life savings on a meme coin that got rugged?”
While Folkman expressed skepticism about the current state of meme coins, Tron’s Justin Sun remained more optimistic, calling memes “the future of crypto.” However, Sun agreed with Folkman on the need to address how meme coins are launched, acknowledging that many coins see their market cap spike at launch before eventually collapsing. “Most meme coins we’ve seen in the market today have a high market cap at launch and then go to zero,” Sun said, noting that this volatile nature causes investors to lose faith once the value plummets.
Both Folkman and Sun shared concerns about the involvement of VCs in the crypto space, with Folkman warning that allowing venture capitalists to invest in projects inaccessible to the general public undermines the core principles of crypto. For Folkman, the essence of crypto lies in democratising access and ensuring that everyone has an equal opportunity. He stressed that the system must be fair and transparent for all participants.
As the discussion wrapped up, both Folkman and Sun agreed that proper regulation of meme coins is essential to avoid the pitfalls of the past, such as scams and rug pulls. While Folkman pushed for the return of ICOs to their former glory, Sun’s focus was on ensuring the future of meme coins was built on a stable, trustworthy foundation that could foster long-term growth for the industry.
