A new wave of Initial Coin Offerings (ICOs) may soon shake up global finance. According to Matt Hougan, Chief Investment Officer at Bitwise, the ICO model—despite its controversial past—is poised for a major comeback in 2026. In a note shared with Bitwise clients, Hougan stated that ICO fundraising will once again become one of the dominant trends in the crypto market, potentially redefining how capital is raised in the digital economy.
ICOs Set to Outperform IPOs
Hougan’s bold prediction comes as Coinbase prepares to launch a new capital-raising platform designed specifically for vetted crypto projects. The move could trigger a renewed wave of blockchain-based funding, this time with better structure, oversight, and transparency than the chaotic ICO boom of 2017–2018. Back then, billions were raised by startups issuing tokens directly to investors, often bypassing traditional financial intermediaries.
While the early ICOs were plagued by scams, failed projects, and lack of regulation, Hougan argues that the core idea of decentralized capital raising remains highly efficient. Compared to traditional Initial Public Offerings (IPOs), ICOs offer simpler, faster, and cheaper access to funding—without the heavy regulatory burden or costly intermediaries typical of Wall Street processes.
He emphasizes that ICOs enable a fairer distribution of assets and democratize participation in early-stage investments. “Even with all its flaws,” Hougan notes, “the ICO model proved that blockchain technology could serve as a revolutionary vehicle for capital formation.”
Why 2026 Could Be the Turning Point
The timing of this anticipated resurgence is not accidental. Coinbase’s new fundraising platform aims to list only verified and compliant projects, effectively solving one of the biggest challenges of early ICOs: lack of credibility. By implementing robust due diligence, regulatory alignment, and KYC/AML protocols, Coinbase could reintroduce ICOs as a legitimate, trusted financial tool.
Moreover, regulatory attitudes are evolving. Paul Atkins, current chairman of the U.S. Securities and Exchange Commission (SEC), has recognized the potential of token-based fundraising as part of Project Crypto, an initiative exploring how blockchain can be safely integrated into capital markets. Atkins has previously spoken about creating a transparent framework for ICOs, enabling both investors and innovators to benefit from the technology without facing unmanageable risks.
Hougan predicts that by 2026, the market could witness several large-scale ICOs exceeding $1 billion each, marking the return of tokenized fundraising to the mainstream. While these numbers are modest compared to IPO volumes, their symbolic importance would be huge—signaling that crypto-native financial mechanisms are maturing into serious alternatives to traditional equity markets.
The Evolution of Crypto Capital Formation
Hougan’s analysis ties into a broader view of the digital asset market. He believes that Bitcoin will soon be as widely accepted as gold, while U.S. dollar-backed stablecoins could gradually replace fiat currencies in many global use cases. In this context, ICOs could act as the missing link between traditional finance (TradFi) and decentralized finance (DeFi), empowering startups to raise funds directly from the community without intermediaries.
As the blockchain industry evolves, ICOs are likely to be safer, more transparent, and institutionally backed. With Coinbase leading the way and regulatory bodies taking a more constructive approach, investors could soon experience an entirely new generation of compliant, trustworthy token offerings.
Conclusion
The predicted ICO revival in 2026 could redefine global fundraising, bridging the gap between crypto innovation and traditional finance. If Coinbase’s platform succeeds and regulators like the SEC establish clear frameworks, ICOs may finally fulfill their early promise—decentralized, efficient, and inclusive access to capital.
For investors and startups alike, this could mark the start of a new financial paradigm, where blockchain-powered fundraising becomes as common—and as credible—as the IPOs of today.
