Lost Midas
@lostmidas
Rethinking public markets: How onchain capital formation can replace the IPO For over a century, IPOs have been the pinnacle of corporate finance But for SMEs, they’re a structural nightmare: - High costs - Regulatory red tape - Opaque gatekeeping The system isn’t broken It’s just designed for incumbents
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Lost Midas
@lostmidas
While everything else went digital, capital formation stayed archaic Decades behind software’s composable, global design A new model is emerging: Onchain capital formation No roadshows No underwriters Just onchain contracts & global liquidity
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Lost Midas
@lostmidas
Onchain capital formation reimagines fundraising: - Lower costs - Transparent price discovery - Community-aligned incentives It’s leaner, faster, & built for the internet era Here’s how it solves the IPO problem
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Lost Midas
@lostmidas
Problem: IPO structural burdens - Takes 6–24 months of legal & regulatory hoop-jumping - SMEs with small teams & tight resources can’t afford this Onchain solution: Launches take minutes, not months Gas fees > underwriters
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Lost Midas
@lostmidas
Problem: IPO costs Issuing public shares routinely costs $1–3M Roadshows, filings, compliance, it all adds up Onchain solution: Contract deployment costs pennies, not millions Capital goes directly to builders, not intermediaries
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Lost Midas
@lostmidas
Problem: IPOs limit access - Institutions get priority - Retail investors stuck buying inflated valuations Onchain solution: Permissionless participation Anyone with internet access can support early It’s aligned with users, not just yield-seeking institutions
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Lost Midas
@lostmidas
Problem: Outdated market structure IPOs rely on centralized price setting & insider allocations Onchain solution: - Real-time price discovery via dynamic bonding curves - Composable liquidity governed by onchain contracts - Transparent ownership A trustless system from day one
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Lost Midas
@lostmidas
Beyond just raising capital, onchain primitives embed: - Flexible rewards (e.g., staking, usage incentives) - Community governance - Revenue sharing for supporters It’s participatory capital formation, not extractive
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