Brian Armstrong, the co-founder and CEO of Coinbase, recently took to X (formerly Twitter) to highlight a major pain point in the startup world: the broken fundraising process. In a clip from his appearance on TBPN, Armstrong argues that moving capital formation onchain could fix many of these issues. For those in the meme token community, this is particularly exciting because onchain tools are already reshaping how projects launch and raise funds.

In the original post, Armstrong states: "Every entrepreneur I know thinks the fundraising process is broken." He then lists key benefits of onchain capital formation:

• It's more efficient: Traditional fundraising often drags on for months, involving endless pitch meetings and legal hurdles. Onchain methods could streamline this, allowing creators to focus on building rather than begging for bucks.
• The process is fairer for both sides: With blockchain, terms are clear and automated via smart contracts, reducing disputes and ensuring everyone plays by the same rules.
• Much more transparency: Everything is recorded on the ledger, so investors can verify details in real-time, building trust in a space that's often murky.

The accompanying video clip dives deeper. Armstrong describes the current system as "onerous," where entrepreneurs face rejection after rejection—"getting punched in the gut" by smart folks dismissing their ideas. It culminates in high legal fees and tenuous deals. But onchain? It's a game-changer. He spotlights Base, Coinbase's Ethereum Layer 2 network, which has already helped hundreds of projects raise over $200 million. And it's not limited to token sales; this could extend to various funding models.

For meme token enthusiasts, this resonates big time. Meme coins often launch via decentralized platforms like Pump.fun on Solana or DEXs on Base, where community-driven fundraising happens onchain from day one. Think about it: no more gatekeepers deciding who gets funded. Instead, anyone with a viral idea can tap into global liquidity pools, with smart contracts handling distributions fairly. This levels the playing field, especially for retail creators who might not have VC connections.

Base, in particular, has become a hotspot for meme tokens. With low fees and fast transactions, it's ideal for quick launches that capture internet hype. Armstrong's vision aligns perfectly with the meme economy, where transparency can prevent rugs and build lasting communities. As more tools emerge, we might see even more innovative ways to fund the next big dog or cat token.

Of course, not everyone's fully on board yet. One reply from Bill Gurley notes that some private companies prefer keeping data under wraps. But in the open world of crypto, transparency is often a feature, not a bug.

If you're a blockchain practitioner eyeing meme tokens, keep an eye on onchain fundraising trends. It could be the key to turning your wild idea into the next viral sensation without the traditional headaches.

What do you think—will onchain capital formation kill off old-school VC for good? Drop your thoughts in the comments!