Hey there, meme token enthusiasts and blockchain buffs! If you’ve been scrolling through X lately, you might have stumbled across a hot take from @FrankieIsLost that’s got the crypto community buzzing. On August 2, 2025, Frankie dropped a bold statement: “onchain capital formation is a better product than traditional IPOs. as soon as one major company tries it, it'll be obvious to the rest of the world.” This single tweet sparked a lively thread of replies, and it’s got us at Meme Insider digging into what this could mean for the future of fundraising. Let’s break it down!

What’s Onchain Capital Formation, Anyway?

For those new to the game, “onchain capital formation” refers to raising money for a company or project using blockchain technology. Instead of going through the traditional initial public offering (IPO) process—where banks and brokers handle everything—companies can issue digital tokens or assets directly on a blockchain. Think of it like crowdfunding, but with the transparency and security of a decentralized ledger. It’s a hot topic in the Web3 space, and Frankie’s tweet suggests it could disrupt the old-school financial world.

Why Onchain Might Beat IPOs

Frankie’s not alone in this thinking. Several X users chimed in with reasons why onchain capital formation could take the crown. For starters, it offers better price discovery—the process of figuring out what something’s really worth. Unlike IPOs, where prices are often set by underwriters (who might not always get it right), onchain methods let the market decide in real-time. @SmokeyTheBera even called it an area where “crypto objectively excels.”

Another perk? Companies could keep more of the pie. Traditional IPOs come with hefty fees for banks and intermediaries, but onchain processes cut out the middlemen. @Navren pointed out that “companies will print on trading fees and leave less money on the table.” Plus, it’s global—@Fra_mosterts highlighted how this could be a game-changer for mid-cap companies in Europe, where stock markets are less centralized.

The Catch: It’s Not Quite There Yet

But it’s not all smooth sailing. Some skeptics, like @Web3Dhan, questioned whether the average person has the know-how to evaluate onchain offerings, calling Frankie’s take “more wrong.” Fair point—IPOs have a structured process with regulators overseeing things, while onchain methods are still wild and unregulated. Others, like @Stp_0ne, noted that more institutions need to adopt blockchain before it can replace IPOs entirely.

So, what’s the tipping point? @Sam__hatem asked a key question: “What incentive flips the switch for the first major [company] to ditch IPO rails for onchain?” Maybe it’s the promise of lower costs, faster execution, or the hype around tokenized assets—something Pantera Capital predicts will pull “the center of gravity for price discovery, capital formation, and liquidity away from Wall Street’s ancient pipes.”

The Domino Effect

Frankie’s prediction hinges on that first mover. If a big-name company—like a tech giant or a fintech darling—goes onchain, it could trigger a domino effect. @Oluakachii summed it up: “all it takes is one corp to go onchain… after that? floodgates.” Imagine the buzz if a company like Coinbase (already in the S&P 500) or Circle (up 7.3x since its IPO) took the plunge. It could legitimize onchain capital formation overnight.

What This Means for Meme Tokens and Beyond

At Meme Insider, we’re all about keeping you in the loop on blockchain trends, especially those that might impact meme tokens. While this thread isn’t directly about Dogecoin or Shiba Inu, the rise of onchain capital formation could open doors for meme token projects to raise funds more efficiently. It’s a space to watch, especially as the infrastructure matures.

So, what do you think? Is onchain capital formation the future, or are we still a few years away? Drop your thoughts in the comments, and stay tuned to Meme Insider for more deep dives into the wild world of blockchain!