Rodrigo Coelho, Chief Executive Officer at Edge & Node, said that with improved regulatory clarity, token-based decentralized fundraising could lower the barrier to entry for entrepreneurs globally. The statement was made during a podcast appearance on March 24.
"If regulation allowed it, a founder could raise money by issuing tokens to supporters," said Coelho, according to YouTube. "As the project generates revenue, those token holders get a share. It's like an IPO meets Web3."
According to Reuters, on March 21, 2025, the U.S. Securities and Exchange Commission (SEC) hosted its inaugural public meeting of the crypto task force to discuss the applicability of securities laws to digital assets. This initiative, led by SEC Commissioner Hester Peirce, signifies a potential shift in regulatory approach towards cryptocurrencies and token-based fundraising. The task force is exploring whether crypto tokens require new regulatory frameworks distinct from traditional securities.
ICObench reports that between 2017 and 2020, Initial Coin Offerings (ICOs) delivered over 3.5 times more capital for blockchain-based startups than traditional venture capital rounds. This highlights the significant impact token-based fundraising has had on the blockchain industry, demonstrating its potential to surpass conventional funding methods in certain periods.
According to Fenwick & West LLP's publication "Tokenized Real-World Assets: Pathways to SEC Registration," tokenization enhances the ability to fractionalize high-cost assets, thereby democratizing potential financial investments to a broader community. By converting physical assets into digital tokens, investors can own fractions of traditionally expensive assets like real estate or art, making these investments more accessible. This approach not only lowers the barrier to entry for a wider range of investors but also introduces greater liquidity into markets that have historically been illiquid.
Coelho is the Chief Executive Officer at Edge & Node, a core development team behind The Graph, a decentralized protocol for indexing and querying blockchain data. With a background in engineering and entrepreneurship, Coelho has been instrumental in advancing decentralized technologies and promoting open data access within the blockchain ecosystem.
Edge & Node is a development team behind The Graph, a decentralized protocol that enables efficient indexing and querying of blockchain data. Founded with the mission to support the development and adoption of decentralized applications, Edge & Node plays a pivotal role in providing the infrastructure necessary for Web3 innovation.