Former Coinbase CTO and tech visionary Balaji Srinivasan has made a bold prediction: the traditional dominance of IPOs and mergers and acquisitions (M&A) in the tech world could be fading, paving the way for a new crypto-driven era.
In a recent social media post, Srinivasan highlighted the growing challenges startups face in today’s regulatory environment. He pointed out that stricter policies are making it harder for young companies to go public or pursue M&A deals. At the same time, these regulations are opening the door to a promising alternative—equity-backed security tokens sold online.
The End of an Era?
Srinivasan attributes this potential shift to the current administration’s stance on Big Tech. With growing concerns over monopolistic practices, anti-M&A policies have become more prominent. While intended to curb the power of tech giants, these policies are also creating roadblocks for smaller startups looking to raise capital or merge with larger players.
However, Srinivasan sees opportunity in what he calls the “crypto era.” He predicts that startups will increasingly turn to security token offerings (STOs) as a way to raise funds. Unlike traditional IPOs, STOs operate on blockchain technology, offering a decentralized, accessible approach to capital markets.
A Democratized Future
This shift, Srinivasan argues, could democratize funding. By leveraging blockchains, startups could bypass the gatekeepers of traditional finance and tap into global, Internet-scale markets. Smaller entities, often overshadowed by larger competitors, would have the chance to thrive in this new decentralized financial ecosystem.
Srinivasan believes this transformation is more than just a workaround—it’s a fundamental change in how tech companies operate. “Blockchains could become the new foundation for tech startups,” he stated, emphasizing their potential to reimagine capital markets on a global scale.
A New Path Forward
While the crypto era is still in its early stages, Srinivasan’s prediction has sparked conversations about the future of tech financing. If his vision proves correct, the days of IPOs and M&A as the default paths to growth may soon be behind us. In their place, blockchain technology could unlock new possibilities, redefining how innovation is funded and scaled.
As the tech world watches this evolution, one thing is clear: the rules of the game are changing. And for Srinivasan, the future lies firmly in the hands of crypto.
