The head of the venture unit Binance Ella Zhang (Ella Zhang) said that the current market ICO is in the bladder. Head of incubator Binance Labs believes that the collapse of this bubble will go to the market to benefit.
One of the world’s largest cryptocurrency exchanges Binance previously announced the launch of the Foundation’s Social Impact Fund with assets of $1 billion to support the blockchain startups. Responsible for the investment will be Binance Labs team consisting of two people.
“We would like to have the bubble burst. We continue to see a lot of hype in the market, valuations are high and unjustified. We really think that if the bubble bursts, it’s good for the industry,” said Zhang.
According to her, the bull market is good because it attracts more users. But really good projects will appear after the disappearance of the bubble, she said.
Raising funds through ICO in months. Source: ICO-Tracker CoinDesk
Binance Labs plans to invest in the blockchain projects through Social Impact Fund $1 billion of profit Binance for the next 3-5 years, with an average investment will range from $1 to $10 million the Fund has already made four investments in tokens and shares of the two companies, these investments are treated as long-term, said Zhang.
Join Binance two months ago, Zhang also said that helps the exchange with its management initiative cryptocurrency (CGI). Next week should earn the project site.
“Its main purpose is to fight against Scam and fraudulent tokens, as well as to stimulate crypto and blockchain technology,” she said.
We will remind that earlier the WSJ study showed that about 20% of ICO cause suspicion in scame or fraud. And experts from research institutions of China estimated that the blockchain projects live an average of 15 months.