CEO Binance Chanpen Zhao (Changpeng Zhao) said that the collection of funds through ICO preferable to venture capital financing — despite the risk to invest in the Scam.
Yesterday, Zhao has published in his blog post titled “the ICO is not just a “nice to have” — they are necessary.” In it, he criticized the practices of the venture, stressing that “to collect money through ICO is about 100 times easier than traditional venture investors ways, if not more.”
Founder Binance convinced that “the vast majority of professional venture capitalists don’t know anything about the projects or about the industry in which to invest”.
“Many of them have no experience with startups and know nothing about the industry and the technology,” added Zhao. And although he admits that the ICO can fall or already be a planned Scam, he still believes that “compared with traditional investment projects, ICO were more likely to be successful.”
Zhao also stressed that the majority of people who invest their money in tokens, aware of the risk of failure in the long term.
“Most of the ICO’s new projects with a high probability of the predicted failures, as in the conventional start-UPS. There is nothing new. The majority of captainvalor know about it. They are the pioneers of a before accumulate knowledge,” said Zhao.
The statement is difficult to ignore because Binance is one of the largest cryptocurrency exchanges in the world. Amazing it also a little: last year, the platform held a large sale of token, abandoning the investment of venture capital company Sequoia. The latter even filed for Campana in court because he allegedly had negotiations with other potential investors.
In conclusion, the CEO Binance said:
“The fastest will increase your income exponentially. No need to fall behind”.
Confidence Zhao to ICO is manifested not only in words. After the success of last year Binance again will lead the fundraising for the startup. This time support Binance Labs received MobileCoin; the upper limit is set at $30 million, the exact date is not yet known.