We are waiting for the ICO bubble to pop: Head of Binance VC Fund
The head of the recently launched USD 1 billion venture fund of Binance had said that the company expects the bubble to burst soon to make more way for the health of the much wider blockchain industry. They believe that the ICO market (Initial Coin Market) is soon to pop and is on the verge to do so.
The Head of Binance Labs, Ella Zhang had told Bloomberg earlier, “We’d like the bubble to break.” Adding that, “While the bull market — at least as far as ICOs are concerned — helps attract more interest, it also results in unreasonable valuations. We still see a lot of hype in the market, valuations are high and unreasonable. We really think if the bubble bursts, it’s a good thing for the industry.”
Despite the major concerns that one would normally have over an ICO at this point in time, Zhang has revealed, “Binance Labs has already made direct investments in four projects” adding, “the firm has no qualms about investing directly in both company equity and crypto tokens.”
ICOs in the past have raised more money than expected. In 2018, ICOs collectively raised USD 9 billion. This is more than the whole of the money that was raised in 2017.
Zhang had also stated that, “Binance, which operates what is currently the world’s highest volume cryptocurrency exchange, plans to develop a new program — called “Community Governance Initiatives” (CGI) — to help the company weed out and delist scams and other projects that do not live up to their promises.” She further explains that, “The main purpose of this is to fight scams and sh-t coins, and to boost crypto and blockchain technology.”