Binance: “ICO-Bubble Burst Does Good For Industry”
June 6, 2018
Binance Labs head Ella Zhang believes, if ICO bubble collapses, the whole industry will profit on it.
Zhang who joined Binace less than two months ago said that despite the market is staying the course due to constant inflow of new users, only popping of the ICO bubble will give full play to truly effective projects:
“We’d like the bubble to break. 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.”
In addition, Zhang said she helps Binance in coping with scams via the so called Cryptocurrency Governance Initiatives or CGI. The purpose of the initiatives is struggle against frauds and shit-coins as well as crypto- and blockchain-technologies.
Within the following 3-5 years Binance Labs plans investing $1 billion into prolific projects while average investment volume varying from 1 to 10 million dollars. There are 20 crypto funds Binance wants to collaborate with in the framework of the new venture capital fund. All the involved funds will have to join CGI.
Ella Zhang is not he first expert to predict the bubble burst. In April Robert Shiller, Nobel Prize winner in economics, noted, although Bitcoin may turn to be a bubble, this does not mean it is going to pop and vanish. As to Shiller, to some extent Bitcoin owes its success to political turbulences as people do not trust governments and make investments into cryptocurrencies.