Being in charge of funding $1 billion in businesses based on blockchain technology, Ila Zhang does not have a positive attitude towards the market. Zhang joined the exchange two months ago to head its venture incubator named Binance Labs. She said, “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.”
She added that the market is attracting more users and boosting its bullish nature but once the crypto bubble bursts only the deserving projects will emerge. Although she did not speculate about the time, she says it will happen. Until now, Initial Coin Offerings have been able to raise more than $9 billion in 2017.
By volume, it has become the biggest crypto trading exchange after cashing in the boom of December 2017. Currently, it offers more than a dozen virtual coins on its platform.
Zhang is an ex-employee of Alphabet Inc. and a graduate from Stanford University business school. She said that Binance is trying to solve the issues created by frauds in the crypto space while complying with Cryptocurrency Governance Initiatives, or CGI. Initiative’s website is scheduled for a launch next week.
The investor added, “The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology.” Binance is trying to encourage token teams to provide their efforts in the initiative. Fund managers are advised to avoid pump and dump schemes and projects will have to work according to the details of their white paper.
The company will take strict actions against teams who break their commitments. In a telephonic interview from Beijing, Zhang said that it expects the 20 digital currency funds part of the new $1 billion fund to join CGI. The company has planned to use the $1 billion fund in the coming three to five years. The average investment will range from $1 million to $10 million. Till now four investments have been made with long-term plans in effect.
The exchange is focusing on companies that aim to solve issues in blockchain technology. However, some venture capitalists are still confused between investing in equity and tokens. Zhang, who also served as a director in Kleiner Perkins Caufield & Byers, a venture firm, for four years, believes that equity and tokens are valued separately.
She concluded, “If we see founders contribute to both sides, we’ll hold both sides. Sometimes it’s hard to see which one is more valuable, but our position is to support the founders and create value for the project as a whole.”
It should be noted that Binance coin saw an instant rise in its prices a few days ago to $16 but came down back again below $15. Market experts predict that the coins will undergo a steady and gradual rise in values. It is being hoped that the company will be guiding other projects towards more compliance with government regulations.…