Ella Zhang, the head of Binance Labs, told Bloomberg she was expecting the ICO bubble to burst, which would actually benefit the market.
Zhang leads Binance’s $1 billion venture fund announced last week. While she does not deny there are sound projects today, she believes that the truly good projects will surface after the bubble bursts.
“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 said in a phone interview.
However, the Binance Labs head declined to commit to a prediction on when the correction will start.
Zhang’s view of the situation mirrors attitudes to the dot-com bubble of the late 1990s. It was considered a disaster at that time, but most of the innovative projects emerged after the market decline, growing along with the good ones that survived the crash.
According to Coinschedule data, the total funds raised via initial coin offerings (ICOs) have already matched the record of the last year, vaulting above the $9 billion mark.
Source: https://www.coinschedule.com/stats.html
Binance, which was founded in 2017, has been one of the biggest winners of the ICO boom, becoming the largest crypto exchange by trading volume after offering trading solutions on dozens of tokens.
Zhang revealed she was also working with the Cryptocurrency Governance Initiatives (CGI), a new body announced last week. Involving about 600 institutions, the initiative will fight cryptocurrency and blockchain scams. It will have its website launched next week.
“The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology,” Zhang said.
She is not the only one who sees an ICO bubble. Last week, Wikipedia co-founder Jimmy Wales reportedly said:
“Right now, we are in a bubble. The crypto world is absolutely, definitely in a bubble. I don’t think there’s many people who would deny that.”
Last month, Binance CEO Changpeng Zhao said that ICOs were beneficial for national economies.
This article appeared first on Cryptovest
