Zhao Changpeng, the General Director of one of the largest cryptocurrency exchanges Binance, said that the ICO, as the funding model, far preferable to venture capital, even considering all the risks associated with fraud.
In a post that appeared on the blog on Monday, under the headline “the ICO is required!”, Chapter Binance criticized for venture capitalists, in particular, he writes that “raising money via the ICO is about 100 times simpler than using the more traditional method associated with venture capital.”
This position is the General Director of one of the largest cryptocurrency exchanges, in General, it is not surprising, considering that in 2017, the exchange issued its own tokens, and negotiations with one of the largest venture capital firms – Sequoia Capital ended the trial.
In his post, Zhao argues that “the vast majority of professional venture capitalists have no idea about the projects and / or region in which they invest”.
Many of them have zero experience of running their own projects and don’t even have a basic understanding of the technology related to the niche in which they operate.
Even despite the fact that the ICO often end in failure or even be the Scam projects, Zhao still believes that “the number of successful projects funded on the model of the ICO will be more than the traditional model of venture capital.
Moreover, he argues that most of those who invest their money in such projects are well aware that eventually they can burn.
Most ICO is a new startup projects, as in traditional startups, among them quite a lot of failed projects. This is nothing new. Most ICO investors already know this. ICO investors first users of this technology.
Those who join at the early stages – win the most. So try to keep up!