Ella Zhang, the head of Binance Labs in charge of investing $1 billion in blockchain-related companies said that “if the ICO bubble burst, it’s a good thing for the industry,” reported Bloomberg on June 4.
Zhang joined Binance less than two months ago and is optimistic concerning the future of cryptocurrencies.
“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.”
Zhang is convinced that good projects will emerge once the bubble bursts because the market is attracting more and more users even with the current bull market. However, she did not predict when it will happen precisely.
According to CoinMarketCap, Binance will possibly become the largest cryptocurrency exchange by trade volume and it is listing dozens of cryptocurrencies on its platform.
After regulators in Asia cracked down on cryptocurrencies, Binance decided to move its operations to Malta in an environment that is more open to blockchain and cryptocurrencies development.
Zhang is a Stanford University business school graduate and she will help Binance with its Cryptocurrency Governance Initiatives (CGI) to eliminate scams.
“The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology.”
Binance will incentivize funds and token teams to join its initiative but they will have to prove that “they won’t participate in pump and dump” schemes. Also, she added that the teams that want to collaborate with Binance will have to build the project as they are explained in their white paper.
Funds and token teams that won’t meet Binance’s requirements will be delisted and the cryptocurrency exchange will stop investing and cooperate with them.
In the next 3 to 5 years, Binance will invest $1 billion of its profit for average investment ranging between $1 million and $10 million.
Binance labs will focus on businesses that aim to solve issues in blockchain technology such as cryptocurrency exchanges working on increasing speed of transactions and wallet and payment applications focusing on security and privacy.