Binance’s CEO Foresees a Bright Future for ICO Market

There is a lot of noise around the future of the ICOs. Some believe that it is a positive trend, while others consider it as a overvalued market. Hopefully, Changpeng Zhao, the CEO of Binance has the opinion that this market is necessary.

With some exceptions like Switzerland and Malta, most of the regulators apparently are not pro-ICO. More precisely, is actively cracking down on illicit offerings, while South Korean and Chinese governments imposed strict policies on ICOs. There are those that are still trying to figure out how to tackle this issue. Binance CEO, however, is convinced that ICOs are here to stay and are necessary to boot.

The intense regulatory pressure gives this statement a significant notion. It is a fact that there are a growing number of scams in the market and without regulation initial coin offerings will always have a shady side to them. An appropriate regulatory framework will automatically bring legitimacy to the industry. Zhao agrees that some things will need to alter shortly. However, the business model remains a more than viable one.

According to Zhao, the way of fundraising of an ICO is still more accessible in comparison to regulator means of raising funds. Compared t0o traditional VCs, there is very little friction and problems to contend with. However, some projects do their best to follow the most of the traditional guidelines, despite the lack of active regulation, showing that there is a genuine interest in further legitimizing this industry.

The benefits of ICOs are multiple and attractive. Entrepreneurs can gain a competitive advantage by skipping a lot of “fluff” regarding raising money. Also, anyone in the world can participate in an ICO assuming its local government allows for it. Additionally, writing a whitepaper and showcasing technology in front of the whole world is much more beneficial than dealing with a small number of potential investors. ,

Also, investors can reap the benefits from this particular business model. As traditional investing happens only through investing in VOCs, this makes such investments off-limits for the most costumers. On the other hand, with an ICO, it’s much easier to contribute money to potentially profitable projects. While investors bear the full risks of their choices, they can also define the amount to be contributed. The options are limitless.

The Binance CEO acknowledges that VCs are also investing in ICOs. This is the most remarkable development of the past few months. Large VC groups have shown interest in initial coin offerings for some time now. Those who tackle this industry head-on can benefit from a first-mover advantage. Consequently, the issues regarding the business model need to be addressed head-on as well.

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