Ella Zhang, the head of Binance venture incubator, Binance Labs, said that in spite of the positivity surrounding the crypto bull market, the most good would come when the ICO bubble eventually bursts.
Speaking to Bloomberg, Zhang who joined the venture fund less than two months back was quoted as saying:
“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.”
At the moment, Initial Coin Offerings (ICOs) which have taken place in 2018 have already surpassed the 2017 total having raised more than $9 billion since the start of the year.
Exchange platform Binance has been among the biggest gainers from this upsurge as it is currently ranked as the top crypto exchange globally by trading volume, based on Coinmarketcap data.
Conditional Support for Crypto Funds
Zhang, who graduated from Stanford University’s business school and was formerly an employee of Alphabet Inc, is in charge of a $1 billion fund which is set to be invested in blockchain-related businesses.
She also said that she is assisting the exchange in fighting the scams that have resulted from the ICO hype through a new initiative known as the Cryptocurrency Governance Initiatives (CGI).
“The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology,” she explained.
Under this Binance Labs initiative, the exchange plans to offer support for various crypto funds and token teams it will be working with on condition they do not participate in pump and dump schemes. They also need to carry out their projects as set out in their white papers.
Failure to meet these criteria will disqualify the project in question from getting any further support from Binance and their tokens will also be delisted from the exchange.