Ella Zhang, CEO of Binance Labs - the cryptocurrency exchange’s blockchain incubator - is looking forward to when the ICO bubble eventually bursts.
Talking to Bloomberg, the former Alphabet employee was keen to point out that the frantic flood of new ICOs needs to end for the industry to move forward:
“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.”
While the CEO sees some positives to the extreme bullishness in the ICO space in that it attracts new users, she nonetheless believes that only when the bubble bursts will the legitimately valuable projects emerge.
In this respect, Zhang is not the first industry figure to voice this sentiment. Last month, Sebastian Markowsky - director of technology investment bank GP Bullhound - despite predicting a mass wipeout for most cryptocurrencies in 2018, nonetheless said that he expected the ICO market to mature as the bar is raised sharply in the year to come.
Binance’s Investment in the Future of ICOs
With Binance recently announcing a $1 billion fund for blockchain startups, the world’s largest exchange is keen to see the industry grow sensibly.
Set to go live next week, Binance will launch the Cryptocurrency Governance Initiatives (CGI) with the aim of reducing “pump and dump” schemes and diffusing some of the problems arising from the hype surrounding the industry - as Zhang explained:
“The main purpose of this is to fight scams and sh*t coins, and to boost crypto and blockchain technology."