"ICOs are necessary and 100 times better than venture capital funds," said the CEO of Binance
Binance Exchange CEO Changpeng Zhao said in a blog post on May 7 that "ICOs are not only good but necessary" because they work better than venture capital funds, despite the high possibility of failure.
"I would say that raising money through ICO is approximately 100 times easier than through traditional venture capital (VC), but more."
Zhao said that although some venture capitalists are true experts in their field, the vast majority of "professional VCs" have no "idea" of the projects or fields in which they invest.
According to Zhao, there is a notable absence of initial experience and insufficient understanding of plan technologies. Although the ICO market is still in its infancy and faces problems such as frauds and scams, "compared to traditional VC projects invested, a greater proportion of projects based on ICO will be successful".
Later, he writes :
"Most ICOs are new projects and have a high failure rate, just like in the new traditional companies. This is nothing new. Most ICO investors already know this. ICO investors are the first to adopt. "
Zhao concluded by mentioning that many VC groups are now investing in ICO. He said that venture capital groups "have their nose in the money," adding that they are more "agile" than other large organizations that are responsible for public wealth.
Zhao ends his publication by saying :
"The fastest engines will get exponential benefits. Do not stay behind. "