Business 6 June 2018Erik Gibbs
Binance exec: If ICO bubble bursts, it’s a good thing for industry
There’s almost constant talk about cryptocurrency being in a bubble and how, at some point the bubble has to burst. While the opinion isn’t shared by the majority, there is one particular subset of cryptocurrency that could be experiencing a bubble. Initial coin offerings (ICO) are potentially part of an expanding bubble now, but its bursting would be a good thing for the cryptocurrency industry.
Ella Zhang, who heads up Binance Labs, told Bloomberg that if the ICO bubble bursts, “it’s a good thing for the industry.” Zhang, who has been with Binance for less than two months, indicated that the market continues to be positive, despite declines in trading, thanks to a steady influx of new customers to the cryptocurrency space.
However, she pointed out that ICOs are damaging to the integrity of the industry, saying, “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 taking the bull by the horns at Binance, helping the exchange combat scams that have sprouted due to the industry hype. She has helped to create the Cryptocurrency Governance Initiatives (CGI) that are designed to “fight scams and sh*t coins, and to boost crypto and blockchain technology.”
Through CGI, Binance supports funds and tokens that it works with only if they promise not to participate in pump-and-dump schemes. They also have to adhere to the descriptions provided in their white papers. If they don’t honor their commitments, Binance will pull funding and delist tokens.
As reported on Monday, Binance has launched a serious $1-billion fund to invest in cryptocurrency and blockchain products. The fund will see projects receive anywhere from $1 million to $10 million and was created in conjunction with 20 different funds from its partners. All new projects are required to join CGI.
Zhang came to Binance by way of Kleiner Perkins Caulfield & Byers, a venture firm where she served as an investment director. Zhang explained, “If we see founders contribute to both sides, we’ll hold both sides. Sometime it’s hard to see which one is more valuable, but our position is to support the founders and create value for the project as a whole.”
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
Business 32 minutes ago
New York takes down dark web ring linked to crypto-related laundering
The Manhattan District Attorney has indicted three individuals who were found to have been selling counterfeit drugs on the dark web and using Bitcoin Core (BTC) to launder over $2.3 million.
Business 44 minutes ago
Russia’s secret service tried to bribe Bitcoin Core out of media mogul
While Russia’s elite is apparently busy buying billions of dollars in cryptocurrency, some other Russians decided to try and get theirs the old-fashioned way – stealing it.
Business 1 hour ago
Coinnest exchange shuts down after a series of embarrassing incidents
This will come as an absolute shock to about zero people. The Coinnest cryptocurrency exchange, the fifth-largest in South Korea, has closed its doors.