Changingpeng Zhao, CEO of Binance, the world’s largest crypto exchange, said that ICOs are absolutely necessary to stimulate technological development and economic growth, whether it happens or not, they are absolutely necessary.
< In a long post on
LinkedIn, Zhao said to investors, “Fast movers will reap high profits.. Don’t be left behind.”
ICOs are currently under scrutiny by the media and regulators for high-profile instances of fraud and financial mismanagement.
SEC’s Jay Clayton was elected to the U.S. Senate last December. After telling the Banking Committee, “I believe every ICO I see is a security,” the SEC drew attention to the nascent industry and subsequently claimed jurisdiction over the space.
However, according to Zhao. The ICO model is still superior to the traditional VC (venture capital) model. Central to Zhao’s argument is the ease of raising funds by issuing tokens.
Zhao argues that this is 100 times easier than dealing with VCs.
“ICO’ Let’s compare two countries that allow and don’t, ICO-friendly ones will have startups that are 100 times better funded.”
In such a case, Zhao said, “The relative pace of technological progress and economic development what will happen?” and “Which country will become wealthier over time?”
According to Zhao, ICOs; better option for countries, startups and investors. Fundraising makes a company’s leadership, especially its CEO, much more efficient so that it can focus more on its product. It benefits thousands of people around the world who will use your product as soon as it’s launched.
The flexibility of the ICO model also makes it an investment option for those who don’t want to spend millions of dollars.
Fraud and failure
The two major arguments against ICOs are fraud and high failure rate. Zhao believes these two arguments exist everywhere, in every industry.. Also, on the failure rate, Zhao points out that traditional startups often fail.. According to him, problems should be expected to arise and problems should be resolved.
Zhao:
“After all, where would the world be today if we had given up on e-commerce or the internet because of identity theft or credit card fraud? ”