Binance CEO criticizes IPOs and praises blockchain
During the recent BlockDown conference, Changpeng Zhao, founder and CEO of Binance, strongly criticized venture capital fundraising using public sales offers, known as IPOs.
No more traditional methods
During the recent BlockDown conference, Changpeng Zhao, founder and CEO of Binance, strongly criticized venture capital fundraising using public sales offers, known as IPOs. At the same time, he said he is confident in the growth of fundraising in the blockchain market in the coming years and compared it to investment cycles in other technology industries.
The crisis in the world economy induced by the expansion of the COVID-19 pandemic significantly affected the cryptocurrency market, however, despite the recent downturn, Zhao is convinced that cryptocurrency fundraising will increase in the coming years. and added: "I think [the] number of blockchain fundraising activities and the funds raised will continue to increase year by year for the next 10 [to] 20 years". Zhao explained that it is the first time in history that fundraisers have been carried out in a totally decentralized way thanks to the use of blockchain technology. CZ is very optimistic about the future of blockchain technology and cryptocurrencies and believes that traditional fundraising methods are easily manipulated by those who know how it works, which causes serious harm to investors. Zhao explained how traditional fundraising methods work: "Institutional investors get paid, the CEO gets a big bonus, the retailers take the responsibility, and then the company [becomes] a really big public company, and the CEO takes big packages and then he leaves, and then the government has to rescue them."
Despite being optimistic in the long term, Zhao believes that in this time of global uncertainty it is really very difficult to raise money: most investors prefer to retain their cash savings while waiting for prices to drop enough to buy assets. "in offer". Zhao explains that: "Now, we are definitely an economically difficult market (...) There is a lot of uncertainty, there is a lot of volatility, there is a lot of fear. So naturally, right now, it is a really difficult time to raise money".