IEO become the newest trend in financing in the world of digital assets, and Binance has become a leader in this area. Changpeng Zhao posing as CZ, co-founder and Executive Director of the largest cryptocurrency exchanges in the world, commented on this emerging process.

1. What proportion of the company now holds IEO, how would like to increase their involvement and how fast?

CZ: Our goal is to help good projects. We have no concrete targets for how quickly we need to grow and expand. We’ll just help good projects as their location.

Yet we run about one project per month. From January till today on Binance Launchpad was conducted 3 round of sales for promising startups Celer Network (approximately $ 4 million at BNB), Fetch ($6 million at BNB) and BitTorrent (7 million in BNB and TRX).

2. In your opinion, how can grow the market IEO?

CZ: I’m sure fundraising is the killer feature of the blockchain. Many didn’t realize it until 2017. At ICO there are shortcomings, namely too many fraudulent schemes and “empty” projects. However, the collection of funds through the blockchain has many advantages compared with traditional venture investing. This method will not cease to exist.

I think in the future the market will be fairly large, definitely several times more than the market of venture investments.

3. IEO came up with Binance, or someone else?

CZ: No, it occurred to me that name and I’m not sure who coined this term. But now people are poorly associated Binance Launchpad and IEO. We also officially announced that Binance Launchpad is IEO. In 2017, when the ICO was popular, there was a “centralized” web sites on this subject, from which we learned this idea. Primary sales-based exchanges are not a new concept, we just changed the Fiat for cryptocurrency.

4. Why did you start to offer IEO? What are their financial benefits? What is the size of commissions that you are charged for launching IEO?

CZ: Again, our goal is to help projects in their development. This is important, because with the development of a greater number of good projects our industry will become bigger and stronger, which will positively affect all industry participants, including ourselves.

We help projects with fundraising, it’s true. But the advantages lie not only in Finance, there are a number of other serious advantages. Tell you some of them:

  • We help projects to gain popularity. Their name will be broadcasted almost the entire blockchain industry through Binance Launchpad.
  • We help projects in building user base, as many investors subsequently start to use the products of the projects. I think it is more important than the funds collected.
  • Our careful inspection and selection assist projects in forming the image. The community trusts the brand Binance.
  • Team and founders projects can focus on creating their own products, instead of spending a lot of time on the interaction with the VC, presentations, meetings with shareholders, etc.

We also share projects with expertise about ecenomic. Each project is unique, and it depends on the skills of the founders, experience, stage of development and other things. So our style of work varies with each project.

IEO also give more benefits to the investors, in particular, projects are evaluated Binance, which is a huge plus. This does not mean that each of the startups will achieve exceptional success, but we filter out outright fraud.

5. Do you think that IEO carry less legal risk than ICO? How do you plan to get around them?

CZ: Legal purity does not change depending on the type of model, whether or ICO IEO. If you release the token entitling them to a share in the company, it is a security asset (in the framework of the legislation of most countries) and you need to ensure compliance with the letter of the law. We do not make exemptions in relation to legal standards, regardless of whether we are dealing with IEO or ICO. Compliance with laws always remains our top priority, as it will strengthen our position, improve reputation and increase trust between users, regulators and other participants in the system.

6. Apparently, a large number of exchanges will compete in a niche IEO. How many competitors do you consider who they are and what it will mean for IEO market?

CZ: We do not consider the other exchanges as competitors. The fact that they repeat for us is the best confirmation of the success of the model, this is the best form of approval.

Moreover, our resources are limited, and we can find and help only a small number of good-quality projects. The more we, in conjunction with other exchanges, we will help the entrepreneurs, the better for the industry. Again, the development of the industry carries with it the positive factors for everyone. Therefore, we encourage others to use our model. However, the main idea is that they should help in developing good projects, and not to promote the fraudulent scheme.

The whole point is to help the best entrepreneurs in the industry.

The Bloomberg — 6 questions the CEO about Binance CZ IEO appeared first on crypto.by.