As recent events have shown, not all controllers support ICO. In particular, the ICO is actively fighting the illegal U.S. presence, while South Korea and China imposed a ban on them. As for other countries, many have not yet decided how to regulate this industry. However, the CEO Binance Changpeng Zhao believes that the ICO is simply necessary for development as promising projects and the economy as a whole.

According to Zhao, despite the General tightening of regulation, the ICO are still much more affordable than traditional venture capital investment. If you compare the ICO with venture capital, raising funds through the virtual tokens is much less of a problem for organizers and potential investors.

Entrepreneurs this method is advantageous, because it allows you to avoid many of the barriers associated with funding. The ICO can take part, anyone, if permitted by local law. In addition, the demonstration of its technology around the world is very different from the situation when you are applying for an investment to a handful of people, the solution of which depends on the further development of your project.

Zhao offers to compare the tedious process of promoting your product among venture capital firms, which may take up to 6 months and at the end to bring the organizers about $150 000 investment, with the writing of the white paper for the dream project, through which startups can raise $20 million in just 10 days with the participation of thousands of people from around the world.

This business model allows you to reap the benefits and the investors. Investing in a traditional company are carried out through venture capital, where the majority of consumers, the entrance is closed. But the use of ICO common man much easier to contribute to a promising project. While investors are responsible for all risks of their choice, they can also determine what amount they want to spend.

CEO Binance recognizes that venture capital firms also invest in the ICO. This is one of the most significant achievements of the ICO market the last few months. One who will rush into the industry first will get first-mover advantage. But the problems and concerns associated with this business model, you need to consider in advance.

Zhao drew attention to the problem of fraud in the industry. As an analogy he cites the example calls and SMS using which attackers try to convince the victim to send them money, but it does not ban phones or banks. Similarly, you must act and industry-ICO, he said, using her time-tested standards.

In a separate statement published on Monday, Zhao said that in the near future Binance may oblige crypto-currency projects, willing to spend listing your tokens on the exchange, to report on their direct and indirect relationships with venture capital company Sequoia Capital.

He did not specify the consequences of any such projects on Binance, but it is clear that the new requirement is related to litigation between the CEO quickly achieved recognition of cryptocurrency startups and venture capital company.

Earlier, Sequoia Capital filed for Zhao to court due to the fact that she failed to buy a stake in the crypto company in a special rights, than it was carried out in August last year. Later it became known that Zhao does not recognize his guilt, and the Hong Kong court ordered Sequoia to reimburse all costs incurred by the defendant in connection with the proceedings.