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Although Ella Zhang (Ella Zhang) is responsible for the Fund amount to $ 1 billion. US investing in blockchain of the company, it is not too optimistic about this market.

“We would like to see the bubble burst, says Zhang, which is already almost two months headed the venture incubator Binance Labs exchange platform cryptocurrency Binance. – The market is still inflated, estimates are overstated and unfounded. We really believe that if the bubble bursts, it will be a boon for the entire industry.”

Ella Zhang believes that although the rise in market prices is a positive indicator, because it attracts more users, really good projects will appear only when the bubble will burst, but it does not make any predictions about when it will happen. In 2018 the sale of digital tokens by means of primary placements of coins (ICO) has already exceeded the record amount raised for the whole of 2017, more than $ 9 billion.


The amount of capital raised for the ICO, by months, in millions of dollars. USA. (Source: CoinSchedule)

In the Wake of this boom Binance managed to grow into the largest trading volume platform for the exchange of cryptocurrency, according to CoinMarketCap. This exchange traded dozens of digital tokens.

After Asian regulators said virtual money to a real war, in March, the company Binance, founded in 2017 in Hong Kong, announced its relocation to Malta.

Zhang, a former employee of Google Inc and a graduate of the business school at Stanford University, noted that her goal is to help Binance in combating fraudulent schemes that occur one after another against the background of the cryptocurrency boom. For these purposes, will be developed so-called Initiatives cryptocurrency regulation (Cryptocurrency Governance Initiatives, CGI), a website which will be launched in the near future.

“Our primary goal – to create conditions for the development of the technology of blockchain and the fight against fraud and “setkeyname,” says Zhang, using a common epithet for projects that fleecing ignorant investors by selling them a digital token and subsequently do not fulfill their promises.

Binance would welcome participation in the initiative funds and the developers of the coin. Fund managers will have to refuse to participate in schemes such as “pump and dump” (pump and dump asset price), and the projects will have to adhere to their goals stated in the project document, said Zhang. Binance will stop investment and any cooperation with the funds in breach of its obligations, and cryptocurrency-violators will be excluded from the listing. As said Zhang in a telephone interview from Beijing, the 20 cryptocurrency funds, which Binance Labs plans to cooperate in the creation of its new Fund with a capital of $ 1 billion. USA will have to adhere to the requirements set out in Initiatives in the field of cryptocurrency regulation.

Binance Labs team consisting of seven people, plans to Finance the Fund size of 1 billion dollars. USA profits Binance for three to five years, with an average step of the investment from 1 to 10 million dollars. To date, the Fund has already invested in four tokens and the shares of companies they expect to keep for a long time, said Zhang.

Strategy Binance Labs is to invest in companies involved in the solution of problems in blockchain technology: public blackany and decentralized exchanges, which are working to improve the speed of transactions to solve the scalability and security of users ‘ funds, as well as e-wallets and payment applications, with a focus on security and privacy, currencies with a fixed exchange rate (stablon) and platform investment tokens (tokens), relevant legislative requirements.

Some venture capitalists argue that there is a conflict between investing in tokens and shares. Zhang, who for 4 years was Director of investments at venture capital company Kleiner Perkins Caufield & Byers, agrees that the tokens and promotions are different.

“If we see that the creators are making efforts for the development of both, we support both directions, says Zhang. – Sometimes difficult to understand what direction is the more valuable, but our position is to support founders and to increase the value of the project as a whole.”

Source: Bloomberg