For the head of the Binance Labs, the euphoria is still very present in the market and the valuations are unreasonable.
Ella Zhang runs the Binance Laboratories, she also administers a billion dollar fund allocated by the exchange itself for the support and development of startups based on blockchain technology, but is not in any hurry to invest, because her visions for the near future are not positive. She says: “We’d like the bubble to break. We still see a lot of hype in the market, valuations are high and unreasonable. We really think if the bubble bursts, it’s a good thing for the industry.”
Zhang says the market is positive because it attracts more investors, but the best part will emerge after the bubble burst.
Of course, the head of Binance Labs makes no predictions about when it will break or how it will break. Token sales in ICOs have already exceeded the 2017 total with more than $9 billion raised, and we are not even mid-year.
Basically, Zhang accuses the market of being overloaded and therefore of not being able to give the right evaluation to the quality of the projects; even tokens with contained marginal utilities are appreciated, making it difficult for those who have to guide their investments to choose who to help and who not.
One of the aims of the Binance fund led by Ella Zhang is to combat the opacity and inefficiency of the market, eliminating all those elements that pollute it.
Zheng adds: “The main purpose of this is to fight scams and sh*t coins and to boost crypto and blockchain technology.”
This is a necessary cleaning operation for those who seriously want to invest in the virtual currency sector which, until now, the market has not been able to carry out: in fact, despite the fall in cryptocurrency prices, ICOs have not stopped launching.