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Raising Money through ICO is 100 Times Easier than VCs: Binance CEO

“ICOs are not just good to have, but necessary” said Changpen Zhao

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Changpen Zhao, CEO of Binance has said that Raising Money through ICO is 100 Times Easier than through traditional venture capitalists. In his latest blog, the CEO said “ICOs are not just good to have, but necessary”. However, there is more risk associated while trading for ICOs but the risk is worth taking.

Also Read: Bill Gates Vows to short Bitcoin if he could

He says there are more options to invest in ICOs

Hundred of new startups are coming to surface on a weekly basis. The rate is encouraging in favor of the ICOs where traders have multiple choices to invest their fortune. Few startups don’t allow you to participate in the ICOs while others are open to everyone. However, the ones allowing the traders to participate in the ICO have more potential to grow and perform well in the exchanges.

Raising Money through ICO is 100 Times Easier than VCs: Binance CEO

Also Read: Iranian Traders send $2.5 Billion to Iran to bypass central bank’s ban

Why he calls investing in VCs less favorable

He says that there are expert Venture Capital traders around but they are clueless about where they are investing. They also can’t evaluate or analyse the potentional of their investment since there is very little information available to calculate the potential. Its more of a gamble when you don’t know the roadmap, business model and objectives before putting your hard earned money into it. He preferences ICOs even though it is facing harsh bans from the regulatory bodies and technology giants have strictly moved against it. Furthermore, there are risks of fraud and scams which are threatening. Despite all these negativities, the probability of the success of an ICO is higher than its competitor.

Even the VC groups are investing in the ICOs

In support of his argument, the CEO adds “Most ICOs are new startup projects, and have a high rate of failure, just like in traditional startups. This is nothing new. Most ICO investors already know this. ICO investors are early adopters”

He reveals that there are many VC groups that are investing in the ICOs because they see it more rewarding. At the end of his blog, he urges the traders to be early adopters to get maximum benefit and don’t get left behind making unnecessary inquiries.

What is an ICO

ICO is Initial Coin Offering which is introduced for the purpose of raising money that is used in developing the business model represented by the ICO. Initially, the project owners run out of money and they have to offer their digital currency on discounted rates. The native digital currency is available on more than 50% discount to attract more investors. Purchasing these tokens in the ICO phase becomes more rewarding before it is actually available on the exchanges.

How to remain cautious before choosing a valid ICO

You have to keep a vigilant eye because there is no regulatory body securing your investment.  The first thing you should look for is the technical standard of the token, it should be ERC20. You should also see the business model backing up the currency. The next thing to look for is the professionalism of the team by visiting their social media pages to see their previous relevant experience. ICO should also provide a road-map to gauge their seriousness about their business.

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Tanveer Ahmad

Tanveer Ahmad is an experienced writer with deep insight into a variety of niches. His prominence lies in the detailed attention he puts to unveil the hidden aspects of his subject. His analytical approach to bring to the surface the futuristic possibilities of anything he writes about, especially on cryptocurrencies and politics are commendable. He eagerly wants a space to write about anything that could help humans develop positiveness in their behavior and to fine-tune their thought process to become an ambassador of peace, harmony, and love.

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