Binance CEO, Changpeng Zhao has revealed his thoughts and opinions on Initial Exchange Offerings (IEO) in an interview with Bloomberg. CZ is well versed on the topic following the huge success of his companies own IEO, the Binance Launchpad.
Token platforms have quickly become a popular commodity with various major companies and exchanges setting up their own versions. CZ does not see it as a competition, rather his vision seems to be purer and a community driven sentiment. He said:
“The goal here is to help good projects. There are no specific targets on how quickly we have to grow or expand. We will just help good projects raise funds as we find them.”
Binance has certainly helped the tokens listed on the Launchpad. The sales have been a roaring success, with records being broken and many alternative coins boosted in the market.
Since the start of the year, Binance Launchpad has conducted three token sales to date, for promising blockchain startups including: Celer Network (about $4 million in BNB), Fetch ($6 million in BNB) and BitTorrent ($7 million in BNB and TRX).
Although he may not accept the term being used for Binance Launchpad, CZ, views IEO’s as the future for fundraising in the blockchain community. He spoke on the future of projects like this and said:
“There are drawbacks with ICOs, namely too many scams and “empty” projects. But blockchain fundraising has many advantages over traditional VC fundraising. It will not go away… I think it will get pretty big, definitely many times bigger than the VC industry in the future.”
On the various exchanges that have latched on to the trend of IEOs, like Huobi Prime and others, CZ claimed, “We don’t view them as competition. Other exchanges copying us is a strong validation of our model and the highest form of compliment.” In fact, he appeared to suggest that this was a good thing and something he encouraged:
“More importantly, we have limited bandwidth and are only able to find/help a small number of all good projects out there…when the industry gets bigger, everyone benefits. For this reason, we encourage others to copy our model,” he added, “It’s all about helping the best entrepreneurs and growing the industry. ”