CEO of Binance Labs: “It’s a Good Thing if the ICO Bubble Bursts”
“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,” said Zhang.
The former Alphabet Inc. employee’s comments come less than a week after Binance Labs’ made their first ‘public appearance’ in a video conference with more than 600 institutional investors. The presentation included the first details on Binance Labs’ future plans and the effect they would like to have on the cryptocurrency industry.
Cryptocurrency Governance Initiative (CGI)
The first program Zhang and company described is called the Cryptocurrency Governance Initiatives, or CGI. According to Zhang, CGI is a response to the bullish market and mindless hype referenced in her quotes above.
“The main purpose of [CGI] is to fight scams and sh*t coins, and to boost crypto and blockchain technology,” said Zhang.
Specific details on what CGI entails are still sparse, but it appears to be a set of standards that investment funds and ICOs will be “encouraged” to adhere to while working with Binance Labs. These standards include formal agreements that they will not “participate in pump and dump” schemes and that they will actually create products according to their white papers.
Failure to meet these standards will result in termination of their partnerships with Binance Labs.
Community Influence Fund and Binance Ecosystem Fund
Speaking of investments, the presentation also revealed that Binance Labs will be setting up a $1 billion investment fund called the Community Influence Fund. In addition, they will be starting a separate investment pool with 20 “future partners” called the Binance Ecosystem Fund.
Partners in the fund will be given priority in recommending new projects to Binance Labs.
Entities interested in joining the fund will have to meet certain criteria to be eligible for consideration. The specific eligibility requirements and application portal are expected to be released sometime in the coming weeks or months. All investments in the Binance Ecosystem Fund will have to be made in Binance Coin (BNB).
Users who want to know more about Binance Labs are encouraged to participate in their upcoming AMA on Reddit scheduled for June 6, 5-8 PM EST.
Matthew Godshall is the editor in chief at Unhashed.com. A graduate of Wesleyan University, Matthew hopes to turn Unhashed into the Internet’s premiere site for cryptocurrency resources.