Binance CEO Changpeng Zhao took to his LinkedIn blog to post an entry entitled “ICOs – Not Just “Good-to-Have,” But Necessary” to express his thoughts on ICOs and VCs. According to Zhao, raising money through an ICO is “100 times easier” compared to raising money through a traditional VC.
Binance is a powerhouse in the crypto space and is considered one of, if not the largest cryptocurrency exchanges in the world. The exchange had recently got into a misunderstanding with Sequoia, a U.S. based VC firm. Sequoia sued Zhao in Hong Kong, claiming that Zhao had been speaking to other investors as he was still in talks with Sequoia about a possible capital injection.
Zhao’s blog entry may look like an indirect attack on the VC firm. In said post, Zhao said:
“A vast majority of ‘professional VCs’ have no clue about the projects or field they invest in.”
While Zhao does not deny that ICOs are not perfect in the sense that they are still susceptible to failure and sometimes even frauds and scams, he still believes that they are a better alternative to traditional VCs:
“Compared to ‘traditional VC invested projects,’ a larger ratio of ICO projects will succeed.”
Zhao concluded his blog entry with a piece of advice:
“The faster movers will reap exponential benefits. Don’t get left behind.”