Lead Of Binance Labs, Ella Zhang, Believes “Bubble Burst” Is Good For Crypto Market
Ella Zhang, who recently joined Binance’s new venture, Binance Labs, believes that the hype surrounding the crypto market needs to come to an end, and the only way that will happen is, “if the bubble bursts.”
While many investors are yearning for the bull market, which is a time in which both share prices and user participation increases, Ella Zhang views it as a hindrance that barely separates the strong projects from the weak. She, like many crypto fanatics, is waiting for some positive signs, whilst hoping for the worst, as based on her claims, it can bring better things in the future.
Zhang, who previously embarked Alphabet Inc. and graduated from Stanford University with a focus on business, trusts that her role in Binance can help prevent scams. In particular, the approach she thinks will help to fight off scams is that of the Cryptocurrency Governance Initiatives (CGI).
In other words, this approach will ensure that Binance is more aware of the projects that exist and will be picky when it comes to supporting them. Here are some the areas that Zhang believes will no longer be of interest to the entirety of Binance:
- Pump and dump schemes
- Collaborations and Investments in Funds
Most importantly, should a team or firm that launches its respective token onto the Binance exchange go against the agreements in place, the consequence will be: delisting the token altogether.
For the time being, the Binance Labs team is said to combine the expertise levels of seven individuals, where the team will use $1 billion of Binance’s profits to make investments. This project will range between three and five years, with four investments already made within tokens and equity sector.
Although tokens and equity are not comparable in value, Zhang considers that despite the difficulty in picking one over the other, Binance Labs will only
“Support the founders and create value for the project as a whole.”
As for the companies they will be investing in, Ella Zhang stated that the team’s interest is to seek projects that are trying to resolve current issues surfing blockchain technology, like that of transaction speed, wallets, scalability, payment apps, privacy, security and other related factors that a decentralized system is known for but still requires more attention.