Binance CEO Condemns Traditional Fundraising Methods at BlockDown 2020 Conference

April 21, 2020 6:17 PM UTC

While speaking on the BlockDown 2020 conference, Changpeng Zhao, CEO, and founder of Binance, shared some rough words for IPOs (initial public offerings), and VC (venture capital) fundraising methods.

Changpeng Zhao highlighted his confidence in the development of blockchain while trying to show the trust that blockchain-based fundraising methods will create as well as the massive growth achieved in the future.

CZ Highlights The Blockchain Role in Fundraising

Zhao explained that distributed ledger technologies are restoring and expanding global fundraising methods, stating that blockchain fundraising methods have empowered people to invest in a decentralized manner for “the first time in history.”

CZ stated:

Institutional investors cash out, the CEO gets a big bonus, the retail guys get left holding the bag, and then the company [becomes] a really large public company, and the CEO takes big packages and then leaves, and then the government has to bail them out.

He also explained that traditional fundraising methods have been “played [for] too long,” stressing that ”a lot of people know how to play it and they do game [the system].”

Changpeng Zhao also referred to the 2017 initial coin offering bull run as “too hot.” Zhao described the current slumps in decentralized fundraising markets as an “overreaction”. He further adds: “There is a lot of uncertainty, there is a lot of volatility, there is a lot of fear. So naturally, right now, it is a really tough time to raise money.”

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