Of all the beneficiaries of the ICO explosion, few have done better than crypto-exchange Binance. However, it seems that you can have too much of a good thing. According to Ella Zhang, the head of Binance Labs, “we’d like the bubble to break.”
During an interview with Bloomberg she described the ICO market as containing “a lot of hype” and that “valuations are high and unreasonable.” Were that “bubble” to burst, it’d be “a good thing for the industry.”
Admitting that a burgeoning crypto space is bringing in many new investors and market participants, she nevertheless believes that there is currently too much noise to pick up the signals of more worthwhile projects.
Cryptocurrency Governance Initiative
To help weed out those signals, Binance is now launching a new project beginning as f next week to clean up the industry. Known as the Cryptocurrency Governance Initiative (CGI), the main purpose of the scheme “is to fight scams and sh*t coins,” Zhang states, whilst at the same time promoting crypto and blockchain technology.
Teams collaborating with Binance will be encouraged to sign up to the initiative, which will include promises not to “participate in pump and dump schemes.” Projects will also be held accountable for their white-paper claims to ensure that what is promised pre-ICO is actually delivered. Any breaking of those promises will have repercussions such as delisting or the withdrawal of any Binance investment.
As part of the program, Binance Labs will also be seeking to inject funding into decentralised exchange projects as well as algorithmic trading and market data apps.
