Binance CEO, Changpeng Zhao, said on a post uploaded on Monday on the company’s site, that ICOs were a boon to economies that decided to ban them. During the last year an important number of ICOs appeared and started to raise funds. Unfortunately, a lot of them ended up being scams or stealing investors’ funds.
Binance CEO Supports ICOs to Boost Economic Growth
In the post mentioned before, Changpeng Zhao says that he believes it is easier to raise money through an ICO than through traditional VCs. 
“Through my own experience, and watching hundreds of other projects at a close distance, I would say raising money through ICOs is about 100 times easier than through traditional VCs, if not more. With the ease of raising money increased, logic says there may be 100 times more startups, well-funded startups, where ICOs are allowed.”
He proposes to think about two identical locations but just one of them has 100 times more well-funded startups. ‘Which country will become wealthier over time? Which country will be able to collect 100 times more taxes over time?’ he asks.
Japan, one of the most opened countries towards virtual currencies and ICOs in 2017, was able to increase its GDP by 0.3% due to virtual currencies and investments in ICOs. Other countries like Malt, Switzerland, Belarus and Bermuda have implemented flexible regulations for ICOs, crypto and blockchain-related companies to settle in their soils.
Zhao also compared the decision of investors when deciding whether to put their funds in an ICO or in traditional venture capital models of fundraising.
“Say you wanted to invest $1,000 in the $50MM round for Uber. Guess what; they won’t take your money. Even if you had $1MM, they may or may not take it. They are likely being courted by more famous VC investors. Of course, you can TRY to give your money to a famous VC investor, if you meet their minimum threshold for investing, which is often a few million dollars.”
In the conclusion, he says that most VCs are now investing in ICOs and that the faster companies move, the more probable will be to reap exponential benefits.
Image: Bloomberg
