Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
Binance CEO Changpeng Zhao hit IPOs and venture capital financing. But he was quite optimistic about the evolution of blockchain technology.
Changpeng “CZ” Zhao, Binance CEO, has hit IPOs and other traditional fundraising models hard. Sources say that the cryptocurrency icon did so at the BlockDown 2020 conference.
CZ also indicated his optimism in the evolution of blockchain technology. He was positive about the rise of blockchain technology in raising money.
Binance CEO CZ Emphasizes Blockchain Technology’s Role
He also emphasized the role of destructive creativity in processes and procedures as regards fundraising.
Zhao also said that people have been able to raise money on a decentralized basis for the “first time in history”.
“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 continued giving traditional fundraising systems hard knocks. CZ also said that the systems have been “played [for] too long,”. He also added that ”a lot of people know how to play it and they do game [the system].”
This points to the money game played by the supposed masters of the financial universe. Backed by law, these individuals have been able to destroy the fabric of national economies. This is possible by exploiting loopholes in rules and regulations on fundraising.
As such, the natural boom and bust cycles have been reduced to artificial phases. This has brought further inflation to an already strained global financial system.
Now that a real emergency has come (the COVID-19 fallout), all the Central Banks are left with is unlimited interventions. The U.S. Federal Reserves’ Quantitative Easing unlimited (QE2) is a case in point.
This may very well be the time that DLTs and its child Blockchain Technology for it to rise.
CZ also continued further. He referred to the 2017 ICO bull phase as a hot market. He said that the markets were “too hot”. Zhao saw the current declines in fundraising in decentralized markets as an “overreaction”.
The last 2017 boom period for the blockchain space had a lot of energy around it.
We Are Currently in a Time of Fear
Changpeng also noted a decline in global financial markets. He noted that the slowdown is due to the decline in activities in the broader economy. Binance CEO said:
“Now, we are definitely in a tough market economically speaking. 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.”
Speaking as the Nostradamus of the blockchain space, Changpeng predicted:
“I think [the] number of blockchain fundraising activities and the fund raised will continue to increase on a year-to-year basis over the next 10 [to] 20 years.”
The blockchain space holds the highest amount of potential for recovery than any other industry post-COVID-19. This is because of the distinct advantages that the technology has to offer. If the data from the last few years are anything to go by, we will see an implementation of this technology reach broad-scale adoption.
Changpeng “CZ” Zhao is on point in this regard.