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Binance CEO says IFAs are "necessary", most venture capital firms "have no clues"

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Binance CEO, World's Largest Cryptocurrency Exchange, Believes Initial Currency Offerings Will Substitute Venture capital is the primary method used by start-ups to finance growth .

Wrote in a blog post titled "ICOs – not just" good to do ", but necessary," Zhao praised the virtues of ICOs, explaining from direct experience that "raise money to across OICs is about 100 times easier than through traditional VC. "

The supposed benefits that VCs offer to startups are far from exaggerated, as most VCs have "no idea" of the projects in which they invest or how to help a young company take off.

He wrote:

"Although some professional venture capitalists are true experts in their field and are sincerely trying to help entrepreneurs, I find that the vast majority of professional VCs have no idea projects or areas in which they invest, they have no start-up experience and do not even have a basic understanding of the technologies involved in their fields. "

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Zhao added that he believes that a higher ratio of projects funded by the ICO will eventually succeed than the "traditional VC projects invested", and he noted that many VCs have already started investing directly in ICOs.

Although not directly mentioned, Zhao drafted this post in the context of his legal dispute with Sequoia, a renowned venture capital firm whose Chinese division attempted to acquire a minority stake in the exchange last year

.

As CCN reported, Sequoia has Zhao for allegedly violating an exclusive deal by receiving an offer from another venture capital firm after discussions between Binance and Sequoia have failed.

Zhao denies the allegations, and on Monday, he tweeted that Binance "may soon require that all projects requesting to be listed on Binance disclose whether they have direct or indirect relationships with Sequoia."

Binance did not respond to NCC's request for clarification on what Zhao meant by this statement.

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