Binance CEO, ChangPeng Zhao shared the details on a huge rise in institutional investments in the crypto space, increasing ICO investment and favorable regulations while announcing the token burn of 2.5 million BNB in this quarter among other developments in the recap of quarter 4.
Institutional investment, ICOs & favorable regulations on rising
Binance CEO, ChangPeng Zhao presented a recap of the Quarter 4 in the latest LinkedIn post. Giving a summary of the developments and specifically covering the token burn part, he shares that the overall market (BTC) has been relatively flat.
Talking about the earnings, he clarified that there has been a “slight drop” in the price in the 4th quarter compared to the last one. But despite this, Binance pulled in “decent earnings”.
Zhao points out the fact that the overall market drop doesn’t make sense as the interest of Institutional investors has been on rising combined with huge investment in ICO and favorable regulations.
About institutional interest, he wrote,
“we have seen a huge uptick in institutional investments in the crypto space, both in a number of firms and the size of their buy orders.”
“We have seen $14 billion USD raised from ICOs so far this year, on par with 4x the amount raised in 2017. This alone should boost price. On top of that, we have seen many jurisdictions releasing favorable regulations towards ICOs, exchanges, and cryptocurrency. They changed from “unsure” to “want to attract blockchain businesses”. This is very exciting!”
– states Zhao.
He makes the guess that “markets always overreact, both on the high and the low side.”
Also, read Binance CEO: “Malta is Fusion Ground for Traditional and Blockchain Finance”
About 2.5 million BNB to be burned
Zhao also mentioned that in this quarter 2,528,767 BNB which is about $34.5 million approximately (at the time of writing) will be burned. This BNB token burn would be reportedly the highest token burn in a quarter so far.
He also cleared the air on the concept of burn which has the same financial effect as the dividend distribution. But in actual is better as burn doesn’t have the potential downsides of dividend distribution.
Talking about the new concepts in the crypto exchange space like trade-mining, 100% refund on trading fees, 100% dividend distribution, and zero fee posting, he says these are “simply scams” and not innovation.
He also made his stance clear on coin listings that for one they don’t ask for high listing fees and that Zhao is not personally involved in the posting process.
The blog further discusses the developments in the company in terms of Binance Charity Foundation, SAFU, Binance Chain (DEX) and Binance fiat exchanges among others. He concludes with the promise of interesting and exciting things coming in the future.
Written by Anjali Tyagi @ https://coingape.com/binance-ceo-crypto-market-seeing-huge-jump-in-institutional-investment/ July 18, 2018 Anjali Tyagi