ICO is hundred times better than traditional venture capital investments, and soon hundred times more well-financed start-ups may appear in the world.

This opinion was expressed by the head of Binance Zhao Changpeng in his blog post on Medium. According to him, ICO is not just a good opportunity to raise money, but also a necessity.

"Through my own experience, and I will say hundreds of times, ICs are about 100 times easier than 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. Now, imagine two different identical locations, but one has 100 times more well-funded startups; what would be their relative speed? Which country will become wealthier over time? Which country will be able to collect 100 times more taxes over time? Which government will have more influence (more power) over time? For me, it is crystal clear but draw your own conclusions," wrote the head of Binance.

In addition, Zhao Changpeng analyzed in detail all the advantages of ICO in comparison with venture investments. He cited a high rate of money collection, simplified procedure for investing and selling funds, as well as the fact that investors themselves can become users of a particular product.

The head of Binance also gave some advice to ICO investors.

"Do not just follow the herd. Invest in projects you understand. Read the whitepaper. Follow the founders for a while. If you find anything good or bad, share it. You need to contribute to the crowd. Scams exist everywhere, in every industry. I still receive phone calls and SMS telling me I won a grand prize, but I need to make a bank transfer to someone first. Does that mean we should stop using phones, SMS, and banks? The same law enforcement. We do not need to re-invent the wheel here."

According to Zhao, many ICO projects are start-ups, and therefore they have a great risk of failure. However, this is also typical for traditional start-ups. In conclusion, Zhao Changpeng said that many venture investors already invest in ICO projects and wished everyone not to miss their chance.

Meanwhile, last April was the worst month for ICOs in the last eight months. Projects attracted slightly more than $543 million. It is likely that May will be more successful. Within the first eight days of the month ICOs already collected more than $157 million. In total, since the beginning of 2018, around 700 ICOs have been held in the world, attracting around $4.4 billion.