Binance founder and principal executive, Changpeng Zhao, took aim at initial public offerings, or IPOs, and venture capital fundraising while speaking at the recent BlockDown 2022 conference.

Despite the recent pass up in crypto investment, Changpeng Zhao, or CZ, expressed confidence that the blockchain fundraising markets will produce exponential growth in the coming years, emphasizing the blast and bust cycles of investment into other tech industries.

IPOs leave the public 'property the bag'

Speaking at BlockDown 2022 on April 16, CZ described distributed ledger technologies, or DLT, as driving creative destruction in global fundraising practices, arguing blockchain fundraising has immune individuals to raise coin globally in a decentralized manner for "the first fourth dimension in history."

Binance's founder also criticized traditional fundraising methods such every bit IPOs, stating:

"Institutional investors greenbacks out, the CEO gets a big bonus, the retail guys get left holding the pocketbook, and then the company [becomes] a really big public company, and the CEO takes big packages then leaves, then the regime has to bond them out."

Zhao added that traditional fundraising methods have been "played [for] too long," emphasizing that "a lot of people know how to play information technology and they practice game [the system]."

Blockchain fundraising to grow exponentially in coming years

CZ characterized the 2022 initial coin offering, or ICO, bull market every bit "too hot," describing the recent decline in blockchain fundraising as an "overreaction" to the over-exuberant bullishness of the terminal ICO boom. He as well notes the bear upon of the global economic slowdown on the broader capital letter markets.

"At present, nosotros are definitely a tough marketplace economically speaking," he stated, adding: "In that location is a lot of incertitude, there is a lot of volatility, there is a lot of fear. So naturally, right at present, it is a really tough time to enhance coin."

Despite the contempo slump, Binance predicts crypto fundraising will increase over the longer term, stating:

"I think [the] number of blockchain fundraising activities and the fund raised will go on to increment on a twelvemonth-to-year basis over the next ten [to] 20 years."