The head of Binance has recently launched a $1 Billion venture fund, stating that their company considered that the Initial Coin Offering (ICO) market was a bubble to be popped soon. They believed that the popping of this bubble would increase the overall state as well as provide a wide environment for the blockchain industry.

An interview with Ella Zhang, the Head of Binance Labs and the person in charge of investing the $1Billion, revealed that she, and her company would also like the ICO bubble to burst soon. Ella Zhang has been a member of the cryptocurrency trading platform Binance, and has been leading its venture incubator Binance Labs for a bit under two months. About the ICO bubble, Zhang says “We still see a lot of hype in the market while valuations are high and unreasonable. We really think that if the bubble bursts, it would be a good thing for the industry.”

According to Zhang, the bull market will stay positive because it will be able to attract many users and better projects will be seen emerging once the ICO bubble bursts. Although her company is unsure about when this would happen, they still hope it takes place soon. In a recent study, it was found that the digital tokens that are sold by initial coin offerings have broken records by raising more than $9 billion in the year 2018.

Zhang says Binance is trying to combat the spree of shit coins and hyped ICO projects, by launching Cryptocurrency Governance Initiatives (CGI). The website for this initiative will be launched in the coming weeks.

“The purpose of this is to fight scams, coins and boost crypto along with the blockchain technology,” said the Stanford University graduate, using a common epithet for teams who sell off their virtual currency to tear apart unknowing investors or those who have not kept up their promises.

The seven person powered Binance Labs team plans on using the $1 billion in three to five years with its average investment ranging between $1M and $10M. Four investments have been made by, both, the company’s tokens and equity, which they will plan on holding in the long run.

Binance will be encouraging funds and tokens to the teams who are willing to join the initiative. The fund managers will have to restrain from participating in “pump and dump” schemes. Projects should be built according to the pledge in their white papers. Whoever breaks the commitment would no longer be able to enjoy Binance’s investment and collaboration with funds. Binance will also delist the tokens belonging to the respective teams.

According to CoinMarketCap, Binance has emerged as the biggest winner by becoming the best cryptocurrency trading platform. The reasons for Binance to be on the top are many, one of them being that it lists dozens of digital tokens on its exchange. Binance, which was founded a year ago in Hong Kong, stated that it will be moving to Malta after regulators in Asia cracked down on digital currency.