Abstract : After the last round of bubble bursts, investors have become more mature and experienced, more sensitive to project valuations, and have more accurate judgments. The pace of investment of the organizations is also slowing down, no longer spending a lot of money. They are more cautious, putting more focus on post-investment rather than pre-investment.
After a long winter, investors found that the blockchain market in 2019 has changed compared to 2017. Some well-known projects have disappeared, and some new concepts have become the mainstream of the market: De-Fi, Staking economy , Layer 2 expansion, stable currency. Faced with these new formats, the market that has survived the bear market is calmer. Among all these new formats, what are the future directions?
Zhang Ling, head of the Binance incubator, accepted an interview by ChainDD. She introduced us to the view of the investment and development of the blockchain industry. In 2018, Binance company established the Binance incubator and began to build its own ecology around the currency security in the form of venture capital. At the end of 2018, the company launched the first eight projects of the incubation plan; in the first half of 2019, it launched the second phase of 13 projects.
ChainDD made a simple classification of these 21 projects: almost all of the eight projects in the first phase of the incubation program are dedicated to providing the underlying architecture, development platform and ecosystem for the blockchain, such as hardware wallets and decentralized transaction standards. In the 13 projects of the second incubation program after half a year, the projects dedicated to the application of blockchain technology accounted for nearly half. From these projects, we can easily see the ambition of Binance to create a “Binance system” that encompasses the development of Binance and includes infrastructure and applications. Zhang Ling told ChainDD that in the third incubation plan of October 2019, Binance will still focus on the infrastructure , and in this period will be more willing to support projects that can provide value for the Binance ecology.
Zhang Ling said that in recent years, De-Fi has become a hot field in the industry. Binance incubator has already begun to be deployed in this field. For example, Cred, the encrypted lending platform invested by Binance incubator, has its own mature and compliant products. The stable currency project Terra has also been launched on the main network this year. She believes that the combination of blockchain technology and finance will generate new financial products, and more interesting applications will follow.
From these perspectives, the current market and the bear market have produced tremendous changes. Zhang Ling believes that this means that the market is beginning to realize that cryptocurrencies require real application scenarios. More and more public chains have already released the main network, and some solutions for the expansion layer have been gradually improved. Next, the cryptocurrency usage scenario will be implemented through the application layer project, which is one of the future investment priorities of Binance incubator.
For the third phase of the newly opened Binance incubator plan, Zhang Ling said that as an investment institution in the vertical sector of the blockchain industry, Binance hopes to provide resources for the entrepreneurial team to help them seize new development opportunities. Whether it is a direct investment or an incubation plan, the position of Binance incubator is consistent, which is paying attention to the long-term value of the project and promoting the development of the industry together with more quality projects. Therefore, the direct investment of Binance incubator is the entrepreneurial project of the existing products, and the incubation plan is for the early start-up team. These teams only have initialization ideas and have not yet presented mature products and services. Zhang Ling hopes to find more such teams through the incubation plan to help them seize the opportunity of development and polish products that meet market demand.
At the end of the interview, Zhang Ling told ChainDD that cryptocurrency is a market full of temptations. The energy of the founding team is easily dispersed by the market. It is difficult to focus on polishing their own technology and products. Those teams that keep the initial heart and strive for their aims in the bear market will succeed in the bull market and eventually get recognition by the community. The market is cruel but fair. Over time, it will automatically eliminate the worthless projects, and the projects that survive will lead to a new wave of rising momentum. In the long run, Binance incubator is still optimistic about the cryptocurrency market.
The Registration link of Binance incubator phase iii incubation plan has attached.