If you don’t want to hold onto investments forever, then you have to time the market. The question ‘when should I invest?’ is one that we hear all too often for that reason. According to Binance is it time now.
Crypto exchange Binance dares again
The crypto exchange announces in a press release announces that it has renewed its venture capital arm again. Here it invests in brand new projects that need financing. Usually these are very risky companies because they are still in their infancy. During a bear market, companies are less willing to finance new businesses. So competition decreases.
So it’s smart for Binance to wait a while until investors compete less for the same companies, and apparently the wait is over now. Binance leave its subsidiary Binance Labs re-investing in riskier investments.
The aim is to ‘disrupt the institutions that no longer serve society effectively’. It does not say exactly which types of institutes these are, but the fund will of course invest in blockchain projects. Binance co-founder Yi He will head the fund.
BBest time to invest in crypto companies
In an interview with CNN, he explains that bear markets are the best time to invest. “We also did this four years ago during the bear market bottom. We invested a few hundred million dollars back then, our portfolio is now worth 7 billion dollars. In bull markets, everything is too expensive, and people get arrogant. The projects that are now left are very modest, this is a great opportunity.”
Binance Labs claims to be the largest venture capitalist in the crypto industry, with a total of $7.5 billion in assets under management across more than 200 different projects. It has already achieved 2.100% return.
Binance has made some big strides lately. For example, it reduced the trading fees for some trading pairs to zero. Despite the bear market, it is in very good shape because it had set aside a lot of cash. That will now be put to work.
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