Monday 4 September 2017

China Has Banned ICOs and Token Sales


With immediate affect, China has banned all ICO sales and they also will probe in few companies find out any wrong doing has done in the past. But as of now not sure which are those companies, they will target for now or they will go again all the companies in China.

This news has created a panic in the crypto world and most of the coins are now following like no bottom. But if you're a smart investor then take this opportunity to accumulate some good altcoins at lower prices.

Central Bank of China has determined that placements in the crypto-currency market, called ICO or Initial Coin Offerings, are illegal and the proceeds must be repaid. This is the most drastic measure at the height of these operations, in which a company creates a crypto tokens and sells it to the public. Instead of obtaining shares of the company, the investor receives tokens or currencies created by the company that, in the future, may have real value, in a sort of crowd funding backed by imaginary currencies.

Crypto-currency fever caused by the vertical rise in bitcoin prices has led to the boom in these operations. The ICO has raised 1.6 billion dollars (1,333 million euros) in the last year, thanks to investors intent on having in their virtual hands the next philosopher's stone, also virtual, of course.

The People's Bank of China believes that, after conducting an investigation into this market, it will strictly penalize the sale of invented coins and will pursue possible irregularities in the transactions already closed. Anyone who has sold crypto tokens to the public must return the funds, although the bank has not determined how. Exchange platforms will not be able to change ICOs' coins per traditional currency, and banks will not be able to participate in them.

The measure punishes one of the most avid markets for crypto-currencies and responds to the supervisor's fear that the Chinese rush for Bitcoin and its imitators will risk the financial system. In China, 43 companies have traded their own currencies.

The US markets supervisor, the SEC, has warned about these operations but has not banned them. Yes, it has forced operations to register. Some studies consider that 10% of the ICOs are scams.


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1 comment:

  1. Central Bank of China has determined that placements in the crypto-currency market, called ICO or Initial Coin Offerings, are illegal and the funds obtained must be repaid. This is the most drastic measure given the rise of these operations, strange to the uninitiated, in which a company creates a cryptonnet and sells it to the public. Instead of obtaining shares of the company, the investor receives tokens or currencies created by the company that, in the future, may have real value, in a sort of crowdfunding backed by imaginary currencies.

    Crypto-currency fever caused by the vertical rise in bitcoin prices has led to the boom in these operations. The ICO has raised 1.6 billion dollars (1,333 million euros) in the last year, thanks to investors intent on having in their virtual hands the next philosopher's stone, also virtual, of course.

    The People's Bank of China believes that, after conducting an investigation into this market, it will strictly penalize the sale of invented coins and will pursue possible irregularities in the already closed transactions. Those who have sold cryptones to the public must return the funds, although the bank has not determined how. Exchange platforms will not be able to exchange currencies from ICOs for traditional currency, and banks will not be able to participate in them.

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    The measure punishes one of the markets most avid for crypto-currencies, and responds to the supervisor's fear that the Chinese fever by the bitcoin and its imitators will pose a risk to the financial system. In China, 43 companies have traded their own currencies.

    The US markets supervisor, the SEC, has warned about these transactions, but has not banned them. It has forced operations to register. In many cases, ICOs, often linked to applications using blockhain technology, are only based on a 'white paper' or market study, from which the tokens '. Some studies consider that 10% of the ICOs are scams.

    The decision of the Central Bank, has caused a 7% fall in the price of bitcoin, similar to that registered by other currencies like Ethereum.

    Precisely today Paris Hilton has announced to its 16 million followers on Twitter that it looks forward to participating in an ICO, of a company called LydiancCoin and that plans to combine marketing, artificial intelligence and blockchain technology, without specifying very well how. The initiative is part of a company whose CEO was in prison for a case of domestic violence.

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