ICOs Declared Illegal In China - Markets Turn Red All Across The Crypto Spectrum
According to this article on Bloomberg, PBOC (People Banks Of China) just declared ICOs illegal. That explains the dumping with which we started this week. Not only ICOs are illegal from now on, but, according to the same PBOC, "those who already raised funds via ICOs must give the money back".
This is by far the strongest regulatory measure ever. It was somehow expected after Neo, the re-branded AndShares ecosystem, pumped enormously, raising a lot of flags in the land of the big Bitcoin miners (China, that is).
Some commenters appreciated the news as being positive:
“This is a positive move given the rapid proliferation of low quality and possibly fraudulent coin sales promising the moon,” said Emad Mostaque, London-based co-chief investment officer at Capricorn Fund Managers Ltd. “There is tremendous value in the model but we need to see more separation of high quality, ethical offerings versus those seeking to circumvent securities law for a quick buck.”
BTC fell to $4354, while ETH lost more than 10% of its value, sitting now at just a little over $300.
Unfortunately, the entire crypto market is losing ground, with STEEM coming down to $1.22 after it saw peaks as high as $1.57 last week.
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I don't get why such a big and awesome project like Neo would be affected long-term by this kind of measure ? China is big, but the world is big enough for their model to be proven and adopted later by China .. They already did a similar thing with bitcoin trading, haven't they ?
Is it a surprise?
The "libertarians"/"anarcho-capitalists" criticize the US, while either ignoring, or praising China and Russia.
While 5 hours after you jcornel came with the same important report, you were first of those I know to share these !originalworks
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It's about time this ICO-bullshit comes to an end. Too many people get scammed by all this... And that is very damaging for real true cryptocurrencies that add decent value to the world. Off course, not all ICO's are scams, but lots of them are... So for me this is a very good decision by PBOC!
AGREED! The hardcore free market people won't like this but... these ICOs are crazy, I'm glad that they're being forced to slow down a little.
An opportunity to buy solid functional cryptocurrency.
That gives some explaining to it, ty. You think NEO will get out of this eventually?
Nope. I don't trust that project.
I was thinking of buying some as it seemed to have a huge opportunity in the chinese/japanese market, but now I am not so sure. EOS wen't down a lot as well, below 1dollar now. Maybe i'll buy some more of those.
When comparing EOS to NEO, EOS comes first if only for the experience of EOS's founder, @dan. He built graphene, which is used in BitShares, Steemit and PeerPlays. He kinda know what he's talking about. I'm also very curious how the actual EOS product will look like.
@dan is the man. EOS and Bitshares have always been my top priority investment together with Steem (Steemit is actually were it all started for me). Don't think I'v heard of graphene and PeerPlays before though. Anyways I like to spread my money a bit and (especially) invest in things that sounds interesting for the future.
graphene is the blockchain engine that sits at the base of the 3 projects mentioned above, including Steemit. All are built on top of an engine called graphene.
@dragosroua,
Regulating ICO is a good thing! Otherwise those fake pulse coins were totally jammed the market in last 2-3 weeks of time! Whatever SEC do, what ever PBOC do that's a must!
Thanks for sharing such useful news with us! After all BTC and all other stable coins will rise and all sh!t will disappear into thin air!
Cheers~
It is the time to buy some cryptocurrency...
That explains why NEO has been getting absolutely butchered recently. I guess that was the biggest problem as the Chinese government could shut their whole operation down and making ICOs illegal is the biggest hit to the organisation.
That explains why so much money has been taken out. Thanks for letting us know @dragosroua
Thank you for that information. I was wondering, why all crypto-coins went down…
All I see is another chance to buy more bitcoin, litecoin & ETH on the cheap... Compared to where these three will be in the future, it truly is a great time to buy, buy & buy some more! :D