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Chinese Government Bans ICOs

A stunning development out of China came to light this morning. China banned ICOs meaning that any projects that are raising money through cryptocurrency are now not allowed in a country that is one that has a large number of its citizens involved in cryptocurrencies – to the point where some are leasing planes to ship graphics cards for mining.  

 

NEO, a Chinese competitor of Ethereum is down over 30% today, bringing its price down to around $20, while ethereum is down below $300, which is more than 13% at the time of writing.

 

Although this news is negatively affecting ICOs, as well as the crypto market, there shouldn’t be any reason to be alarmed. This simply means that chinese companies are no longer allowed to use ICOs to raise money.

 

It is unclear whether this action also forbids Chinese investors from contributing to offshore ICOs. However one thing is clear, this news has come with a big hit to the crypto market, as seemingly everything is down today, most of all dapp platforms like Ethereum and NEO, as they have been the most widely used for ICO investment.

A stunning development out of China came to light this morning. China banned ICOs meaning that any projects that are raising money through cryptocurrency are now not allowed in a country that is one that has a large number of its citizens involved in cryptocurrencies – to the point where some are leasing planes to ship graphics cards for mining.  

 

NEO, a Chinese competitor of Ethereum is down over 30% today, bringing its price down to around $20, while ethereum is down below $300, which is more than 13% at the time of writing.

 

Although this news is negatively affecting ICOs, as well as the crypto market, there shouldn’t be any reason to be alarmed. This simply means that chinese companies are no longer allowed to use ICOs to raise money.

 

It is unclear whether this action also forbids Chinese investors from contributing to offshore ICOs. However one thing is clear, this news has come with a big hit to the crypto market, as seemingly everything is down today, most of all DApp platforms like Ethereum and NEO, as they have been the most widely used for ICO investment.