As expected, the PBOC released a statement regarding the crypto currency industry, specifically banning ICOs in China and other related activities within the country. We have been anticipating this announcement for the past several months. Legislation and government involvement is necessary in order for the industry to have mass adoption. We have been very excited about the hyper growth of the market and happy that legislation has finally recognized that this market is far too large to ignore. This is further validation of the massive impact that blockchain technology has had in the world and is here to stay; the single most disruptive technology available to the world today.
As usual there is a massive overreaction from news coming from China. It’s possible to say that the basis of latest announcement that China is banning ICOs and exchanges is unreliable as there has been no formal statement from a government official. The origin of the news was a Google translated article from a Chinese journalist, who apparently had spoken to some official. So the news is three layers from the original source. Last time China banned or wanted to stop Bitcoin, they reversed the situation some months after.
The explosive growth of Initial Coin Offerings (ICOs) have been one of the hottest news stories of 2017. These asset instruments allow organizations to raise investment capital through the sale of homegrown cryptocurrencies, that can be traded for cash or other forms of digital currency.