The ban is not a verdict: the crypto community assessed the consequence of the ICO lock in China

Russian participants of the crypto-currency community assessed the causes and consequences of the decision of the Chinese Central Bank

The National Bank of China has declared illegal operations for ICO — the collection of money in the crypto currency. The financial regulator ordered not only to stop all ongoing ICO-campaigns, but also to return the funds collected earlier, as well as forbidden operations of exchanging crypto-currency for fiat money. Forbes invited the participants of the crypto community to assess the reason for the ban and the consequence of such a decision.

Chinese share

“The Chinese actively participated in the ICO, and the projects often specifically focused on online marketing targeting the Chinese, but it’s very difficult to assess China’s share in the ICO,” explains Konstantin Vinogradov, chief investment officer at Runa Capital, executive director of the IT cluster Clinton. The matter is that payments in crypto-exchange networks are anonymous and the citizenship of their sender is very difficult to establish. Some estimates may be given by Bloomberg’s data, that out of the $ 1.6 billion collected for the ICO (of which $ 1.25 billion this year), a quarter is accounted for by the campaigns initiated in China.

“Unregulated markets and crowdaming through the sale of tokens attracted a huge number of crooks and fake (empty) projects in order to collect crypto-currencies for their implementation. It is obvious that many projects did not sell anything except the idea and openly promised a high return on investment, but the risks did not describe and in fact could mislead investors, “explains the business angel, general director and shareholder of OneTwoTrip Mikhail Sokolov.

Purification of the market

“I do not see something very bad in China’s decision. Now the ICO market is completely wild, and some normalization will not hurt it — first banned, then they will gently untwist the nuts “, — Konstantin Vinogradov assesses the influence of the decision of the authorities of the Celestial Empire. Mikhail Sokolov adds that kraudfanding must meet some standards, which are not on the ICO market yet and draws parallels with the regulation of casino activities. He believes that in the future the market can concentrate in several regions where regulators will take to form standards, and before their appearance “it is better not to play hide and seek with regulators, all sensible people understand this very well.

Stepan Gershuni, the managing partner of bits.capital, pointed out another advantage of the decision of the National Bank of China: “I think this is generally a very positive development for the industry, because it clearly shows the division between tokens and crypto-currencies, where the first is an illegal investment mechanism, and the second — financial instrument “.

“The market will grow 10, 100, 1000 times”

Earlier on July 25, the US Securities Commission (SEC) decided that kraudinvesting in the crypto currency should protect the rights of investors. She practically equated kraudfanding in the crypto currency to the IPO on the complexity of preparation. Although there is no direct connection with the US decision, experts believe that the decisions of central banks of different countries are a trend. The founder of DeCenter, Evgeny Gordeev, explains: “We saw the decision of the regulator in Singapore (August 1, 2017 — Forbes), I await the decision of regulators and other developed and developing countries. Now there is a general trend for giving the legal framework for people to participate in the ICO, accepting payments, etc. “

Perhaps the consequence of this trend was the statement by the Bank of Russia on the increased risks of using and investing in crypto-currencies made on September 4, 2017.

According to Gordeev, it is now clear that the crypto currency and the blocking country will not go anywhere, so the states should take steps to regulate this market. For the market, this means a multiple growth, the expert says: “As soon as the ICO gets an official status, companies will be able to participate in it licensed and officially, the market will grow by 10, 100, 1000 times, because pension funds, exchanges, do not want to draw attention to themselves. “ He added that he welcomes such actions, because the subsequent growth of the crypto-currency market can only be compared with the boom of high-tech companies in the era of the Internet in the 90s.

After the announcement of the National Bank of China, the Bitcoin rate fell by 7%, and the air (the main currency for the ICO) fell to 12%. However, then there was a correction, as a result, for a day Bitcoin fell by about 5.5% (to $ 4317), and the Ethereum — by 11% (to $ 308). At the same time, the drop in the Crypto-currency began last week as a result of correction after reaching a record mark of $ 5000 per bit. Thus, the participants in the crypto community reacted to the decision of the Central Bank of China with caution, but without panic: in the history of the crypto-currencies there were more significant leaps — after the fake news of the death of Vitalik Buterin, on June 25, 2017, the Ethereum dropped by 14%.

Source: cryptics.tech