From Chinese regulators was naive to assume that the cryptocurrency community is China going to stop some kind of state ban on the activities of ICO. Both investors and issuers of China have found a way around the laws, introduced last year.
Despite the fact that the ICO in Asia is very popular, Chinese regulatory bodies in September 2017 blocked the young market of oxygen by putting the sale of tokens outside of the law. Meanwhile, in Asia produces the largest number of bitcoins, and many users tend to invest their income.
The effectiveness of the ban ICO in China is comparable to the effectiveness of the ban of the parent indicating to their playing children to calm down. The number of investors, certainly much diminished, but the interest for the ICO have not disappeared, and became veiled.
Another workaround for issuers to organize the so-called “airdrop” in which tokens are distributed at zero cost. It’s a clever marketing ploy — issuers behind the coins, win as projects are gaining momentum among community members.
The initial proposal of the miners, or IMO, is another attempt to circumvent the ban regulators. The idea IMO is that equipment used to process transactions blockchain cryptocurrency for sale by receiving investments under the new funding model. Sell equipment intended to handle certain tokens. The new model has already attracted the attention of the Chinese regulator, according to which it is a “disguised ICO”.
Take for example IMO Xunlei. The participants of the IMO provided the bandwidth of your computer in exchange for coins Lianke. The regulator described this as an event to raise funds.
To promote their innovations issuers ICO also use the good old trick with moving abroad. They move their corporate headquarters to another state, and the process of investments from China is a method called “export to domestic sales”. The essence of the method lies in the fact that in ICO projects, third-party mediators act by proxy Chinese investors often get a good discount. Communication about the projects going on in the messengers.
Will weaken China ever its grip on the throat of the cryptocurrency market, in particular ICO, yet to learn. But for now, it seems that the ICO market in China is alive and well, just hiding.