China ICO Ban: Crypto Industry Leaders Weigh In
This morning’s China ICO ban announcement has sent shockwaves throughout the digital currency ecosystem, causing investors to panic and $25 billion to evaporate from the total cryptocurrency market cap.As CCN reported, the People’s Bank of China (PBoC) declared initial coin offerings illegal and ordered all ICO investments to be returned to contributors. This ban has wide ramifications and will likely result in startups banning Chinese contributors from participating in future crowdsales, as EOS did this morning. News of the ban sent the markets tumbling, with nearly 90 of the top 100 cryptocurrencies experiencing 24-hour price declines that were greater than 10%.
Crypto Industry Leaders Weigh in on China ICO Ban
Industry leaders took to social media to share their thoughts on the PBoC squeeze and its potential ramifications. Saying what was likely on the minds of many community members, ShapeShift CEO Erik Voorhees dryly opined that China “just love to bans stuff.”
FollowErik Voorhees ✔@ErikVoorheesChina just loves to ban stuff. Token sales, Google, second children...9:53 PM - Sep 4, 2017 3535 Replies
186186 Retweets
463463 likes
Twitter Ads info and privacyICO critics did not pass up the opportunity to say “I told you so.” Ryan Selkis, better known by the handle TwoBitIdiot, predicted that the U.S. Securities and Exchange Commission will follow suit.
FollowRyan Selkis @twobitidiotI think it's time to go full-tilt hate on the ICO market for the rest of the year. Repeat after me: "Why do you need to hold this token?" https://twitter.com/parishilton/status/904456098035286016 …3:39 AM - Sep 4, 2017 1111 Replies
3030 Retweets
113113 likes
FollowRyan Selkis @twobitidiotLooks like the PBOC agrees. SEC next and then it's burn baby burn. https://twitter.com/twobitidiot/status/904474055243427840 …3:57 PM - Sep 4, 2017 88 Replies
66 Retweets
2828 likes
Twitter Ads info and privacyChainstone Labs founder Bruce Fenton disagreed, arguing that the “SEC will be a non-event” because “this space will grow way faster than [regulations] can keep pace with. He predicted that China will capitulate and reverse the ICO ban to avoid being “left in the dust by a sea change.”
FollowBruce Fenton @brucefentonI'll bet you 20 BTC that China will capitulate on ICOs...no major economy wants to be left in the dust by a sea change.9:23 PM - Sep 4, 2017 1212 Replies
1818 Retweets
4747 likes
Twitter Ads info and privacyProminent crypto trader WhalePanda also weighed in, forecasting that the China ICO ban will primarily affect China-focused projects such as NEO and Binance.
FollowWhalePanda @WhalePandaTo recap: China bans ICOs, that means the actual projects that are impacted by it is a tiny percentage of $Crypto, mainly Binance and $NEO6:37 PM - Sep 4, 2017 3232 Replies
6060 Retweets
142142 likes
Twitter Ads info and privacyHe argued that this will have “no impact on Bitcoin and…very little [on] Ethereum,” so investors should “buy back the coins that you panic dumped.”
4hWhalePanda @WhalePandaReplying to @WhalePandaICOs will probably ban Chinese people from participating, like they're doing now with US investors since I'm sure none of them use VPN.
FollowWhalePanda @WhalePandaOverall this has no impact on #Bitcoin and actually also very little in #Ethereum. Now you can buy back the coins that you panic dumped.6:39 PM - Sep 4, 2017 2525 Replies
6464 Retweets
167167 likes
ICO Tokens Risk Exchange Delisting
Crypto analyst Tuur Demeester, on the other hand, found more in the statement to be concerned about. Noting that South Korean regulators are also reportedly strengthening digital currency regulations, he suggested that the application of securities law to ICOs will lead to fear, uncertainty, and doubt (FUD) about whether South Korean exchanges will delist ICO-backed ERC20 tokens.View image on Twitter
FollowTuur Demeester @TuurDemeesterSouth Korean government to bring AML/KYC scrutiny and apply securities law to ICOs, exchanges. (Cue delisting FUD)http://www.businesskorea.co.kr/english/news/money/19180-regulating-bitcoin-trading-financial-authorities-strengthen-regulations-digital …7:57 PM - Sep 4, 2017 77 Replies
6565 Retweets
6464 likes
Ethereum Classic to Benefit from PBoC Crackdown?
Venture capitalist Barry Silbert believes ethereum classic could find a silver lining in the fallout from the PBoC ICO crackdown. Silbert, whose Ethereum Classic Investment Trust reportedly holds 3.6% of all ETC in circulation, predicted that the SEC would deal initial coin offerings a fatal blow that will create substantial downward pressure on the ethereum price. He argues that the ICO bubble burst could lead investors to sour on ethereum and begin turning to ethereum classic as a smart contracts platform.
6hNick Ducoff ✔@nickducoffReplying to @barrysilbertCan you explain?
FollowBarry Silbert @barrysilbert1/ essentially no ICOs have been done over/using ETC, so when the ICO bubble bursts, there will be no ETC selling pressure5:17 PM - Sep 4, 2017 22 Replies
11 Retweet
22 likes
Twitter Ads info and privacyThat has not happened yet, however, as the ethereum classic price is down 17% for the day.