With ICO Chinese blockchain startups have attracted at least $400 million in 2017. But in early September, the Committee on supervision of risks in the field of Internet Finance of China announced an immediate ban on raising funds through ICO. Moreover, the authorities ordered the operating companies to return investors funds, assuming that 90% of all companies — is a financial pyramid. But strict measures, as expected did not deter the scammers, and simply drove them underground along with standing designs.
Chinese cryptocurrency exchange BTCC and ViaBTC was closed on September 15 and in two weeks the giants such as OKCoin and Huobi refused to trading currency pairs bitcoin/yuan. Because of this, most of the exchange activities were transferred underground. Users started to send each other cryptocurrencies using private addresses that serve as safes. This exchange of cryptocurrency, the authorities of China today can not control.
In September, the experts said panic over the ban ICO and closing cryptocurrency exchanges are not worth it. Predicted by «loosening the screws» after the re-election of the head of the PRC XI Jinping, explaining that the Communist party does not want to spoil the reputation of scandals related to fraud. But the elections were held in mid-October, and the situation with the ICO remained the same. A new sector of the underground economy began to flourish. Investors are attracted through messengers, often the means of attracting investors resemble methods of a financial pyramid.
Measurable Data Token (MDT) is a decentralized platform for the exchange of data, will be used to identify and promote users who transmit their data to companies. The MDT team does not advertise his work and attract customers through advertising. Instead, they created a group on WeChat (the Chinese equivalent of WhatsApp), where this morning it was no more than 400 subscribers, and send participants an email in which I explain the details of the project for investment. However according to one of the investors, the company is moving slowly. After the ban ICO most people are just trying to sell their tokens and return the money, but enthusiasts too.
With MDT working platform for the exchange of tokens Mixin. It is made on the basis of EOS. The project Mixin has released 1 million coins XIN. Half of them will be reserved for command Mixin, 400 thousand XIN will be listed as a cryptocurrency pairs XIN/EOS on the stock exchange BigONE without limitation prices from 25 November to 25 December. Orders will be executed in accordance with price priority time. Bidding will end as soon as it reached the strap of 8 million EOS.
The remaining 100 thousand XIN will be sold to investors from the «white list» after 25 Dec for the lowest price on BigONE. In order to get to the white list you need to register on the platform and get the link with the invitation code, send link to others (friends or acquaintances), and if somebody registers with your invitation code you and your friend will receive a fixed share of the quota «white list». Further will also be invited to lend some stock to the original visitor, and so on to the seventh level.
Although the members of the group complain that this type of attract investors is very similar to a pyramid scheme, it has its participants. In this Mixin has not published any information about the development team and road map. They have no technical documentation.
The advanced economies went the other way and instead of the ban chose the regulation of the ICO. Among them are Canada, USA, Singapore, Switzerland and Japan.
Only in the first seven months of 2017 through ICO, the company attracted a record $1.366 billion, so the state of these countries try not to stifle innovative financing model and to protect investors. For example, in Canada and the United States tokens equated to the securities and ordered the company to comply with the existing rules and the stock market.
While others, such as Switzerland, are betting on new financial technologies, and create a city of cryptocurrency companies like Silicon valley.