Regulators send severe signals to ICOs; Bitcoin China suspends ICO coin transactions

[TechWeb Report] According to Fortune Beijing time on September 3, the price of Bitcoin briefly broke through the $5,000 mark on Friday night Eastern Time in the United States. However, in the following hours, the price of Bitcoin fell by 5%.

However, after the ICO project platform ICOINFO announced the suspension of all ICO business on August 30, Bitcoin China, one of the three major Bitcoin trading platforms in China, issued an announcement last night that it would suspend ICOCOIN (hereinafter referred to as ICO coin) recharge and trading business from now on. Bitcoin China stated that it will suspend ICO coin withdrawal business at 6 pm on September 3, and users are requested to withdraw the ICO coin balance before 6 pm on September 3. ICO coins have been online on Bitcoin China for less than a week.

ICOCOIN (ICO Coin Network) is a trading platform focusing on blockchain assets. The tokens it issues are called ICO coins, with a total of 200 million. Among them, the development and operation team accounts for 30%, private investors account for 10%, ICO (i.e. issued to ordinary investors) accounts for 50%, and PoS lock-up accounts for 10%. ICOCOIN's goal is to make ICO coins the third currency accepted by ICO crowdfunding after Bitcoin (BTC) and Ethereum (ETH). Regarding Bitcoin China's suspension of ICO coin recharge and trading business, ICOCOIN announced: "It will support crowdfunding and trading of various ICO projects around the world. It is committed to making ICO a reality with ICOCOIN and will allow ICO project tokens to be simultaneously launched on ICO Coin Network for global trading." Yang Linke and Huang Xiaoyu, the main members of the ICOCOIN project, are also co-founders of Bitcoin China. In June this year, ICOCOIN tokens were launched on TokenCapital, Bijiu, and ico365 platforms, and 100 million tokens were sold in 3 minutes. According to the ICOCOIN white paper, the reporter estimated that the cost price of an ICOCOIN project is about 1 yuan.

Data shows that ICO (initial public cryptocurrency offering) is essentially a financing behavior. The project leader issues crypto-tokens to unspecified investors to achieve the purpose of financing the project. The latest data shows that the cumulative financing scale of domestic ICO in the first half of 2017 was 2.616 billion yuan.