What's new in the ICO world?
Literally every day something is happening in the world, every minute we hear more and more news, especially if it is news in the very demanded blockbuster industry and crypto currency.
Everyone who has been even a little interested in this field knows exactly the term ICO. Recall, in the literal translation, this is the «primary location of tokens» (or, in other words, «virtual coins»). The scheme is very simple: Internet tokens are sold for established crypto-currencies (or, as an option, fiant money — the euro, dollars) among all investors. And already in the future there is an opportunity to trade them on the exchange or to exploit bought coins in the project as its domestic currency. Undoubtedly, the ICO project in its time became popular in a few days, because it attracted funding and created a full-fledged infrastructure — investors knew that by investing in this money, they receive further profit from sales of the same crypto currency at the highest price (up to $ 500), and services with independent direct use of tokens — on the lowest.
ICO initially had a huge advantage over a similar IPO (which implies an initial public offering of shares), because one token could be bought for a minimum amount of a couple of cents, which subsequently attracted people of different social classes. So, for example, Brave project for 30 seconds can reach the goal of $ 34 million, and Status — in $ 100 million! From these figures and opportunities began ICO «boom» or as many would say — «fever».
But not everything is as perfect as always, in any sphere there are pitfalls. But no one is immune from fraud, especially if the creators of a new project pursue only one goal — to raise money from participants (many call it the famous «Russian roulette»). In addition, until recently there were no relevant laws, therefore, such transactions were conducted only «on the trust of the parties», investors believed only in their luck.
Why do we say «until recently»? Because China has already banned the use of ICO. Just two weeks ago, the People's Bank of China (NSC) ordered that the country's original proposals for coins be banned (the first similar attempt was in the distant 2013, but then the government did not decide anything), arguing that it was illegal earnings money, and obliged already existing depositors to return the money. Do not forget that while in China, about 15% of the ICO market was located. Based on the reactions to the ICO in other countries (it should be noted that it was in China that 65 ICO transactions with more than 105,000 users totaling $ 395 million already passed this year) is the first experience of any official ban in the field of crypto-currency .
This ban entered into force immediately after its approval (last weekend). After that, the planned large-scale ICO conference was canceled, which was to be held in Beijing. Further, an important conference was canceled, which also had to be held in Beijing. It was planned to discuss the world of crypto-currencies, which was forecasted to end with a film about the growth and success of this sphere from scratch to the fall of 2017. Everyone who had anything to do with the world of tokens and mining took the news extremely negatively (except for those who initially considered this type of income a «lottery» and were afraid to start).
After that, the world actively began to discuss the current situation, everyone expressed their opinion. Someone argues that this is only the beginning, and in the future as the People's Republic of China will take stricter control over the virtual currencies, and other countries (in particular, Russia, the United States) will raise this issue. Uni believe that this happened only for one reason — the PRC plans to set an example for other countries, and when all is over, they will begin to buy their own bitcoins to start the market from themselves.
Others are sure that we should not worry — this, of course, is not a bluff, but, in simple words, it is stupidity. After all, it is in this way that the government can attract large investments into its economy. The point is that after seeing what amounts turn into the mining industry, any government, naturally, wants to take it under its control, that is, legalize.
Experts also argue that such actions on the part of China will lead to the fact that investors will simply switch to other Asian markets, or to Russia. And after that, the PRC authorities will «change their mind» and again allow ICO projects, while restoring the inflow of «their» investors. It is also believed that once the ICO sphere becomes official, it will become less profitable. After all, then various exchanges will be connected to it for all cities, pension funds, exchange banks (now they are in the «waiting» mode), and this will scare away any investors.
So, how does this end and what to expect tomorrow? Time will tell, and now only one thing is clear — in the near future the crypto industry will not disappear anywhere.