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Briefing
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- ICO Ban – China’s central bank, People’s Bank of China, declared raising funds through initial coin offerings (ICO) illegal in country, issuing order to halt trades immediately
- Initial Coin Offering (ICO) – Crowdfunding where investors are offered newly issued tokens, instead of ownership shares, that can be used for trading or availing products offered by company
- Refund Order – Ordered companies that have completed ICOs to return funds to investors
- Affected Organizations – ICO platform ICOINFO suspended services, while Bitcoin exchange BTCC stopped trading of ICOCOIN
- Bitcoin and Ethereum Price Decline – Bitcoin’s price declined more than 5% at trading Monday, September 4, 2017, following announcement, with Ethereum down over 12%
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Accelerator
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Market Disruption
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Sector
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Financial Services, Information Technology
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Organization
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People's Bank of China
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Source
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Chen, L. and Lee, J., "Bitcoin tumbles as PBOC declares Initial Coin Offerings illegal",
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Vigna, P., "Bitcoin drops after China bans ICOs",
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Choudhury, S., "China bans companies from raising money through ICOs, asks local regulators to inspect 60 major platforms",
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AcceleratingBiz analysis
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Original Publication Date
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September 4, 2017
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