Bitcoin Forum

Hey,
I read this article in a blog that i follow on china ICO ban https://fxpmarkets.blog/2017/09/05/central-bank-of-china-all-virtual-currency-offerings-must-be-stopped-immediately/ (https://fxpmarkets.blog/2017/09/05/central-bank-of-china-all-virtual-currency-offerings-must-be-stopped-immediately/)
How do you think it will affect the market in the long term ?

since the "China's decision" were to eliminate all the scams from the market you can be sure that the effects of it will be great on the market. because it is the first step of many towards having a much healthier altcoin market instead of hundreds after hundreds of scams which call themselves ICO and prey on the gullible.

I can predict that many Chinese will start exchanging bitcoins to cash and stop to invest.
But in one day nothing changed, everything still remains the same.
Hope there'll be no big changes for other countries!

Nothing will happen. Bitcoin is not forbidden in China as I understood. And look at the price of Bitcoin. Its up again.

Bitcoin price is up again on 4300$ an it keeps grow up again. Also the ethereum price is now 311$ from 298$ that was a couple of hours ago. China banned only ICOs, it didnt banned cryptocurrencys because that is going to be very hard and they dont have a reason to do that

People in China can still invest in existing crypto like Bitcoin and foreign ICOs, which hopefully they will more now that they can't invest in local ICOs.

Actually, this is one of the typical cases when a short news leads to the high BTC volatility. Nothing will change - China just bans ICOs for Chinese companies and everybody can still mine and invest their cryptocurrencies.

Totally agree with you. Plus the rest of the country can also impose restrictions. Plus that fraud will be less, minus what startups can in principle disappear. And as a consequence with the courses as bitcount, and so Ethereum.

I guess this ban wouldn't last that long. Now that bitcoin is currently standing above all and it has it's potential to help a country's economy somehow. I think china is just sorting out those legit ICO's that would probably help them.

Not much. It only affects Chinese ICO. People in China can still invest in those made in other countries. Hopefully it would make the crypto environment healthier. At least with less new coins coming out, maybe the prices for existing ones can increase. For the US and Europe, I hope they just come up with regulations rather than outright banning ICOs like China did.

Europe will likely see regulation.

Now the Bitcoin prices have climbed back to $4,400+ levels. I hope that now the $5,000 mark will be achieved within a few days or weeks. But I am still surprised at the impact which the ICO ban had on the Bitcoin prices. I never expected the BTC exchange rates to go down, as the ICOs don't have anything to do with the Bitcoins.

yes i am agree with you stable coin never die in future but why did the ban from ico in china what's the reason actually. and how effect will be impose of its on all coin. this blog was china language that's why i can't understand.
thanks

The legality of competitively proof-of-work mined coins are not at all afflicted by recent events.

So prior rulings about the legality of Bitcoin are irrelevant to the issue about ICOs.

The difference compared to prior Chinese regulatory actions, is that this appears to have been a coordinated event amongst regulators in many nations.

And the ETH ICO madness was entirely out-of-control and risking naive investors’ funds in a plethora of scams. It became a new Xerox copy ICO every day scam. The nations had no choice but to act. And surely the SEC and other nations will follow. I think Asia acted first because their governments are less democratic and more authoritarian, so they can act quicker. The democratic nations will follow because their regulators have the same responsibility to their citizens. The wheels just move slower in the democratic nations. Asia is finely oil machine that is more efficient than the West now.

The issue is not exclusive to China. China, Canada (https://bitcointalk.org/index.php?topic=2127850.0), Russia, South Korea, and Singapore have warned about coming enforcement action. The SEC already recently warned in the context of The DAO. Obviously the recent events are coordinated between regulators in all these nations including probably the SEC.

Click here for a longer explanation (https://bitcointalk.org/index.php?topic=1558366.msg21515894#msg21515894) of why proof-of-work mined tokens are not investment securities and thus not afflicted by recent events.

The above link also discusses Ethereum’s ETH, Ethereum ICOs, and others.

It is also very important to note that pre-existing ICO-issued tokens, are illegal to trade and can be delisted from exchanges. Your home country can make it illegal for you to trade them. The above link explains this is more detail.

Please stop spreading the incorrect information, implying that ICOs will come back or that pre-existing ICOs can still be traded. Most people do not want to go to jail or suffer fines. Even if they regulate ICOs, these will only be tradeable on registered exchanges and will not be spendable as cryptocurrencies (i.e. not allowed to be traded decentralized). Thus these new regulated ICOs will not be very useful. It will not be the same.

Many shady exchanges and their largest traders are likely to suffer fines and threats of criminal prosecutions. Today is only the beginning of a massive global crackdown. The gears may move somewhat slowly but over the coming year there will be massive changes to the crypto ecosystem. All the hard-headed will have their fingertips burned up to their armpits as necessary for authorities to stop the rapid proliferation of investment securities scams.


There will be no greater fools to sell the ICOs to, when they are not legal.

The ICO scam model depends on selling to newbies who come in and believe these 100s of Xerox copy ICOs each have a chance to become the next Bitcoin or Ethereum.

Nobody is going to speculate on illegal ICOs, because there will be no mass market for them, thus no way to hype them.

And it is not just USA and China that are banning ICOs. Same as was the case for FATCA (a USA only law), it became enforced in every country in the world, because the USA threatened to penalize every nation that did not comply.

We’ve already got Canada (https://bitcointalk.org/index.php?topic=2127850.0), Russia, China, Singapore, South Korea, and the USA warning about ICOs.

You’d have to be blind to argue this is not a critical mass.

chinese people will buy cryptocurrency and ICOs in foreign websites.

Most of the daily trading volume comes from the china so when news of crypto will break out in china it can have direct impact on real market like the recent news regarding ban of ICO. Sooner or later all those chinese shorter who have sold crypto out of fear have to buy again which will fuel another bigger bull run.

it will be a very big effect in the market of crypto ..
china is one of the biggest investors they have so many brokers and good in developing sitees..
they are really brilliant in business and great in counting numbers ...
we feel the impact of china days ago when all the coins got dump... but still thanks to RUSSIA and there bank for having the crypto stronger now as they release the news on supporting and have the fist ICO to release on their country :)

yes that is right and we have a very good example of it as we can see that the price of bitcoin came down from 4900$ to 4000$ which is in fact a big decrease in the price of bitcoin, but now we can see that the market is now recovering its position and hope that very soon it will start trading in a normal mood.

I think China is trying to act reasonably. Let's be honest, 99% of ICOs are just outright scams. Of the remaining 1%, 99% of those are bad ideas. Assuming the news is real, China is acting to stop people from losing their money by investing in something they don't understand. After all, if you understood crypto you would not even touch alts.

Here is a typical way an ICO tricks users into thinking they are "investing".

Step 1. Create "Stupid-Coin", bitcoin's soon to be replacement.

Step 2. Pre-mine 1 million coins.

Step 3. Sell 1 coin to your buddy for $3.

Step 4. Advertise your new ICO! And mention that it has a current market cap of 3 million dollars!
(market cap = cost per coin x number of coins)

ICOs are all B.S.

The investing in ICO is dangerous by itself. It is not a secret that ICO is a bubble atm (most of them). Sooner or later people will incest more wisely and it will bring significant changes. The china's ico ban may only do it faster (as they plan) but everything seem to be fine now.

Pretty good analysis on the matter. The thing you forgot to mention is that there is crazy money to be made so people who are already into crypto will keep hoping for their diamond to show up and pay for all their losses. That's the danger of it.

This.

Bitcoin is still safe and Chinese goverment won't ban it. They know that Chinese miners are the leading force that gives China an edge in the cryptocurrency world.
ICO ban is actually something I was expecting, panic on the market is only temporary and with no more ICO chinese investors will focus on existing coins, bitcoin included.
This will only strengthen the position of bitcoin in the long run. I am not worried at all. We have a bright have future ahead gentlemen.

I may look at this incident to be in a positive way that ICO's must change or else someone will. I think more people in China will get more knowledge to know first before investing their money and this is a good sign of prevention in their part and there is nothing to worry about, losing your hard earned money is frustrating so this move is a must.

Yes, China is doing the right thing at the moment because today's ICOs are full shit!
I can't believe why some people use such opportunity of creating ICO to scam others. 
Believe by banning ICOs in China that will help straighten the value of bitcoin in the long run.

I hope so that China's decision to ban ICOs have positive affect. I think there has been a flood of ICOs in the recent past and most of them have been scam and for that to stop there should be some regulations no ban is required though but if the government make some rules and regulations for ICOs so as to save the people from being robbed of their money that would be a welcoming move I think.

We'll see a panic period and then people will reinvest in the drop period and I see crypto climbing again soon enough :)

My thoughts exactly. Let's face it and admit the fact that it is easy to create ICOs and most likely are scams. I think China did the right thing. It's not a good thing that many were victimized by those fake ICOs. It will lead to lost of trust in cryptocurrencies and those people who are yet to explore crypto world will be wary and might not believe in any crypto forever. And that's not a good thing for everyone.

what China does is no longer affecting the market that much. it was proven that China does not have any power over this market at all. they just are a small part of a bigger world.

the news however is a different matter. the news can cause panic among investors. and it has been doing just that for a very long time. of course this year the power of news has also diminished as PBoC closed the exchanges.

No doubt the Chinese decision will affect the market for accepting and regularization of bitcoin. And I think that every country should accept bitcoin as their legal and regular crypto digital currency and then take some serious steps for promoting and easily usage and to control all other scams in the shape of crypto currency. It will help the people a lot and they will freely deal in bitcoin.

Apologies for starting another topic on the same subject as I missed this one. If China bans the exchanges from operating then that must just be an admission from the Chinese authorities that they are incapable of handling the issues and regulating it effectively.

Before 2017 China was the world's largest bitcoin user, but the government of China banned bitcoin and crypto making the biggest bitcoin users become Japan, now the Chinese government legalizes bitcoin and this will have a big impact.

I think china doesn't make too much a big part in cryptocurrency backing now, sure banning ICOs restricts local development but its still easy for them to get out and open another hub in other countries, previously the gold rush make tons of short businesses for mining and now they are dumped hard and the buying power is somehow equivalent with korea, too many uneducated person involved and they wont get back nor care with the wind is over. Its only happen when market start raising and they would pour money in

I think because we are not seeing adequate patronage and support from China just like Korea is even affecting the rush after China banned ICO. The population of China is massive and that can actually turn around a products fortune.

I believe, for now this will not have much influence. Because I think, ICO does not have a direct connection to the price movements of bitcoin. So that there will be no negative impact on bitcoin

For all the marbles:

https://www.ccn.com/bitcoin-is-1-trending-on-chinas-biggest-search-engine-during-2019-highs

So there are still lots of Chinese investors hot on the trail of bitcoin. And I'm sure majority of them joined the ride during the sudden spike right after April Fools day.

Whether OTC trading or just simply Peer-to-Peer, and regardless what the Chinese government stance of crypto specially on bitcoin, the madness can't be stop specially that we are in the recovery process.

China's central bank calls for banning ICO activities in general, and not just fraudulent projects, arguing that they are detrimental to China’s financial stability. This is not very convincing, given that they began to impose restrictions on cryptocurrency in 2017 and prohibit it with the same wording. It would be better if they started to regulate ICO and get rid of fraudulent ICO projects. Otherwise, the Chinese will be involved in them all the same, but in those that are held outside this state.

During the time when this post was made , there were a lot of banning actions on bitcoin and cryptocurrency in some countries. This virtually is what led to some countries being banned from participating in their ICO by project owners. China is one of them. But a surprising thing is that the many of this ban actions seem to me like a game because after a while they wil unban and then bam again and unban and such it goes. All these just have little effect on the market.

The crypto market is tired of China. That country has crashed the crypto prices so many times, that nowadays we normally ignore any news coming out from there. And the exchange rates show no impact from the latest news.

I agree. They've been against crypto ever since and yeah what they're doing did affect the market for a time, but not anymore. I guess the longer you've been in crypto the less you'd care about the likes of china and warren buffet. They can say everything they want but the effect gets less and less.

This was a thread that was created years back in 2017, by that time the contribution from China is big. With their support only bitcoin have grown to such a big level. They were the early supporters, recently they have made a big change in their decision as more scams have emerged along with more economic collapse through fake volume. By now China's decision won't make a big impact on bitcoin from my view.

It is possible that the first reaction will be negative, but after then the market may more favorably refer to the actions of the Chinese regulator. By and large, the ICO sphere should be adjustable, because there is a lot of scam in it. And this is not only because of the bear market, but also because many projects just want to raise money and disappear. Some teams just do not have enough experience, etc. Having regulation projects, any team that wants to create a product will be more responsible in its work and know that they are accountable to regulators.

Like playing in a fair gaming site (https://vegascasino.io/casino/video-slots/durian-dynamite?utm_source=ccdd), every asset you lose will affect your gameplay, even how small or big the asset is. China, we all know how big that country is and how enthusiastic businessmen there in cryptocurrency before, it will surely affect the market as a whole.

It will makes those ICO haed to reach theor goals during ico or pre sale. We all know that country have a lot of population, lotscof potential investors.

ICOs in basically every case were a means of pushing a shitcoin or some cookie-cutter token which was designed to make a ton of money for the "devs" of the respective blockchain. I really cannot see a tangible benefit from most ICOs, especially when you consider that they were never really used as a means of promoting a token to make it better. All the good altcoins and tokens I can think of were released as a complete version, while I can't remember any that started as an ICO.

Regulating the projects isn't necessarily required, nor should it be, people just have to stop buying into literal scams which give those who "buy in" a token that can magically be gifted from thin air.

This topic already old and I think what ever the decision of the China about banning ICO and banning all related cryptocurrency we don't care because we can increase cryptocurrency and become popular without them. I see a lot of news China banned bitcoin which is some effect but we can prevent that if we still support the crypto.

OP posted this in September 05, 2017 when the banning of ICOs was the trend. Since then we saw a drop of more than 80% in the Bitcoin price, but I would not credit China's decision to ban all forms of ICOs to the massive drop in the price.

I would add that a massive Crypto currency advertisement ban on large social media platforms has caused most of the drop in the price, since then and we are only now seeing a small recovery in the price.

So YES, the Chinese bans on Crypto currency based ICOs had a influence, but it was not as significant as most predicted.  ;)

i disagree.
you are saying it yourself, China ban of ICOs and that has literary nothing to do with bitcoin! 90% of the ICOs or maybe even more, are being invested in using Ethereum not bitcoin. so banning ICO only affects ETH price if anything.
besides bitcoin was in a bubble when it reached $20k and it needed to burst and come down, maybe not this much (80%) but it needed to come down nonetheless. so that is another reason why you can't say the drop was because of China

I believe that Chinese sectors couldn't ban bitcoin that long.
If they would ban it permanently, it will have a big impact in cryptocurrency because China has the most number of crypto enthusiast. However, we all know that they would still do something to pursue investing and trading since it's the best way to attain financial freedom for them.

In terms of volume I think It would really affect the market but I we're not sure about it this is just my perception and with that large number of users (volume) not just the market will be affected but I think the circulation too since  for what I've known there are also a lot of miners that based on the China.

we're not sure about it but I'm hoping that it would not make a big impact for long term market.

ICOs and IEOs are the main reason causing investors to get scammed. Project managers are just interested in creating new tokens and coins rather than developing products that will help solve real problems in the real world and the crypto ecosystem. The ban of all ICOs and IEOs will help reduce the number of scam projects been launched everyday in the crypto ecosystem. This might even help clear FUDs and increase the adoption of the use of cryptocurrencies and bitcoin..

It may affect also but not directly or that huge. Most likely it will affect in their country. But somehow people in China can still invest in other countries. That's the beauty of crypto investing since its a worldwide involvement, no restrictions or jurisdictions somehow. China is still very influential country so nevertheless there are possible effects also in their decision.

china's country to make a decision very strictly forbid ico in their countries so that the Chinese people do not be fooled by the name ico. ico too bad because the Chinese government to take appropriate measures to prohibit ico. China's government recently has supported blockchain technology and the effect is quite good with the rising price of bitcoin.

In terms of ICO I see china is doing a good step in limiting ICO participation in their country. We all know how risky it is to invest in anonynous ICO especially because of scams and frauds. Their involvement in the improvement of the blockchain technology do really helps holistically to the world in developing better platform that may inspire us to have. But one thing China has a big impact into is regarding to investment in cryptocurrency. Basically I am waiting for them to promote utilizing cryptocurrency as I believe their population has a big impact to the market especially to Bitcoin. If time comes, I'll view it as an opprtunity to buy more.

For me, this is nothing but an international politics, China and America are playing very idiotic game plan so we don't even know how this situation will get reserved and opposite, You know that China president recently declared that Blockchain system is very friendly for the new invention so don't be panicked because a lot of Chinese people are already got involved in this platform, So China will not take any decision which is harmful to their own people, I think it's just a matter of time that China is going to open a new window for the Blockchain system, so this type of news doesn't bring any a huge impact on this platform.