Authorities in China have reportedly emptied and sealed up offices belonging to GXChain, a 2017 ICO startup whose token once reached a market cap of over $600 million.
The update shared on Twitter by Dovey Wan, a founding partner of crypto holdings company Primitive Ventures contained an image of the sealed office as well as footage revealing that the building was empty.
However, Wan suggested that the project is legitimate, unlike many 2017 ICOs. She tweeted,
“I have no idea why the police took action against GXChain instead of 10,000 other Chinese scams, as GXChain has a real business behind. The trigger might be their data business — they sell processed personal credit data, which is a highly sensitive area now in China.”
Notably, information on the GXChain website agrees with Wan’s assertion, stating that the startup developed “a fundamental blockchain for the global data economy, designed to build a trusted data internet of value.”
Meanwhile, in a follow-up, Wan cited a source close to the Hangzhou local authorities as revealing that “all executives of GXchain are now with the police for interrogation.”
BREAKING— Dovey Wan 🗝 🦖 (@DoveyWan) September 11, 2019
Another high profile 2017 ICO project GXChain $GXC just got clamped down by the Chinese police
GXChain was a very hot ICO back in the days with ATH market cap over $600M (even now still holds $48M) and considered to be among the very few legit ICOs ... pic.twitter.com/6uUPBx8og9
GXChain Token Slumps Amid Uncertainties
As one would expect, the news of the company’s shutdown and the ongoing crisis has reflected heavily on the market value of the GXChain token which as mentioned earlier reached an all-time high above $600 million and a price near $10 per token.
At the time of writing, however, the token had a value of $0.55 with a market cap just above $37 million. Further, Coinmarketcap data shows that the token is down near 20% on the day with a steep decline in early August marking the beginning of its newest free fall from glory.
In a similar development last month, Stmarket.co reported that under probe $22 million ICO, Vanbex sold its intellectual property to another startup, Hyperion.