PBoC Says It Has Discovered Hidden Tactics Used By ICOs - Vows To Clamp Down

Wilfred Michael 

Wilfred Michael

Reporter

05 November 2018,
21:06
PBoC Says It Has Discovered Hidden Tactics Used By ICOs - Vows To Clamp Down

The People’s Bank Of China has become aware of the increase in the number of airdrops and will make a move to reduce this trend according to its Financial Stability Report released on Friday. This will be part of recent efforts made by China’s premier bank to crack down on the sale of ICO tokens.

According to the document, ‘disguised’ ICOs in the form of airdrops were now becoming widespread in the country even though citizens have been warned severally to desist from investing in such projects.

The PBoc also said it has become aware of tactics used by ICOs to raise funds rather than the usual public sale format.

These strategies include moving their projects overseas and using agents to invest on behalf of Chinese and also giving out free tokens out of the total token supply. For the latter, the PBoC alleges that the crypto startups would now use market speculation to raise the prices of the tokens and make profits through this way.

Statistics made available in the document revealed that in 2017, ICO’s raised around 2.6 billion yuan ($377.3 million) in China using the public sale format, but the norm has changed with the outright ban they placed against ICOs.

 

Tightening Up Against ICO Hidden Strategies

In the light of their new discoveries, the PBoC has vowed to work more closely with other regulatory agencies in other to provide supervision for the crypto industry and protect investors.

No information was given away on how the body will go on to achieve this as this would potentially mean making ICOs aware of their next step.