China state media reports “rampant” token sale even after ban imposition by Central Bank 9749
Bitcoin News
Ashmita Dutta
May 23, 2018 at 2:11 PM

Despite imposition of ban on cryptocurrencies in China, the state media, CCTV (China Central Television) reports about “rampant” ICOs token sale. This ban was imposed by the Chinese government in September, 2017.

CCTV, the mouthpiece of China’s governmental authorities, in this Financial News segment reported this news. It stated that the ban by the People’s Bank of China could not curb the local investors from buying tokens. In contrary, the spirit of attaining quick wealth through token purchase has been deeply rooted in the minds of the investors.

CCTV even exposed the prevalence of “air coins” in the domain of cryptocurrency in China. Air coins are nothing but tokens based projects which are not supported by businesses with legal registration.  It is estimated that after the crackdown of ICO, there has been 30 times rise in the coin number.

According to the Financial News segment of CCTV, “"While many business entities have moved their projects overseas following the ICO ban, a lot of these 'air coins' carried on fundraising in China without migration because they are loosely organized as a temporary team, not even a formal business entity."

The report stated that in order to manifest the legitimisation of these projects, they establish links with prominent crypto investors like Li Xiaolai. Li has been an investor of bitcoins and a Chinese evangelist.

According to Li, “99.99 percent of the time, I'm being associate with these projects without even knowing it. There's always this fear of missing out (FOMO) among investors. And when they can't make judgments by themselves, they tend to refer to whoever influential is associated with the project,"

The report represents the recent endeavour of CCTV to promote awareness among the masses about the chaotic ambience in crypto market. Such a revelation has been broadcasted when the Chinese legal authorities are taking stringent measures against schemes involving tokens. A recent event witnesses the detention of Shenzhen and Xi’an, organisers of crypto projects for allegedly raising funds.

(Image source: Shutterstock)

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