SHANGHAI :
Chinese Bottom-Feeding Investors Still Active on Crypto Currency Market 24 Hours After ICO Ban
Yin Yi
DATE:  Sep 06 2017
/ SOURCE:  Yicai
Chinese Bottom-Feeding Investors Still Active on Crypto Currency Market 24 Hours After ICO Ban Chinese Bottom-Feeding Investors Still Active on Crypto Currency Market 24 Hours After ICO Ban

(Yicai Global) Sept. 6 -- Virtual money prices slumped across the board after China's regulators imposed a ban on initial coin offerings (ICOs), but some investors still want to take chances and are looking for bargains on crypto currency markets.

Of all the 580 digital currencies traded on global markets, 520 fell in value yesterday, per SOSOBTC's statistics, and the five biggest fallers had all plunged more than 50 percent as of 10.00 p.m.

The bitcoin price took another blow yesterday in the Chinese market, dropping 14.25 percent from over CNY26,000 all the way to an intraday low at CNY22,592.31. Litecoin and ethereum suffered even bigger losses.

However, the trading volume of all major Chinese platforms rose greatly in the past two days. NEO transactions at Jubi.com spiked 18.47 percent in 24 hours to hit CNY107 million yesterday.

An investor told Yicai Global he still felt confident in major crypto currencies such as bitcoin and the blockchain technology behind them, and he was prepared to take the chances despite the risks.

A bitcoin investor saw that the price of bitcoin fell to around CNY27,000 at 10.00 p.m. yesterday, he told Yicai Global. He then bought bitcoin and ethereum and thought it was a bargain, but both prices slumped further the following morning, and he had to buy more to drive down the average cost.

"ICOs are now banned, but I still have faith in blockchain technology and bitcoin's hash rate, and I believe it'll bounce back," the investor insisted.

The People's Bank of China (PBOC) and six national ministries and commissions issued a joint statement at around 3.00 p.m. yesterday, calling on related trading platforms to stop ICO activities forthwith. An initial coin offering is a form of unauthorized public financing that may involve illegal offering of coins, token money or securities, illegal fundraising, financial scams and pyramid schemes, per the statement.

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Keywords:   ICO,BLOCKCHAIN,Bitcoin