Decline in cryptocurrencies after Chinese Central bank ban all ICOs

China's central bank bans all ICO (initial Coin Offering), or in other words, initial "public" offerings based on Blockchain. This is an approach often used by technology startups, with the process resembling the classical primary public offering of shares, except that this does not happen on a regulated market, but instead of shares are using crypto-points.

The Chinese National Bank said on Monday that it had completed an investigation into organizations using this method and ordered the funds to be returned and ordered that such ICOs would be unlawful and subject to fines.

All this comes after uncontrollable growth, which is currently gaining nearly $1.6 billion. According to the Chinese National Bank, this is a threat to the current financial system in the country, and not just to it. ICO's are widely seen as a way to bypass venture capital funds and investment banks, thus threatening them.

After the announcement of the new Bitcoin dropped by 7.2% or the most since July. Ethereum declined by 6% and Litecoin traded by -9.2% lower.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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