PBOC (People’s Bank of China) announced that they will prohibit any new ICOs and will ask the ones that already took place in China to refund the investors. The centralized country has outlawed all ICO sale exchanges based in mainland China.
This news has effected the entire crypto market. Bitcoin’s price fell almost 10% and Ethereum fell more than 15%.
NEO, the most well-known and successful blockchain company originated in China, issued a statement offering a refund for ICO participants. The supposed “Ethereum of China” lost over 25% following the release of the announcement. At press time the coin is trading at $22.52
The news came amid a bull run where Bitcoin was ready to pierce an all-time high in the $5000 levels.
Many have argued that the progressive aspects of decentralization in blockchain technology is not consistent with what the Chinese government would want. This raises questions about the long-term implications of China and blockchain technology.