Recently, the People's Court of Songjiang District, Shanghai, heard a dispute case caused by the validity of a virtual currency issuance and financing service contract. This case reveals some potential risks and challenges in the blockchain industry.

The protagonist of the story is an agricultural development company (hereinafter referred to as Company X), which came up with the idea of ​​issuing virtual currency for financing during the ICO boom in 2017. So, they signed a "Blockchain Incubation Agreement" with an investment management company (hereinafter referred to as Company S), commissioned Company S to prepare a white paper, and planned to issue tokens based on mainstream blockchain technologies such as Bitcoin and Ethereum.

However, things did not develop as Company X expected. A year later, the token issuance has not been completed. Company S informed Company X that the issuance of tokens requires the development of the corresponding APP first, and this part of the development is not within the scope of their services. Company X was disappointed and took Company S to court, demanding the termination of the contract and the return of the service fee of 300,000 yuan.

The judge of Songjiang District People's Court pointed out that although virtual currency, as a virtual commodity, has property value and it is not illegal for individuals to hold it, commercial entities need to be cautious when participating in virtual currency investment transactions, especially in the self-issuance of tokens.

This case reminds us that in the field of blockchain and cryptocurrency, although opportunities and challenges coexist, we also need to remain rational and cautious. For enterprises, it is particularly important to understand relevant laws and regulations, clarify contract terms, and choose the right partners.

Friends, what do you think of this case? What do you think is the most important thing to pay attention to in blockchain investment? Welcome to share your views and experiences in the comment area! 📈