The cryptocurrency world in 2017 seemed to be in a different dimension from other industries. An ICO hurricane swept the cryptocurrency world, which led to rare social chaos for a time. Some issuers, investors, and media made a fortune, but this astonishing profit diverted funds from the real economy and posed huge financial risks. Eventually the state intervened.
On September 4, 2017, the People's Bank of China and seven other ministries and commissions defined ICO as illegal fundraising.
[Central Bank and other 7 ministries and commissions: ICO is an illegal public financing behavior and should be stopped immediately]
On September 4, the People's Bank of China's official website issued an announcement stating that it is necessary to accurately understand the essential attributes of token issuance and financing activities. Token issuance and financing refers to the financing subject raising so-called "virtual currencies" such as Bitcoin and Ethereum from investors through the illegal issuance and circulation of tokens. It is essentially an act of illegal public financing without approval, and is suspected of illegal issuance of token tickets, illegal issuance of securities, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities.
As soon as the big move was made, Bitcoin plummeted by 32%. Many people fled the cryptocurrency circle like birds and beasts. Many people lost their faith during this period. The wildly growing virtual currency was included in the strong financial regulatory framework, and the "crazy wealth creation" ICO began to end.
On September 15, the Beijing Internet Financial Risk Special Rectification Leading Group Office issued the "Requirements for Cleaning Up and Rectifying Virtual Currency Trading Venues in Beijing", requiring exchanges to suspend all transactions on September 30. Bitcoin hits bottom.
Affected by the policy, ICO platforms were closed, ICO projects returned tokens one after another, and a wave of digital currency selling was triggered, causing a large number of investors to suffer heavy losses in assets, and even lose all their money. Various tokens fell below the issue price, with the highest drop exceeding 90%. More than 80% of the funds in the cryptocurrency circle evaporated overnight, which can be called the darkest moment.
Facing the scythe of regulation, a large number of domestic exchanges have closed down or moved overseas to evade regulation. As the saying goes, "Misfortunes often come from the bottom of our hearts, and blessings often come from the bottom of our hearts." This move ushered in a new era of coin-to-coin trading and over-the-counter fiat currency trading. Exchanges returned to China to continue trading through coin-to-coin trading and over-the-counter fiat currency trading. Binance also took this opportunity to achieve a super counterattack and stood on the top of the exchange until today.
[Off-topic] Pure nonsense version
It is definitely not a bull market now. The market has cooled down to a certain extent. I don’t know why, but I always have a feeling that a storm is about to come. The cryptocurrency circle may be undergoing a major change.
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