Chinese Blockchain Projects Raising Funds Despite ICO Ban

How Chinese Blockchain Projects Raise Funds Despite the ICO Ban

Initial Coin Offerings (ICOs), the cryptocurrency edition of crowdfunding, aided several Chinese blockchain startups to increase faster financing this season but also contributed to China’s clampdown on ICOs. In the modern show, we’ll take a glance at just how Chinese blockchain companies increase money following crowdfunding platforms have been closed down.

Creating Closed Project Groups

Chinese Blockchain Projects Raising Funds Despite ICO Ban

The MDT team does not utilize any PR solutions to achieve as many individuals as possible on the planet. Rather, they just create a Wechat set and send staff members an email describing investment details. To attract investment, they guarantee 25 percent bonus to early bird investors and tokens bought will be unlocked at 30 times when MDT is recorded on exchanges. Sound enticing?

At the time of writing, there continue to be less than 400 men and women in the category. An investor advised us that:

The project is really slow. They have been raising for over two months. Ever since exchanges were shut down, most investors just want to sell tokens they already have on hand. They don’t have much enthusiasm for new projects.

Big Initial Exchange Offerings

Mixin is an EOS-based real-time communication tool that may transfer coins employing end-to-end encryption, based on its official site, the job has a 1,000,000 XIN token cap. One of that, 500,000 XIN is going to be reserved for the Mixin team. 400,000 XIN is going to be listed as a XIN/EOS trading set on BigONE without price limit from November 25 until December 25. Orders will be implemented based on price-time priority as received by the Bigone matching motor. The sale will end as soon as 8,000,000 EOS have been matched. Investors jokingly call this kind of crowdfunding ‘Initial Exchange Offerings’ (IEOs) that synchronize token sales, token distribution, and tokens being listed at exchanges.

The rest of 100,000 XIN is going to be sold to whitelisted users following Dec 25 at the bottom Bigone price. Register on the stage with your contact number and you’ll get an invitation code along with a link. Send the URL to others and if anyone registers with your invitation code, then both you and the invitee will get a fixed share of the whitelist quota. Additional invitees of invitee may also credit some stocks to the original inventor, up to 7 degrees.

How Chinese Blockchain Projects Raise Funds Against the ICO Ban

That is the reason why invitations with hyperlinks to enroll Mixin happen to be clustering all wechat bands these previous two days. Group members whine that this sort of advertising reminds them of Ponzi schemes, particularly since the job has not published any information concerning the development group and roadmap, maybe not even a whitepaper.

ICOs or even IEOs, some jobs rule out such efficient strategies to get whopping financing. Nerthus is a Shenzhen-based blockchain startup which employs the Directed Acyclic Graph technologies (DAG) to make an international blockchain programming platform, ” it states. BD director Erica Chen clarified to news.Bitcoin.com which they’re seeking support from conventional investors. “These investors do not know a lot about blockchain. We must devote a good deal of time describing to them. However, at least we won’t grab the interest of authorities.”

 

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