Labor Day – Bitcoin and Ethereum drop, China bans ICOs

I write for the finance and investment website ValueWalk. My post entitled What’s Behind The Labor Day Bitcoin, Ethereum Price Fall? is now online. Here is an excerpt:

The PBoC statement slammed the brakes on a large number of ongoing ICO projects in China, causing widespread consternation among investors who urged their clients and colleagues to sell quickly. This contributed substantially to the ongoing drop in Bitcoin and Ethereum Prices. The joint statement also said that “Individuals and organizations that have completed ICO fundraisings should make arrangements to return funds.”

The ruling does not prevent Chinese investors from participating in offshore ICOs, however.

To add further panic and confusion, the statement intimated that cryptocurrencies themselves may become illegal, since they are “not issued by the monetary authorities… do not have legal status equivalent to money, and can not [sic] and should not be circulated as a currency in the market use.”  Others have interpreted this statement as not pointing to a complete ban, but a great deal of uncertainty remains.

To read more, please click here.

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