Price of Bitcoin Drops after Chinese Ban on ICOs

Chinese Ban

A new Chinese regulation made a decent-sized splash in Bitcoin prices this past week. Prices dropped roughly 5% after the Chinese government banned the use of ICOs.

What are ICOs you ask? Well ICOs (Initial Coin Offerings) allow startups to raise investments by selling cryptocurrencies in exchange for cash. Most of the world has yet to crack down on ICOs, but China found them to be a form of illegal fundraising.

Photo Credit

Experts do not see this ban to be a major issue and expect prices to rise again shortly. Before the announcement, Bitcoin was trading at $4,584 which then tanked to $4,350.

A move like this is not new for China. Announcements earlier this year warned that use of cryptocurrencies could constitute as anti-money laundering.

Regardless, many investors and experts believe we will continue to see a continual upward spike in Bitcoin prices for some time.

Tweet @StarterNoise to tell us what you think about this price drop in Bitcoin.

Facebook Comments