The changing world of ICO: What are the prospects for blockchain and virtual currency?

There have been many major events recently, ranging from political and economic news to social news. However, among these many hot events, "ICO ban" has carved out a path and become the focus of heated discussion inside and outside the circle.

On September 4, the People's Bank of China and seven other ministries and commissions issued the "Announcement on Preventing the Risks of Token Issuance and Financing" (hereinafter referred to as the "Announcement"), defining ICO as "an act of illegal public financing without approval, suspected of illegal sale of token tickets, illegal issuance of securities, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities." It also stated that from the date of the issuance of the "Announcement", all types of token issuance and financing activities should be stopped immediately.

The financial and Internet circles have launched a heated discussion on this, not to mention the experts in the field of blockchain and digital currency. Even the "grandpas and aunties" who know nothing about digital currency have taken center stage. After all, in the previous crazy ICO financing projects, the money in their hands has become the main target of various scammers.

In fact, more than a week ago, the market was circulating news that ICO would soon be regulated. At that time, blockchain experts in the circle of friends said that they hoped blockchain would quickly distance itself from ICO. ICO had become crazy, and it was only a matter of time before the government took action.

A few days later, the Notice was released. The regulatory stick came faster than people expected and was stricter than the market expected. From the current situation, it is more ruthless than regulating the market, and it is almost the end of the entire industry. As soon as the Notice was released, digital currencies such as Bitcoin and Ethereum plummeted. Although there is a voice saying that this is actually a good thing for virtual currencies, the government's regulation of you means that you are recognized. But in the medium and long term, it may be difficult for Bitcoin and Ethereum to turn around. It should be noted that the Notice clearly emphasizes that financial institutions and non-bank payment institutions are not allowed to provide relevant financial services for virtual currencies.

[[203271]]

Once upon a time, blockchain and digital currency were things that only "trendsetters" played with. The legendary "chain circle" and "currency circle" were all knowledgeable investors. Although the circles were small, they all did reliable things. Although the regulatory authorities did not explicitly affirm it, they basically regarded it as a new technology and a new thing and took a wait-and-see attitude.

But in the second half of 2016, things became uncontrollable. ICO gradually penetrated from a niche group to the mass market, and the amount of financing experienced explosive growth. Investors who entered the market were all looking for speculation. ICO went from being a financing tool for start-ups to a paradise for scammers to make money and raise funds illegally.

It is worth mentioning that, as ICOs become more and more popular, blockchain has been increasingly used in the field of applications. Its commercialization has been favored by mainstream financial institutions and Internet giants. Gradually, the once interrelated blockchain and virtual currency have gradually become two relatively independent circles. Now it seems that blockchain has been recognized by mainstream institutions and has entered practical applications. However, it is unlikely that virtual currency will be able to get out of the dual crisis of "regulation" and "trust" after the ICO "incident" in the short term.