The police in China have carried out one other raid on a cryptocurrency undertaking, sealing up workplaces belonging to the GXChain (GXC) undertaking.
Well-Known 2017 Cryptocurrency Project Targeted by Police
Tweeting on Wednesday (September 11, 2019), Primitive co-founder Dovey Wan revealed that the Chinese police has taken motion in opposition to GXChain.
Another excessive profile 2017 ICO undertaking GXChain $GXC simply acquired clamped down by the Chinese police
GXChain was a very popular ICO again within the days with ATH market cap over $600M (even now nonetheless holds $48M) and thought of to be among the many only a few legit ICOs … pic.twitter.com/6uUPBx8og9
— Dovey Wan 🗝 🦖 (@DoveyWan) September 11, 2019
According to Wan, GXChain was one of the key Chinese preliminary coin choices (ICOs) in 2017. The undertaking even reportedly amassed an all-time excessive (ATH) market capitalization of greater than $600 million.
Chinese authorities did ultimately place a blanket ban on ICOs and crypto buying and selling in September of 2017.
Wan additionally revealed that in contrast to some of the current crackdowns by legislation enforcement focused at recognized cryptocurrency scams, GXChain was regarded as one of the extra professional crypto companies in China.
In reality, the undertaking ranked 5th within the July version of the CCID blockchain rankings with a complete index rating of 110.7.
Might Not be Crypto-Related
However, Wan did state that the police motion is likely to be related to the actions of the enterprise behind the undertaking. According to Wan, the enterprise did promote processed private credit score knowledge which is reportedly a “sensitive area” in China.
The information of the GXChain crackdown comes swiftly on the heels of quite a few revelations of exit scams and Ponzi schemes tied to cryptocurrencies in China.
As reported by Bitcoinist, the PlusToken managed to rip-off buyers of greater than 200,000 BTC and 800,000 ETH.
Back in August, Chinese police started investigating cryptocurrency buying and selling platform EtherDelta over an alleged exit rip-off.
The platform initially incurred a large advantageous from the United States Securities and Exchange Commission (SEC) earlier than being bought to Chinese buyers.
GXC Price Plummeting
Data from CoinMarketCap exhibits a major worth drop for GXC tokens. As at press time, GXC has declined by greater than 17% within the house of just a few hours in all probability as a consequence of as we speak’s growth.
The 90th-ranked cryptocurrency has a market capitalization of greater than $41 million. Bitcoinist will proceed to watch the state of affairs offering updates alongside the best way.
Do you assume GXChain is one other rip-off cryptocurrency undertaking working in China? Let us know within the feedback under.