A Chinese healthcare firm has reportedly raised 120 million yuan ($18 million) by issuing a custom cryptocurrency, regardless of China’s 2017 ban on initial coin offerings (ICOs).
According to an Investor China report on Monday, the company involved &ndash named Zhaoyun Group and apparently primarily based in Hangzhou &ndash focuses on the healthcare and scientific analysis sector. Whilst the company’s official internet site does not contain any data about an ICO, posts on social networks and forums indicate that the firm launched a token sale on April eight.
According to the posts, Zhaoyun Group targeted the issuance of 170 million of its own ERC-20-primarily based (an ethereum standard) tokens, dubbed Trillion Cloud Gold (TGCG), ten % of which have been sold through a public offering.
Information from etherscan.io, the site that tracks transactions on the ethereum blockchain, shows that all the tokens were developed in mid-March 2018, but that no transactions were produced thereafter.
Via conversations with promotors in the token sale’s WeChat groups, the report indicated that the public offering raised the $18 million by means of a tiered distribution method wherein members acquire a return on their investment by attracting extra investors to obtain the token.
The report went on to get in touch with the firm’s conduct “questionable,” offered that it could have violated China’s notable ban on ICOs, even though the firm’s company model appears to “really related” these noticed in pyramid and Ponzi schemes.
The reported ICO comes at a time when Chinese authorities have stepped up its efforts in cracking down on crypto-connected fundraising activities, as properly as on these that use the concept to fleece investors by means of pyramid schemes, as previously reported by CoinDesk.
At press time, Zhaoyun Group had not responded to a CoinDesk request for comment.
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Published at Mon, 04 Jun 2018 11:00:49 +0000