China VC Try To Legalize ICO Through Private Funding
According to source close to the regulators, the authority is still paying close attention to the oversea trading platform. If risks and compliance issues rise again, regulatory measures may also be further escalated, including blocking website from domestic visitors.
On the other hand, some domestic equity investment institutions focusing on blockchain technology are also quietly exploring the possibility of legalizing ICO through private funding. However, some analysts pointed out that when the regulatory attitude remains unchanged. ICO through Private funding is still not viable at the moment.
What comes along with the ICO mania is the thriving of blockchain-related wemedia. According to a blockchain wemedia investor, due to the strong demand from trading platform and ICO projects, more wemedia players emerged in the market with soaring payment to contributors.
“We are hiring authors at a very competitive salary. If contents are good, the monthly salary can go to 30k-50k, the leader can get higher.”
the investor revealed:
“the main reason is that there are not many competitors in this field at present, but viewers and investment institutions are increasing every day.”
Reporter is informed that one of the business model of a leading blockchain wemedia is to release paid contents about blockchain exchanges or projects. At the end of 2017, the wemedia was asking for 0.1 bitcoin per message, which means 10 messages can be converted 10,000 US dollars at 10,000 USD per bitcoin.
“The thing is that such message is almost zero-cost for the wemedia and there are a lot of customers,” another blockchain media editor admits, “For example, a team want to promote a newly-issued tokens. They will find these wemedia to launch precise marketing campaign. “
“The overseas platform is obviously facing a higher risk for accepting domestic investors and is likely to be further rectified,” said the source “Rectification must also be done through the Internet, for example, its server or website could be blocked.”
There are signs already. Prior to the Spring Festival,Binance announced denial of service to visitors of Chinese IP, so did coinex.
On the eve of the Spring Festival, some VC discussed the possibility of legalization of “private ICO”. It’s learned that the discussion was also joined by representatives from some regulatory authorities.
“The ICO chaos is still difficult to manage. ICO should be included in regulation system to improve the transparency of the industry,”
said one private equity firm involved in the meeting.
“The venture capital organization does not want to miss out the blockchain opportunities, while the private funding has less exposure with controllable risk. So it’s suggested to promote ICO legalization through private funding as pilot program.”
The meeting didn’t produce any valuable conclusion. But insider believe that it is difficult for ICO to get legal position through private funding.
“Blockchain is a form of decentralized information storage, filing of which will definitely involve the construction of a new system. This is only a technical issue. The more crucial part is the legal structure. Upper-level law clearly defines the form of funds, trusts, and equities, etc and does not contain ‘token’ “
The above source said.
“Before the change of top-level legal system and the regulatory attitude, ICO is still facing many obstacles to get a legal standing.”
“There is also a potential contradiction between private funding and ICO,”
said a technical director of a medium-sized token platform in Beijing.
“Most of the ICO projects poise as a public chain and are not exclusive. If they raise funds through private investment, they must be limited to 200 individuals. Without liquidity and openness, the project itself will have problems. “