China Central Television (CCTV), the official state TV channel in China, stated that Chinese-based ICOs are still being conducted, although the practice has been banned since 2017. The news was presented during “Financial News” on Monday night.
According to the presented story, the government prohibition failed to scare off local crypto-enthusiasts. Moreover, “get-rich-quick mentality” is quickly spreading and pushing people towards crypto. CCTV warned people of so-called “air coins” – token projects that are not legally registered. The number of such projects has increased by 30 times since the introduction of the ICO ban.
“While many business entities have moved their projects overseas following the ICO ban, a lot of these ‘air coins’ carried on fundraising in China without migration because they are loosely organized as a temporary team, not even a formal business entity,” stated the “Financial News”
To gain a bit of credibility, such projects try to associate themselves with prominent crypto investors, such as Li Xiaolai. The crypto evangelist himself commented on the matter:
“99.99 percent of the time, I’m being associated with these projects without even knowing it.“