Popular ICO GXChain Faces Apparent Chinese Police Crackdown

The Chinese government has reportedly shut down a popular and well-funded crypto company called GXChain, which at its peak had a market cap of over $600 million USD.

News of this crackdown swiftly led GXChains price to plummet, and once more official news surrounding this crackdown is released it is highly probable that the cryptos price will continue dropping lower and could ultimately face a liquidity crisis as buyers disappear.

GXChain Plummets Amidst Chinese Police Crackdown

At the time of writing, GXChain (GXC) is trading down nearly 20% at its current price of $0.624, which marks a steep retreat from its recent highs of nearly $1.50 that were set in early-August.

This massive drop was further perpetuated today when news broke today regarding the companys offices being shut down by the Chinese government, which may ultimately lead the crypto to plummet towards zero as its liquidity dries up.

Dovey Wan, founding partner of Primitive Crypto, broke the news about the company being shut down, explaining that it was once of the most popular ICO projects in 2017.

BREAKING: Another high profile 2017 ICO project GXChain $GXC just got clamped down by the Chinese police. GXChain was a very hot ICO back in the days with ATH market cap over $600M (even now still holds $48M) and considered to be among the very few legit ICOs, he explained.

GXCs Business Model May Have Sparked Police Crackdown

Its no secret that Chinese authorities are no friends of cryptocurrency, but why they chose to target GXChain instead of other far shadier crypto projects that are located in China still remains mysterious, and the company has not yet released an official statement regarding the imbroglio.

Wan further added that one possible cause behind this crackdown could be their business model which entails selling processed personal credit data which is a highly sensitive area in China presently.

Tbh I have no idea why the police took action against GXchain instead of 10000 other Chinese scams, as GXchain has a real business behind. The trigger might be their data business- they sell processed personal credit data, which is a highly sensitive area now in China, Wan noted.

As more official news surrounding this situation is released, it is highly likely that it will grow increasingly clear as to just how big of a long-term impact this will have on GXCs short and long-term price action.

Featured image from Shutterstock.

The post Popular ICO GXChain Faces Apparent Chinese Police Crackdown appeared first on NewsBTC.

11.09.2019 / 14:20 53
Chinese Police Raid Offices of ‘Well Known Crypto Project’ Chinese Police Raid Offices of ‘Well
The police in China have carried out another raid on a cryptocurrency project, sealing up offices belonging to the GXChain (GXC) project. Well-Known
Ethereum Plummets 10% Overnight: Possible Causes Behind the Dump Ethereum Plummets 10% Overnight:
Ethereum (ETH) has been one of the many victims of the recent widespread sell-off in the crypto markets, which was sparked when Bitcoin faced a sharp
The Daily: Chinese Crackdown Continues, ICO Head Faces 15 Years in Prison The Daily: Chinese Crackdown Continues,
In today’s edition of Bitcoin in Brief we cover stories about the latest development in the ongoing Chinese government crackdown on online crypto
China Continues Crackdown: No Hotels, Malls, Offices Used as Crypto Venues China Continues Crackdown: No Hotels,
Zheping Huang, reporter for South China Morning Post , claims to have verified authenticity of online documents urging further crackdowns by the
Shot Taiwanese Bitcoin Miner Blames Trading Crackdown in China Shot Taiwanese Bitcoin Miner Blames
The regulatory crackdown on bitcoin trading in mainland China has reportedly led to a bitcoin miner in Taiwan being shot by local gangsters.
Comments (0)
Add a comment
Comment on