China’s Central Television (CCTV), the highest level mouthpiece of the Chinese government, lashed out at domestic initial coin offerings, known as ICOs, saying that they are still ‘rampant’ despite the country’s 2017 ban.
The state media outlet stated that the ICO ban issued last September has not deterred local investors, and that instead a get-rich-quick mentality is driving the rush into the crypto space.
They went on to blast the emergence of what the chinese crypto community calls “air coins” which we may know as vaporware, which is a reference to projects that are not backed by an actual business or product.
Defiance of this ban is further proof of a shifting paradigm brought about by Bitcoin and other cryptocurrency, where individuals are taking their power back from the centralized powers.
However, not all is well in the Chinese ICO market. Li Xiaolai, an early investor in Bitcoin, has been listed as an advisor on many of these fraudulent projects, stating “99.99 percent of the time, I’m being [associated] with these projects without even knowing it. There’s always this fear of missing out (FOMO) among investors. And when [investors] can’t make judgments by themselves, they tend to refer to whoever influential is associated with the project,”.
This news comes amid a Chinese law enforcement crackdown on token sales, and is the latest effort by Chinese state news to educate the public on what it considers chaos in the cryptocurrency market.
This defiance of the government mandate is further proof that even in a country where the government’s power is absolute, Bitcoin and cryptocurrency in general is opening the door to more freedom than they could ever imagine.