A company from China raised $ 18 million with the help of a “dubious” …

Chinese company raised $ 18 million with dubious token sale

Chinese medical firm raised 120 million yuan ($ 18 million) by issuing its own digital currency, contrary to the ban that China announced in 2017 year.

how reported on Monday by Investor China, Hangzhou-based Zhaoyun Group focuses on healthcare and research.

Though on official website company no information about ICO no, posts in social networks and on the forums indicate that it started selling my token on April 8.

According to these reports, Zhaoyun Group planned to issue 170 million tokens on the base blockchain Ethereum called Trillion Cloud Gold (TGCG). ten% of they were distributed through public sale.

A company from China raised $ 18 million with the help of a 'dubious' ...

According to Etherscan.io, everything tokens were created in mid-March 2018, but no transactions after of this was not done.

After talking with the promoters of the token sale in WeChat groups, the journalists found out that thanks to the public sales of the company It was attracted 18 million dollars. The sale was carried out using a multi-tiered distribution system, in which the participants returned their investments, attracting to the campaign of others investors.

The article calls the firm’s behavior “questionable”: firstly, it violates chinese ban on ICO, and secondly, her the business model is “very similar” to the one used in pyramid schemes.

It is noteworthy that this ICO was held at a time when the Chinese authorities again tightened measures to combat attraction funds with the help of cryptoassets, and in Tom including activities where investors’ money is collected through financial pyramids.