On September 4, 2017 (July 14, 2017 in the lunar calendar), the ICO stopped Bitcoin's collapse. With the characterization of ICO financing, a storm swept the digital currency market. ICOs stop Bitcoin's collapse. There is a saying that initial coin offerings (ICOs) create not wealth, but amazing bubbles. So ICOs said, if you don't drink bubbles, you can't drink beer at all. Everything has changed today. The ICO, which once created the myth of getting rich overnight, was officially classified as "illegal fund-raising" by the official today! At 3 pm on September 4, 2017, the Central Bank, the Central Cyberspace Administration, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission issued the "Announcement on Preventing Financing Risks of Coin Issuance", which gave ICO a qualitative determination and announced the decision to ban it. The announcement clearly pointed out that token issuance financing is essentially an illegal public financing act without approval, and is suspected of illegal and criminal activities such as illegal sales of tokens and coupons, illegal issuance of securities, and illegal fund-raising, financial fraud, and pyramid schemes. It also requires that from the date of issuance of this announcement, all types of token issuance financing activities should be stopped immediately, and organizations and individuals that have completed token issuance financing should make arrangements such as liquidation. According to data from the global virtual currency statistics website Coinmarketcap, as of 20:30 Beijing time on September 4, the current total market value of the 1101 virtual currencies counted by the website is US$146.26 billion, and the market value is US$162.27 billion at around 2 a.m. Beijing time on September 4. In other words, in the past 18 hours, the total market value of global virtual currencies has evaporated by US$16 billion (equivalent to RMB 104.5 billion), a drop of as much as 10%. After the central bank's announcement, major tokens fell sharply across the board. Although virtual currencies supported by blockchain technology have emerged abroad, their rapid rise on a global scale is inseparable from active transactions in the China market. Therefore, in terms of virtual currency market, the world looks at China, and China looks at supervision. Over the past week, with the recent comprehensive investigation of ICOs by China's regulatory authorities, the entire virtual currency market has been cloudy. Coinmarketcap data shows that among the top 20 virtual currencies currently in market capitalisation, most of them have fallen between 1% and 20% in the past seven days, with the highest decline being Hshare, reaching 66.59%. After the central bank document was issued at 3 pm on September 4, all virtual currencies plunged across the board. Not only have ICO currency prices fallen like a waterfall, but the prices of several major virtual currencies have also been greatly affected. Jubiin.com data shows that as of 18:30 pm on September 4, the currency in the main trading area of the website fell by 4. About 0%, the innovation pilot zone dropped by 15? About 0%, most of the blockchain assets traded in the innovation experimental zone are projects with short creation times, large price fluctuations, or high risks. (Photo source: Jubi.com) In this regard, OKCoin analysts said that the regulatory measures are aimed at the ICO token market. Many project token prices without substantial products may fall sharply, but the direct impact on Bitcoin, Litecoin, Ethereum and other digital encryption token markets is not significant, and even if there is, it will be a short-term impact. In the long run, Bitcoin's price is influenced by consensus value. In addition, the central bank issued a document today requiring strengthening the management of token financing and trading platforms and prohibiting platforms from providing the replenishment and withdrawal of tokens and RMB, as well as currency transactions. As of today, the top three domestic platforms have suspended ICO business. Among them, on August 30, ICO platform ICOINFO suspended ICO business. On September 2, Bitcoin China suspended ICOCOIN's recharge and transaction services, and suspended the project's withdrawal business on September 3. On September 4, ICO365, the ICO platform ranked third in domestic financing amount, issued an announcement stating that it would suspend ICO business and wait for the issuance of regulatory policies before proceeding in accordance with policy specifications. The platform's financing amount in the first half of the year accounted for approximately 10.6% of the entire market size. In addition, another well-known ICO platform, ICOAGE, has also suspended ICO services. The platform was launched in March 2017, with a financing amount of more than US$170 million, more than 30 projects launched, more than 60,000 participants, and an increase in the market value of assets by 678%. Taking advantage of the virtual currency and blockchain craze, ICOs have emerged and become extremely popular. According to the "Domestic ICO Development Report for the First Half of 2017" released by the National Internet Financial Security Technical Expert Committee, a total of 65 ICO projects were completed in China in the first half of this year, with a cumulative financing scale of 2.616 billion yuan and a cumulative number of participants reaching 105,000. However, a regulatory ban punctured the growing bubble of ICOs and made this capital carnival disillusionment. This financial monster that has grown rapidly in just two or three years has finally returned to dust and soil. The five key points of the announcement scan ICO is similar to IPO(initial public offering) in the digital currency community. It refers to financing entities raising so-called "virtual currencies" such as Bitcoin and Ethereum from investors through the illegal sale and circulation of tokens. The "Announcement" characterizes virtual currency and ICOs, and clearly stipulates the entities engaged in ICOs. The following are the core points of the "Announcement": 1. Characterization of ICOs: Illegal financing behavior The "Announcement" states that ICOs are essentially An illegal public financing act without approval, and is suspected of illegal and criminal activities such as illegal sales of tokens and coupons, illegal issuance of securities, and illegal fund-raising, financial fraud, and pyramid schemes. Relevant departments will strictly enforce the law and resolutely control market chaos. Suspected crimes are discovered and will be transferred to judicial authorities. 2. Characterization of virtual currency: It does not have the same legal status as currency. The Announcement states that the tokens or "virtual currency" used in token issuance and financing are not issued by the monetary authority, do not have monetary attributes such as legal compensation and mandatory, and do not have the same legal status as currency and cannot and should not be circulated as currency in the market. 3. The comprehensive suspension of ICO activities stated that from the date of this announcement, various token issuance and financing activities should be stopped immediately. Organizations and individuals that have completed token issuance financing should make arrangements such as liquidation. Relevant departments will seriously investigate and punish illegal activities in token issuance and financing activities that refuse to stop and completed token issuance and financing projects in accordance with the law. Before the release of the "Announcement", ICO projects had refunded funds to investors. Broker China reporters learned that some ICO projects have issued announcements stating that after communication with the platform, each user's assets will be returned the same way. The specific refund time and process need to pay attention to the announcements of each platform. 4. Clarify the requirements of the regulatory authorities that the two types of institutions are prohibited from doing business. Starting from the date of issuance of the announcement, any so-called token financing and trading platform must have three "no": it must not engage in exchanges between legal currency and tokens, and "virtual currency". Exchange business, it is not allowed to buy, sell or act as a central counterparty to buy and sell tokens or "virtual currency", and it is not allowed to provide pricing, information intermediary and other services for tokens or "virtual currency". For token financing trading platforms with violations of laws and regulations, the financial management department will request the telecommunications authorities to close their website platforms and mobile apps in accordance with the law, request the network information department to remove mobile apps from application stores, and request the industrial and commercial administration department to revoke their business license in accordance with the law. Financial institutions and non-bank payment institutions have two "prohibitions": they are not allowed to directly or indirectly provide account opening, registration, trading, clearing, settlement and other products or services for token issuance financing and "virtual currency", and are not allowed to underwrite tokens and "virtual currency" related insurance business or include tokens and "virtual currency" in the scope of insurance liability. 5. Remind the public to beware of being deceived. The "Announcement" states that there are multiple risks in token issuance, financing and trading, including false asset risks, business failure risks, investment speculation risks, etc. Investors must bear the investment risks themselves, and we hope that investors will beware of being deceived. For all types of illegal financial activities carried out under the name of "currency", the public should strengthen their awareness of risk prevention and identification capabilities, and promptly report relevant clues of violations of laws and regulations. It is worth noting that since ICO is characterized as illegal fund-raising, according to the "Regulations on the Disposal of Illegal Fund-raising (Draft for Comments)" promulgated by the CBRC, illegal fund-raising participants should bear the losses suffered by participating in illegal fund-raising. The release of the "Announcement" on the comprehensive investigation of the ICO platform is regarded as the "ultimate move" of the official, but in fact, long before this, the regulatory authorities had conducted comprehensive research and investigation of ICO. According to Caixin, relevant people from the central bank studied a large number of ICO white papers and came to the conclusion: "90% of ICO projects are suspected of illegal fund-raising and subjective intentional fraud. In fact, even 1% of ICO projects that actually raise funds for project investment are not enough." On August 30, the Internet Finance Association of China issued a warning stating that some domestic and foreign institutions used various misleading publicity methods to engage in financing activities in the name of ICO. Relevant financial activities did not obtain any permission, including suspected fraud, illegal securities, illegal fund-raising, etc. On September 2, the Office of the National Leading Group for the Special Rectification of Internet Financial Risks issued the "Notice on Carrying out Cleanup and Rectification of Token Issuance Financing"(Regulation Office Letter [2017] No. 99), requiring a comprehensive investigation of ICO projects. The special Internet financial risk rectification offices of various provinces immediately carried out the investigation of ICO within their jurisdiction, requiring the token issuance financing and trading platforms within their jurisdiction to report the situation including financing entities, senior executives, financing amount, financing time, etc. before the end of work on September 4; It also requires active and steady efforts to clean up and rectify token issuance platforms within its jurisdiction, implement measures such as interviews with senior executives of token issuance platforms and monitoring their accounts, protect the interests of investors, prevent mass incidents, and effectively prevent and resolve financial risks. At the same time, the National Rectification Office provided a list of ICO platforms for reference by various localities, requiring local Rectification Offices to conduct further detailed investigations on this basis to ensure that no omissions and "zero reporting" is required where no token issuance platforms are found. It can be seen that as an important link in the ICO interest chain, trading platforms are a major focus of supervision. According to industry insiders, many trading platforms are currently very irregular in all aspects. Some platforms even have servers abroad, which risks running away with money. On the one hand, you can earn the "admission fee" for project control, and even, you can jointly manipulate the price with the dealer to "cut leeks". ICOs are chaos in the four major industries. In the early days, ICOs were just a financing method in the blockchain technology circle. Since 2017, with the surge in revenue from several projects, ICOs have begun to enter the public's attention. As ICOs continue to heat up, investors with weak risk identification and tolerance such as "Aunt" have also entered the market recently, accumulating more risks for this barbaric market. According to Zhu Jiawei, COO of Huobi. com, there are roughly three types of projects in the current ICO market: the first type is pure fraud, which is to continuously ask the latter to put money into it through pyramid schemes to defraud money. The second category is someone who wants to make money. When they see the hot market and venture capital money, they have a project background, but the project itself is not that valuable. The third type of projects is those that really want to do something, and only these few people who really work hard will survive in the end. After learning from various sources, securities trader China reporters summarized the main chaos existing in the current ICO market. First, the degree of standardization is poor and core technologies are in doubt. At present, many projects are not innovative at all, and they are shouting cliché slogans such as "decentralization". Most of the new chains released are simple modifications based on the open source Bitcoin and Ethereum source code, and the application prospects are also on paper. Second, the trust is worrying and the whereabouts of the funds are doubtful. Compared with IPOs, which often cost hundreds of pages, most ICO projects only have a simple official website and white paper (usually a simple PDF document) when they are launched, and the actual content such as the use of funds and review mechanisms is vague or even lacking. These ICO projects often raise tens of millions or even hundreds of millions of yuan (calculated in RMB equivalent to Bitcoin or Ethereum), but from industry estimates, what the white paper claims to do does does not require funds of this magnitude. Because the project lacks effective review and has extremely low transparency, it is highly suspected that the funds raised have gone into private pockets. Third, previous ICOs had low transparency due to lack of supervision. Some industry leaders have given project platforms everywhere and even supported each other for cooperation without carefully analyzing the project prospects. Some trading platforms promote online trading of tokens for ICO projects, but the platform parties and these ICO project parties are closely related, and even have overlapping investment teams, which is suspected to be involved in the transaction. Fourth, from the perspective of investors, blind investment is generally common. On the one hand, investors believe in the "myth of sudden wealth" and rush into the market without understanding the project. The CTO of a well-known domestic digital currency trading platform told brokerage China reporters that the current white papers are all "three noes" without data, quotes, and models. The code, thesis, and presentation are not important, and users do not read it. It is easy for the project party to swindle money. On the other hand, most newly admitted investors have weak risk recognition and tolerance and are too sensitive to prices, exacerbating the volatility of the market. Foreign regulatory authorities are also taking action. From an international perspective, countries have also begun to pay attention to this new financing method. The US Securities and Exchange Commission issued a risk warning on ICO and identified the "TheDAO" project as a securities issuance. The Monetary Authority of Singapore also stated that the provision and issuance of digital tokens in the country may be supervised by it, while the United Kingdom has launched a regulatory sandbox to provide fault tolerance for various innovations. Recently, the U.S. Financial Commission has established a group of financial technology experts to issue certificates for ICOs and evaluate the advantages of future ICOs. This independent department has been appointed as the ICO Certification Committee (ICC) and will evaluate ICOs based on a series of undisclosed conditions. In addition, it is worth noting that ICO is not the same concept as Bitcoin and blockchain. Okcoin Bank analysts said that the current unhealthy development and serious bubble phenomenon of ICO have confused investors who do not understand the industry between blockchain technology, encrypted digital tokens, and ICO tokens, and have also brought to investors Awareness and investment misunderstandings. Regulators 'supervision of ICOs and guiding their healthy and orderly development are conducive to the better development of the blockchain industry and virtual currency industry. ICO issuance is essentially different from Bitcoin issuance. ICO issuance has strong centralized attributes, and the fundraising scale depends entirely on the launching platform, while the important attribute of Bitcoin issuance is decentralization. Just because 90% of ICO projects are unreliable, we cannot conclude that Bitcoin and blockchain technology are unreliable. In fact, both crypto tokens and the technology itself are neutral.On September 4, 2017 (July 14, 2017 in the lunar calendar), the ICO stopped Bitcoin's collapse. With the characterization of ICO financing, a storm swept the digital currency market. ICOs stop Bitcoin's collapse. There is a saying that initial coin offerings (ICOs) create not wealth, but amazing bubbles. So ICOs said, if you don't drink bubbles, you can't drink beer at all. Everything has changed today. The ICO, which once created the myth of getting rich overnight, was officially classified as "illegal fund-raising" by the official today! At 3 pm on September 4, 2017, the Central Bank, the Central Cyberspace Administration, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission issued the "Announcement on Preventing Financing Risks of Coin Issuance", which gave ICO a qualitative determination and announced the decision to ban it. The announcement clearly pointed out that token issuance financing is essentially an illegal public financing act without approval, and is suspected of illegal and criminal activities such as illegal sales of tokens and coupons, illegal issuance of securities, and illegal fund-raising, financial fraud, and pyramid schemes. It also requires that from the date of issuance of this announcement, all types of token issuance financing activities should be stopped immediately, and organizations and individuals that have completed token issuance financing should make arrangements such as liquidation. According to data from the global virtual currency statistics website Coinmarketcap, as of 20:30 Beijing time on September 4, the current total market value of the 1101 virtual currencies counted by the website is US$146.26 billion, and the market value is US$162.27 billion at around 2 a.m. Beijing time on September 4. In other words, in the past 18 hours, the total market value of global virtual currencies has evaporated by US$16 billion (equivalent to RMB 104.5 billion), a drop of as much as 10%. After the central bank's announcement, major tokens fell sharply across the board. Although virtual currencies supported by blockchain technology have emerged abroad, their rapid rise on a global scale is inseparable from active transactions in the China market. Therefore, in terms of virtual currency market, the world looks at China, and China looks at supervision. Over the past week, with the recent comprehensive investigation of ICOs by China's regulatory authorities, the entire virtual currency market has been cloudy. Coinmarketcap data shows that among the top 20 virtual currencies currently in market capitalisation, most of them have fallen between 1% and 20% in the past seven days, with the highest decline being Hshare, reaching 66.59%. After the central bank document was issued at 3 pm on September 4, all virtual currencies plunged across the board. Not only have ICO currency prices fallen like a waterfall, but the prices of several major virtual currencies have also been greatly affected. Jubiin.com data shows that as of 18:30 pm on September 4, the currency in the main trading area of the website fell by 4. About 0%, the innovation pilot zone dropped by 15? About 0%, most of the blockchain assets traded in the innovation experimental zone are projects with short creation times, large price fluctuations, or high risks. (Photo source: Jubi.com) In this regard, OKCoin analysts said that the regulatory measures are aimed at the ICO token market. Many project token prices without substantial products may fall sharply, but the direct impact on Bitcoin, Litecoin, Ethereum and other digital encryption token markets is not significant, and even if there is, it will be a short-term impact. In the long run, Bitcoin's price is influenced by consensus value. In addition, the central bank issued a document today requiring strengthening the management of token financing and trading platforms and prohibiting platforms from providing the replenishment and withdrawal of tokens and RMB, as well as currency transactions. As of today, the top three domestic platforms have suspended ICO business. Among them, on August 30, ICO platform ICOINFO suspended ICO business. On September 2, Bitcoin China suspended ICOCOIN's recharge and transaction services, and suspended the project's withdrawal business on September 3. On September 4, ICO365, the ICO platform ranked third in domestic financing amount, issued an announcement stating that it would suspend ICO business and wait for the issuance of regulatory policies before proceeding in accordance with policy specifications. The platform's financing amount in the first half of the year accounted for approximately 10.6% of the entire market size. In addition, another well-known ICO platform, ICOAGE, has also suspended ICO services. The platform was launched in March 2017, with a financing amount of more than US$170 million, more than 30 projects launched, more than 60,000 participants, and an increase in the market value of assets by 678%. Taking advantage of the virtual currency and blockchain craze, ICOs have emerged and become extremely popular. According to the "Domestic ICO Development Report for the First Half of 2017" released by the National Internet Financial Security Technical Expert Committee, a total of 65 ICO projects were completed in China in the first half of this year, with a cumulative financing scale of 2.616 billion yuan and a cumulative number of participants reaching 105,000. However, a regulatory ban punctured the growing bubble of ICOs and made this capital carnival disillusionment. This financial monster that has grown rapidly in just two or three years has finally returned to dust and soil. The five key points of the announcement scan ICO is similar to IPO(initial public offering) in the digital currency community. It refers to financing entities raising so-called "virtual currencies" such as Bitcoin and Ethereum from investors through the illegal sale and circulation of tokens. The "Announcement" characterizes virtual currency and ICOs, and clearly stipulates the entities engaged in ICOs. The following are the core points of the "Announcement": 1. Characterization of ICOs: Illegal financing behavior The "Announcement" states that ICOs are essentially An illegal public financing act without approval, and is suspected of illegal and criminal activities such as illegal sales of tokens and coupons, illegal issuance of securities, and illegal fund-raising, financial fraud, and pyramid schemes. Relevant departments will strictly enforce the law and resolutely control market chaos. Suspected crimes are discovered and will be transferred to judicial authorities. 2. Characterization of virtual currency: It does not have the same legal status as currency. The Announcement states that the tokens or "virtual currency" used in token issuance and financing are not issued by the monetary authority, do not have monetary attributes such as legal compensation and mandatory, and do not have the same legal status as currency and cannot and should not be circulated as currency in the market. 3. The comprehensive suspension of ICO activities stated that from the date of this announcement, various token issuance and financing activities should be stopped immediately. Organizations and individuals that have completed token issuance financing should make arrangements such as liquidation. Relevant departments will seriously investigate and punish illegal activities in token issuance and financing activities that refuse to stop and completed token issuance and financing projects in accordance with the law. Before the release of the "Announcement", ICO projects had refunded funds to investors. Broker China reporters learned that some ICO projects have issued announcements stating that after communication with the platform, each user's assets will be returned the same way. The specific refund time and process need to pay attention to the announcements of each platform. 4. Clarify the requirements of the regulatory authorities that the two types of institutions are prohibited from doing business. Starting from the date of issuance of the announcement, any so-called token financing and trading platform must have three "no": it must not engage in exchanges between legal currency and tokens, and "virtual currency". Exchange business, it is not allowed to buy, sell or act as a central counterparty to buy and sell tokens or "virtual currency", and it is not allowed to provide pricing, information intermediary and other services for tokens or "virtual currency". For token financing trading platforms with violations of laws and regulations, the financial management department will request the telecommunications authorities to close their website platforms and mobile apps in accordance with the law, request the network information department to remove mobile apps from application stores, and request the industrial and commercial administration department to revoke their business license in accordance with the law. Financial institutions and non-bank payment institutions have two "prohibitions": they are not allowed to directly or indirectly provide account opening, registration, trading, clearing, settlement and other products or services for token issuance financing and "virtual currency", and are not allowed to underwrite tokens and "virtual currency" related insurance business or include tokens and "virtual currency" in the scope of insurance liability. 5. Remind the public to beware of being deceived. The "Announcement" states that there are multiple risks in token issuance, financing and trading, including false asset risks, business failure risks, investment speculation risks, etc. Investors must bear the investment risks themselves, and we hope that investors will beware of being deceived. For all types of illegal financial activities carried out under the name of "currency", the public should strengthen their awareness of risk prevention and identification capabilities, and promptly report relevant clues of violations of laws and regulations. It is worth noting that since ICO is characterized as illegal fund-raising, according to the "Regulations on the Disposal of Illegal Fund-raising (Draft for Comments)" promulgated by the CBRC, illegal fund-raising participants should bear the losses suffered by participating in illegal fund-raising. The release of the "Announcement" on the comprehensive investigation of the ICO platform is regarded as the "ultimate move" of the official, but in fact, long before this, the regulatory authorities had conducted comprehensive research and investigation of ICO. According to Caixin, relevant people from the central bank studied a large number of ICO white papers and came to the conclusion: "90% of ICO projects are suspected of illegal fund-raising and subjective intentional fraud. In fact, even 1% of ICO projects that actually raise funds for project investment are not enough." On August 30, the Internet Finance Association of China issued a warning stating that some domestic and foreign institutions used various misleading publicity methods to engage in financing activities in the name of ICO. Relevant financial activities did not obtain any permission, including suspected fraud, illegal securities, illegal fund-raising, etc. On September 2, the Office of the National Leading Group for the Special Rectification of Internet Financial Risks issued the "Notice on Carrying out Cleanup and Rectification of Token Issuance Financing"(Regulation Office Letter [2017] No. 99), requiring a comprehensive investigation of ICO projects. The special Internet financial risk rectification offices of various provinces immediately carried out the investigation of ICO within their jurisdiction, requiring the token issuance financing and trading platforms within their jurisdiction to report the situation including financing entities, senior executives, financing amount, financing time, etc. before the end of work on September 4; It also requires active and steady efforts to clean up and rectify token issuance platforms within its jurisdiction, implement measures such as interviews with senior executives of token issuance platforms and monitoring their accounts, protect the interests of investors, prevent mass incidents, and effectively prevent and resolve financial risks. At the same time, the National Rectification Office provided a list of ICO platforms for reference by various localities, requiring local Rectification Offices to conduct further detailed investigations on this basis to ensure that no omissions and "zero reporting" is required where no token issuance platforms are found. It can be seen that as an important link in the ICO interest chain, trading platforms are a major focus of supervision. According to industry insiders, many trading platforms are currently very irregular in all aspects. Some platforms even have servers abroad, which risks running away with money. On the one hand, you can earn the "admission fee" for project control, and even, you can jointly manipulate the price with the dealer to "cut leeks". ICOs are chaos in the four major industries. In the early days, ICOs were just a financing method in the blockchain technology circle. Since 2017, with the surge in revenue from several projects, ICOs have begun to enter the public's attention. As ICOs continue to heat up, investors with weak risk identification and tolerance such as "Aunt" have also entered the market recently, accumulating more risks for this barbaric market. According to Zhu Jiawei, COO of Huobi. com, there are roughly three types of projects in the current ICO market: the first type is pure fraud, which is to continuously ask the latter to put money into it through pyramid schemes to defraud money. The second category is someone who wants to make money. When they see the hot market and venture capital money, they have a project background, but the project itself is not that valuable. The third type of projects is those that really want to do something, and only these few people who really work hard will survive in the end. After learning from various sources, securities trader China reporters summarized the main chaos existing in the current ICO market. First, the degree of standardization is poor and core technologies are in doubt. At present, many projects are not innovative at all, and they are shouting cliché slogans such as "decentralization". Most of the new chains released are simple modifications based on the open source Bitcoin and Ethereum source code, and the application prospects are also on paper. Second, the trust is worrying and the whereabouts of the funds are doubtful. Compared with IPOs, which often cost hundreds of pages, most ICO projects only have a simple official website and white paper (usually a simple PDF document) when they are launched, and the actual content such as the use of funds and review mechanisms is vague or even lacking. These ICO projects often raise tens of millions or even hundreds of millions of yuan (calculated in RMB equivalent to Bitcoin or Ethereum), but from industry estimates, what the white paper claims to do does does not require funds of this magnitude. Because the project lacks effective review and has extremely low transparency, it is highly suspected that the funds raised have gone into private pockets. Third, previous ICOs had low transparency due to lack of supervision. Some industry leaders have given project platforms everywhere and even supported each other for cooperation without carefully analyzing the project prospects. Some trading platforms promote online trading of tokens for ICO projects, but the platform parties and these ICO project parties are closely related, and even have overlapping investment teams, which is suspected to be involved in the transaction. Fourth, from the perspective of investors, blind investment is generally common. On the one hand, investors believe in the "myth of sudden wealth" and rush into the market without understanding the project. The CTO of a well-known domestic digital currency trading platform told brokerage China reporters that the current white papers are all "three noes" without data, quotes, and models. The code, thesis, and presentation are not important, and users do not read it. It is easy for the project party to swindle money. On the other hand, most newly admitted investors have weak risk recognition and tolerance and are too sensitive to prices, exacerbating the volatility of the market. Foreign regulatory authorities are also taking action. From an international perspective, countries have also begun to pay attention to this new financing method. The US Securities and Exchange Commission issued a risk warning on ICO and identified the "TheDAO" project as a securities issuance. The Monetary Authority of Singapore also stated that the provision and issuance of digital tokens in the country may be supervised by it, while the United Kingdom has launched a regulatory sandbox to provide fault tolerance for various innovations. Recently, the U.S. Financial Commission has established a group of financial technology experts to issue certificates for ICOs and evaluate the advantages of future ICOs. This independent department has been appointed as the ICO Certification Committee (ICC) and will evaluate ICOs based on a series of undisclosed conditions. In addition, it is worth noting that ICO is not the same concept as Bitcoin and blockchain. Okcoin Bank analysts said that the current unhealthy development and serious bubble phenomenon of ICO have confused investors who do not understand the industry between blockchain technology, encrypted digital tokens, and ICO tokens, and have also brought to investors Awareness and investment misunderstandings. Regulators 'supervision of ICOs and guiding their healthy and orderly development are conducive to the better development of the blockchain industry and virtual currency industry. ICO issuance is essentially different from Bitcoin issuance. ICO issuance has strong centralized attributes, and the fundraising scale depends entirely on the launching platform, while the important attribute of Bitcoin issuance is decentralization. Just because 90% of ICO projects are unreliable, we cannot conclude that Bitcoin and blockchain technology are unreliable. In fact, both crypto tokens and the technology itself are neutral.