China Central TV has run a news story warning the Chinese public and investors about the related pitfalls of cryptocurrency, China Banking News reports.
The report, entitled ‘Blockchain Cryptocurrency Bubble Accumulates’ (区块链”代币泡沫堆积), is one of many following last years ban in China on ICOs. This report cites an investor named Yang Chao as an example of the misfortunes of crypto investing, reportedly losing tens of millions of Chinese yuan (CNY) this year on his Bitcoin investments, claiming:
“In actuality, this isn’t the first time that Yang Chao has speculated on coins… Prior to the banning of ICOs and cryptocurrency trading platforms, his losses already exceeded 2 million yuan.”
Yang Chao is reported to have suggested that the recent ICO ban has done nothing to dampen the enthusiasm of Chinese investors, and his personal reasons for continuing to invest is a result of cryptocurrencies large fluctuations, adding that investors like himself a relatively few in number.
Although Yang Chao’s continued diligence may be unusual in light of Bitcoin’s fluctuating price range this year, the report goes on to say that due to the “mad increase” in the price of Bitcoin, exceeding CNY 120,000 since its creation, “the allure of becoming rich overnight has attracted a large volume of investors”.
China banned both ICOs and cryptocurrency exchanges in September 2017, but trading by individuals has remained a murky area with many businessmen relocating to Hong Kong or Japan while still raising funds from mainland investors.
China Central TV ended its news feature with a final warning to would be investors, commenting: “The lack of openness, the lack of transparency, the instability of prices, as well as the expectation amongst investors that they will become rich overnight, has magnified risk on the virtual currency market.”
Cryptocurrencies have battled to find a place within China’s massive financial structure due to persistent government and state media pressure, but the same can’t be said for blockchain. Numerous projects are underway such as Shenzhen City government’s latest project investing CNY 500 million (USD 80 million) in blockchain startups.
Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom
Telegram Alerts from BitcoinNews.com at https://t.me/bconews