I came across to an article that China has declared crypto airdrop illegal. I just wonder why is that crypto airdrop was declared as an illegal where in fact we know that crypto airdrop were just like a giveaways to the team who promote the ICO projects. This is one way to attract a private investors and will certain a way also to gain more possibilities of success in promoting the project. So, how could a crypto airdrop be banned? What could be the reason behind the banning of crypto airdrop?
So, i read further about the article and found out that China has repeatedly imposed strict sanctions against cryptocurrency. The main reason for it is stated in
https://cryptocurrencynews.com/china-bans-crypto-airdrops/ that
The People’s Bank of China, or PBoC, has classed token airdrops as “disguised” Initial Coin Offerings (ICOs). It detailed its new scrutiny in a financial stability report, published on Friday, November 2nd.
It just make sense how China reacted to crypto airdrops. The country doesn't have the likes on the ICO (Initial Coin Offerings) for some obvious reasons. And we know it already because there are plenty of ICO nowadays scamming investors or if not done scamming the project that will be implemented will not gone good and will just dump the project. Most of the project that was being brought up in the ICO were not really functioning and this will lead to undervalue the tokens/coins after the exchange listing of the tokens/coins. This is the problem with ICO's the team that manages the project will then just list their tokens and will not work on to improve more on the project. Though not all of the ICO were being dumped but basing on the number of ICO nowadays a huge percentage of it has come to the point that the tokens/coins were being undervalue and being dump. Project were dead.
Whom will going to blame for this after China declaring the crypto airdrop illegal?Is there actually anything china will not declare illegal? The only thing they have not been able to come out to declare illegal now is cryptocurrency as well as blockchain technology, but when it comes to everything related to ICOs, they are always in the news for finding a way to keep fighting it.
Nonetheless, it is understandable that the rate at which the ICO space is being abused calls for a lot of huge concern and trying to impose strict sanctions is something that would be expected by most developed countries in the long run anyway. The only set of people I blame are the gullible and dumb investors who just want to invest in everything without doing due diligence.