Ethereum Joins A Long List Of Dipping Cryptocurrency
Ethereum prices are tumbling with values trading down by almost twenty percent and under $300 per token. Chinese regulators were rumored to have begun taking steps to shut down bitcoin exchanges in China and maybe even stop trading of cryptocurrency all together.
BTC China, which is one of the largest bitcoin exchanges in China, said in a tweet on September 14th that it will be halting trading of bitcoin by the end of the month.
“After carefully considering the announcement published by Chinese regulators on Sept. 4, BTC China Exchange will stop all trading on Sept. 30.”
Earlier this month, Beijing made a few initial coin offerings illegal. This method of capital raising has been growing at a feverish pitch recently but now Beijing suggested it may also be banning cryptocurrency as well.
Typically when a company does an ICO, they issue new digital currency. This currency can be spent within a company’s business ecosystem (kind of like the way you spend tokens at an amusement park) or it can be used to drive the business directly. Some companies have been able to raise millions of dollars just within a few minutes or even seconds.
Ethereum is usually the cryptocurrency source of choice but has been falling since the Chinese ICO ban was announced. This was on top of an earlier issue with cryptocurrency in China when the country banned traders from withdrawing their bitcoin for a set amount of time.
Though the market is new, the recent surge has begun to raise real eyebrows. Though the future may seem unclear right now, this may be just a period of growing pains for digital currency.