Initial coin offerings are nothing but Ponzi schemes in e-business garb

PEOPLE'S BANK OF CHINA, the country's central bank, along with banking and securities regulators and five other central government departments issued a joint statement on Monday banning individuals and organizations from raising funds through initial coin offerings (ICOs), or digital currency launches. Southern Metropolis Daily comments:

Individuals and organizations that have raised funds through ICOs are required to return them to the investors. The joint statement also says that since ICOs never obtained the authorities' approval, they are illegal.

The prices of bitcoin and ethereum, which comprise the bulk of the crypto-currencies in China, slumped immediately after the statement was posted on the central bank's website.