China recently declared Initial Coin Offerings (ICO, a form of crowd-sourced fundraising that uses cryptocurrencies) illegal, and Bitcoin is tumbling as a result: the digital currency has now hit a low of close to $4,000, which is a significant drop from the coin’s $5,000 high over the weekend. China decided to ban ICOs after determining that 90% of those launched on the mainland were fraudulent.



Bitcoin fell by another $300 on Tuesday after the fallout of a Chinese ban on cryptocurrency crowdfunding methods saw the price of the digital coin slump earlier this week. The virtual currency fell from $4,584 to $4,350 on Monday following the announcement of a regulatory clampdown on initial coin offerings (ICOs). Many start-ups rely on ICOs as a means to raise funds by selling off new digital tokens to the market. Total ICO investments peaked above $1.2 billion this year.

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Source: [H]ardOCP – Bitcoin Dips after China’s Cryptocurrency Crackdown