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GXChain Offices Allegedly Shut Down by Chinese Police
Will Other ICOs from the 2017 Era Face A Similar Fate?
GXChain was one of 2017's most successful ICOs. They have managed to reach their hardcap within a matter of hours. A total of 24,510,000 GXC tokens were sold, which was the equivalent of $144,000,000 USD at the day after their ICO concluded.
They refer to themself as a 'blockchain for the global data economy'. It contains a decentralized data marketplace which serves hundreds of different businesses in China. Their coin, GXC is still #90 by marketcap on coinmarketcap.
Unlike many other ICOs of its day, GXChain was not an outright scam or con. They kept a dedicated team that kept working on the project years after the ICO concluded. Despite being one of the more legit ICOs of its era, it seems that GXChain have landed in hot water with the Chinese police.
GXChain Offices Closed by Police?
Mentioned earlier the GXChain team have seemingly encountered legal issues. Bitcoin influencer and prominent tweeter, Dovey Wan managed to break the story to western audiences.
video footage from onsite checking of GXchain's office, it's been emptied out and sealed up pic.twitter.com/FowDua9bS8â Dovey Wan ð ð¦ (@DoveyWan) September 11, 2019
So far it seems that the office's closure might be linked to their sales of personal data and not their ICO. The Chinese government have reportedly been clamping on companies and groups that sell processed personal data. Seeing that GXChain sometimes blurred the lines of privacy in a similar manner to Facebook, that could likely be the cause.
The price of GXC is falling sharply following the closure of their Chinese offices. It is likely to be booted out of the top 100 of coinmarketcap very shortly and probably won't recover.