This is how Chinese Blockchain Projects Raise Funds even though the ICO Banned

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Create Project Closed Groups

Measurable Data Token(MDT), a decentralized data exchange ecosystem, which will be used to specify and reward users sharing their data to enterprises. The MDT team does not utilize any PR services to reach as many people as possible in the world. Instead, they simply create a Wechat group and send group members an email explaining investment details. To attract the investment, they promise 25% bonus for early investors and tokens purchased will be unlocked in 30 days when MDT is listed on the exchanges. Does it Sound Attractive?

One of the Investor said:

The project is really slow. They have been raising for over two months. Ever since exchanges were shut down, most investors just want to sell tokens they already have on hand. They don’t have much enthusiasm for new projects.

Initial Exchange Offerings

Mixin is an EOS-based real-time communication tool that can transfer coins by using the end-to-end encryption, its official website describes that the project has a 1,000,000 XIN token cap, where, 500,000 XIN will be reserved for the mixin team. 400,000 XIN will be listed as a XIN/EOS trading pair on BigONE without price limit from November 25 until December 25. The orders will be executed according to the price-time priority as received by the Bigone matching engine. The sale will end as soon as 8,000,000 EOS have been matched. Investors funnily call such type of crowdfunding as ‘Initial Exchange Offerings’ (IEOs) that synchronize token sales, token distribution, and tokens being listed at the exchanges.

The remaining 1,00,000 XIN will be sold to the whitelisted users after Dec 25 at the lowest Bigone price. How can we become the whitelisted users? First, we will have to register with our phone number and we will get an invitation code and a link.  We will be required to send the link to others and id anybody registers with our invitation code, we and the invitee will get a fixed share of the whitelist quota. even, invitees of the invitee will also credit some shares to the original inviter, up to the 7 levels.

This is why invitations with the links to register Mixin have been bunching all the WeChat groups from these past days. Group members complain that these kinds of marketing remind them scam ICOs, especially through considering the project which has not released any information about it or about the development team and roadmap or at least the white paper. It has not revealed about anything.

ICOs or IEOs, some projects rule out such efficient approaches to receive whopping financing. Nerthus is a Shenzhen-based blockchain startup, which uses the Directed Acyclic Graph technology (DAG) for creating a universal blockchain programming platform.

COO Nerthus, Erica Chen explained:

“These investors don’t know much about blockchain. We have to spend a lot of time explaining to them. And they keep asking when the project will be launched and want to monitor our project progress.”