Chinese company raised $ 18 million with its own cryptocurrency – although China has been banning ICO since 2017.
As reported by magazine Investor China, the company called “Zhayoun Group” is based in Hangzhou, and mainly engaged in health and research. After hints from social networks and forums, the Zhayoun Group is said to have started the sale on April 8th. In the process, 10% of the planned 170 million “Trillion Cloud Gold” (TGCG) tokens were publicly sold. The company itself is covered in this regard: On its website nothing is read by the ICO.
As shown on etherscan.io, all tokens were created in mid-March this year. However, no transactions were made with the ERC-20 based TGCG. The report also shows that $18 million was earned through a network marketing process: subscribers received a bonus on their investment when they recruited additional investors for the TGCG. It was true that the earlier a member has entered, the higher the bonus was. Conversely, latecomers had to recruit more and more members to get a significant bonus.
Investor China describes this practice as “questionable” because it strongly resembles snowball and ponzi systems. In addition to the ICO ban, so the dubious business practice should cause the company some problems.
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Categories: Crypto Currency