Apparently, neither bans nor harsh restrictions can stay Asian investors from ICOs.
…the halt on ICOs has not stopped investors from buying into the deals. In China, over-the-counter bitcoin sales rose from 5 per cent before the ban to more than 20 per cent in November.
Back in September, the Chinese government banned token sales alleging, among other things, that it disrupts social order. South Korea also implemented a similar ban, while other Asian countries warned that offerings may have great risks attached to them.
Despite the cold treatment, data from ICO researcher KYC-Chain show that demand predominantly comes from Asia. How? Rather than have their governments cramp their style, ICO investors have apparently either moved offshore or, in the case of some Chinese investors, moved on to the OTC markets.
Case in point is the recent ICO launch of GATCOIN. The start-up, whose killer shopping app aims to bring cryptocurrencies into the mainstream, aims to raise $35 million and has attracted more than a few investors from Korea.
Despite current regulations, Korea is the second-largest source of investment for GATCOIN, making up 14.28% of its investor base versus the United States’ 14.33%. Asia in fact is the source of over 50% of GATCOIN’s investors, with India the third largest and Hong Kong and Vietnam appearing in the top ten.
“This is the trend that we are seeing with all the token sales using our technology right now,” said Edmund Lowell, KYC-Chain’s founder and chief executive, who said that a token sale for his company SelfKey, a separate entity, had experienced the strongest demand from the region. “Asia is where the demand is highest.”