Chinese police raided the offices and reportedly shut down the popular crypto company named GXChain which had a market cap of more than $600 million USD as we are finding out today in the latest cryptocurrency news.
The news of the crackdown led the price of the company to drop and once the news spreads to more crypto news outlets, the price is expected to plummet even lower and could ultimately face a liquidity crisis since the buyers are expected to disappear. GXChain is now trading 20 percent lower and has a current price of $0.624 which marks a huge retreat from its recent peak and high position of $1.50 which was set in the middle of August. The huge drop was further increased today when the news broke out that the Chinese police shut down the company by an order from the Chinese government which led the crypto to go down to zero as the liquidity dries up.
The founding partner of Primitive Crypto, Dovey Wan, explained the news about the company and stated that the crypto project was once the most popular ICO project in 2017:
“BREAKING: Another high profile 2017 ICO project GXChain $GXC just got clamped down by the Chinese police. GXChain was a very hot ICO back in the days with ATH market cap over $600M (even now still holds $48M) and considered to be among the very few legit ICOs.’’
It is not a secret that the Chinese authorities are not friends to cryptocurrency but the question remains why did the Chinese police decided to target the GXChain instead of other shady crypto projects that are located in the country. The company has still not released an official statement regarding the shutdown. Wan further explained that one of the most reasonable causes for this crackdown could be their business model which is based on selling processed personal credit data which is a very sensitive area in China currently. Wan noted for the altcoin news:
“Tbh I have no idea why the police took action against GXchain instead of 10000 other Chinese scams, as GXchain has a real business behind. The trigger might be their data business- they sell processed personal credit data, which is a highly sensitive area now in China.’’
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