According to the Chinese regulator, after the ICO ban last year, new proposals began to appear on the market. A new type of investment attraction was detected by the National Internet Finance Association of China. Instead of the ICO, companies began to conduct initial miners’ offers, or IMO.
This offer provides that investors invest not in the cryptocurrency, but in the purchase of mining equipment by the company. When carrying out IMO, the mining conditions are agreed in advance, including the types of cryptocurrencies, for the mining of which the company’s capacities are used.
The Chinese regulator has quickly grasped this scheme and the fundraising was stopped. According to the representation of the NIFA, IMO was presented to investors as an opportunity to bypass the ban on ICO, but in essence it was the same. After the decision was made to terminate such activities, the Association began to stop distributing promotional materials and promoting the IMO.
The regulator urged investors to recognize that the IMO proposal is the same as the ICO. As previously stated by representatives of the NIFA, ICO can be held by companies that provide false information and are scammers.