Warning about risks from IMOs

Source: Xinhua | 2018-01-15

A Chinese industry association has cautioned against risks from the so-called “initial miner offerings,” saying they are disguised digital coin fundraising that has been completely halted in the country.

Investors should be alert to hidden risks of the IMOs, the National Internet Finance Association of China said in a statement on Friday.

Originating in China, the IMOs allow companies to sell mining hardware to generate a particular cryptocurrency or token that can be rewarded to contributors. The model became popular after financial regulators, including the central bank, banned initial coin offerings in September.

The IMOs are “essentially a financing activity and a form of disguised ICO,” NIFA said.

NIFA urged investors not to invest blindly and encouraged individuals to report to regulators or the police on such illegal activities.