Decentralized banking platform LakeBanker will delay the first phase of its native token sale. Managers cited the industry’s current volatile regulatory and speculative environment.
The company said in a statement posted online:
Recent events have created great uncertainty over the future of cryptocurrencies, token sales and other financial innovations. The market has become extremely volatile. In light of this, and in line with our emphasis on risk-management, we have decided to delay Phase 1 of the LakeBanker token sale.
“Phase 1 was originally scheduled to take place between September 15, 2017, 3pm UTC and September 20, 2017, 3pm UTC. It will now take place two weeks later, between September 29th, 2017, 3pm UTC and October 4th, 2017, 3pm UTC.”
LakeBanker, like a banking Uber, is building a distributed global network of independent operators who can perform various banking functions. Its developers say the exchange platform will make it all possible for far lower or no cost to the end user.
Volatile Time for Token Offerings, Digital Currencies
Most of that great uncertainty has come from China over the past month, with the People’s Bank first banning ICOs outright and demanding operators return funds.
Regulators have also been conducting meetings with China-based exchanges and are rumored to be creating new operating conditions. The exact details remain uncertain.
Bitcoin, Ethereum, Ripple XRP, Litecoin, DASH and almost all other digital assets have plummeted in the past week. Some, like Monero and Ethereum Classic, lost over 20 percent in the past 24 hours alone.
It’s impossible to pin all the blame on China though. Exuberance throughout 2017 for all things crypto has created its own unstable atmosphere, and many warned of a correction. It’s possible the industry (at least temporarily) is suffering a hangover from its own sugar-high.
Chinese Excluded From Sale
LakeBanker said it may need to reassess the price of its platform’s native BAC token should the ETH market shift even further. This is a common condition for token offerings — and would not affect those who’ve already bought them in pre-sales.
The company added that the current situation in China would have only a minimal impact.
Despite having an office location in Shanghai, neither LakeBanker nor its parent company LakeBTC are actually incorporated in China. The LakeBTC exchange stopped trading CNY over a year ago, and does not have a Chinese language version of its platform.
Chinese citizens were also excluded from the token sale and it wasn’t marketed there — something that now seems like a prudent idea.
What’s the future for ICOs and token sales worldwide? Let’s hear your thoughts.
Images via LakeBaker, Pixabay
Bitsonline senior editors Scott Fargo and Jon Southurst are LakeBanker advisors.