China’s Internet Finance Association Warns on ‘Initial Miner Offerings’ 

A self-regulatory organization in China is warning about a new kind of mining-focused cryptocurrency offering.

The so-called “initial miner offerings” are said to have caught on since regulators in China banned initial coin offerings (ICOs) back in September of last year, according to a new statement from the National Internet Finance Association of China (NIFA). The idea behind an initial miner offering is that mining hardware – used for the energy-intensive process by which new transactions are added to a blockchain – is sold and intended to process a particular cryptocurrency or token.

The new model, according to the group, constitutes a “disguised ICO,” according to a translated version of the statement. It noted the prevalence of promotional events and materials published around such offerings, warning consumers to beware of the risks – particularly in the light of the regulatory action taken last fall…

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