After a successful pre-sale and public sale of its digital tokens, HelloGold Foundation (HGF) will now begin reselling a portion of the tokens previously purchased by Chinese investors following China’s move to ban initial coin offerings (ICOs).
In the wake of the ban on ICOs in China, Singapore-based HGF, which targeted to raise US$9.6 million from its token sale, has decided to refund the tokens it sold to its Chinese investors through its partner ICOage. The unexpected move by the Chinese regulator also required all local cryptocurrency platforms to refund all tokens sold during ICOs that have been completed or are in progress.
“It was not required of us to return the tokens [to ICOage] but it was the right thing to do,” said Robin Lee, CEO of HelloGold, a Shariah compliant gold digital platform. “We have decided to sell a portion of those tokens through a resale process at the end of the public sale, which is expected to end on the 19th September,” Lee told IFN Fintech in an interview on the 15th September. The resale will last for two weeks.
In August, a pre-sale of HelloGold Tokens was created to enable the invitation of strategic investors to support the tokens and remove large investors from the public sale, thereby freeing up the public sale to be as widely supported as possible. HGF partnered with China-based ICOage to sell two allocations in the pre-sale to the Chinese market. The foundation hit its pre-sale target selling at least 40 million tokens (valued at approximately US$1 million).
China’s regulatory measure sent shockwaves throughout global markets, triggering a dramatic plunge in Ethereum and bitcoin prices. Lee, however, remains unfazed and in fact is quite welcoming of China’s unprecedented approach.
“I don’t think it is going to have a real impact on us – we are a Singapore-based organization so the ban doesn’t really affect us,” Lee said. “But my own personal view is that over the next few months, the Chinese authorities will come up with new regulations to ensure that good actors in this space are clear to operate and those who aren’t good actors will find it more difficult to operate, and this is a good thing. I am hopeful that coming out of this, there will be regulations for the right kind of ICOs to be made available to the public in China.”