Bitcoin Dives on Dimon’s Fraud Warning

The likes of Charlie Lee, the creator of Litecoin – a cryptocurrency commonly seen as the silver to bitcoin’s gold – further added that China’s squeeze on local markets was a “good thing”.

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If OKCoin and Huobi do really suspend trading on their high-volume exchanges, they will join the BTCC, which announced the suspension of its exchange scheduled at September 30. Since the beginning of September, more than $75 billion has been wiped out, partly due to China, which was-recently rumored to be seeking a Bitcoin ban.

Founded in June 2011, Bitcoin China was the first Bitcoin transaction platform in China and is now the first to be shut down.

Precipitous declines in prices for bitcoin and Ether in the wake of a potential crackdown on exchanges by Chinese authorities have shaved almost $40 billion off the combined market capitalization of the cryptocurrencies over the past two weeks. At time of writing, one Bitcoin is price at about $3,014, down 18.54 percent in the last 24 hours according to CoinMarketCap, and down almost 40 percent from its July all-time-high of $4,952.

The CEO of JPMorgan Chase Jamie Dimon has denounced the bitcoin cryptocurrency as a fraud, bound to fail. The price of a bitcoin dropped another 7 percent Thursday after one of the biggest Chinese exchanges is closing its doors. Also, any Bitcoin operation that doesn’t involve Chinese citizens will remain untouched. After the news about Dimon’s comments emerged, the cryptocurrency market reacted with a harsh price decrease of Bitcoin from $4700 to today’s $3571.

In July, the CoinDash ICO became chaotic when a hacker made off with .4 million in digital currency, and Veritaseum has also lost $8.4 million through an ICO.

Last week, China banned initial coin offerings (ICOs), referring to them as an unauthorized fundraising tool that may involve financial scams.

He said there should be a distinction between digital currencies and digital tokens, such as Bitcoin. Beijing started early in 2017 to tighten the grip on bitcoin selling platforms by limiting payments.

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Yicai, a Chinese news outlet, has reported China plans to shut down the country’s cryptocurrency exchanges by the end of the month, according to Reuters. Exchanges shall deal with their claims and liabilities properly, and insure that investors’ funds and virtual currencies are safe.

John McAfee challenges Jamie Dimon's bitcoin skepticism