China today deemed it illegal to raise funds by launching token-based digital currencies. ICOs, as they’re known, are internet shorthand for an initial coin offering, whereby a business offers shares of its company to investors through the release of tokens, or coins. The practice has exploded in popularity this year. In 2017 alone, companies have raised more than $1.6 billion from initial coin offerings — two of these coins grew to more than $1 billion in market cap during that same time frame. According to Goldman Sachs, token sales surpassed even that of traditional venture capital funding in the first…

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