Cryptocurrency

Chinese crypto ban creates underground economy

Businesses are looking to capitalize in countries such as China and India which banned trading of cryptocurrency. These newly formed businesses sometimes known as “crypto whales” resulted in individuals illegally entering countries to buy bitcoin and other cryptocurrencies. Underground traders are making profits of sometimes 20-40% surcharge on the cryptocurrencies and thus filling a demand in these restricted countries. Most of the activities were conducted through WeChat groups, China’s largest social media platform. Most believe these underground traders will not result in a sustainable business because hedge funds are entering the market and providing similar services at cheaper rates. We have seen numerous crypto hedge funds enter the market in 2018 and expect to see continued growth in the area.

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