Red Pulse announce via their Slack on Monday that due to a possible ban on ICO’s from the Chinese government, Chinese citizens would not be able to participate in their ICO on September 10th.
Blockchain and Crypto Advisor Sombat Southivorarat posted the following message.
Due to stricter regulations in China regarding ICOs, we’ve had to make the difficult decision to disallow Chinese citizens from participating in our ICO. We know people will be angry and upset, but we need to protect the interests of Red Pulse, and the long-term success of the platform. We believe this is also in the best interests of the community in the long term, and we hope that our supporters will understand this. That being said, once RPX is listed on Binance and other exchanges, it is accessible to everyone.
CEO Jonathan Ha followed up on Reddit in response to a question from a Redditor with the following –
Thanks for your thoughts. I will answer your questions:
“How can you ask us to have faith in your ICO if it’s not up to Chinese ICO standards?”
We did not make this decision because our RPX sale is not up to Chinese standards. On the contrary, we made this difficult decision because of recent announcements that China’s regulators would be issuing ICO regulations soon, and may ban them entirely until the rules are in place.
Faced with the decision of waiting an undetermined amount of time until there is more clarity or going forward with our RPX sale that we’ve been planning, we have decided to stick with our original schedule, while at the same time abiding by the potential ban in the near term. We won’t be considered to be breaking this potential ban, as long as we are not fundraising directly from Chinese investors.
We had a very difficult time deciding to disallow Chinese investors from our RPX sale, especially since this is the very market and community we are looking to build. The current regulatory language in China came as a surprise to us, and is out of our control. Please believe me when I say we truly were looking forward to having Chinese individuals take part in our RPX sale. At the same time, we are concerned not just about our company, but about the long-term viability of RPX and the community. Exposing the project to this regulatory risk at the very beginning would not be prudent, and potentially jeopardizes our long-term success. We’re hoping our community, inclusive of Chinese individuals, understands this and ultimately supports us in this decision. In any case, this is only regarding our RPX sale, and has no bearing on acquiring the RPX once it has been listed. We’re here for the long-term, not for the short-term.
Regarding your point on “going silent”, I don’t agree. if you look at most of the reddit threads, especially the ones that required a direct response, Stanley, I, or someone else on my team has been quite diligent in responding to people’s questions. We also have active communities on Wechat and Slack, where we have team members answering questions nearly around the clock.
I know people are frustrated, as are we, but we’re doing our best to address people’s concerns, while protecting the Red Pulse project and community for the long-term. Hope you all understand.