China Banning ICO’s, is all over the news right now, there is mass selling in the crypto currency world ,Bitcoin has been tanking, NEO is down to $19.00 as I write this virtually every crypto currency is in the red and if not more then 50% from where it was only a few days earlier. The market cap of all crypto currencies hit a all time high over 178 bln recently and now down to 134 bln.
A few reasons for this major correction could be the fact crypto currencies have been rising so much so fast, a pull back was due and is in fact very healthy for the long term trend of the currencies. Of course the other reason is the governments like china “Banning ico’s” the U.S also has laws in place now, which caused a mass panic in the crypto space.
According to local financial magazine Caixin, Chinese regulators — People’s Bank of China and China Securities Regulatory Commission — are currently deciding on how to handle ICOs. Caixin reports that a permanent suspension is possible.
Until any regulation is actually put in place, however, we have to assume that the ban on ICOs is temporary and will be lifted within reasonable time.
The ban is not permanent they are simply banning them while they figure out how to handle the ICO’s to make them regulated. In the long run this is actually good for the ICO space as it will let more funds come into the crypto currency world. If hedge funds can not trust that a ICO is legit or has been threw some kind of screening process to prove themselves, they will be hesitant to take part in a ICO.
NEO oh my is it done? No not at all, this could also be very positive for NEO for the same reason, if ICO’s have to be more legit then the ICO’s will probably bring in more money , and this will weed out the scams we dont want around anyways. Neo is also being promoted by the chinese government why would they all of a sudden want to hurt NEO? If the government bans ICO’s completely it will make some very rich people in china very angry, I do not believe they will do that, also china does not want to be left behind in this revolutionary technology.
I wouldn’t be surprised if china’s elite are loading up on currencies right now as everyone panic sells them because the news that china banned ico’s. Heck it was probably all part of their big plan. Start selling off some crypto currencies then release news china will ban all ico’s. Then the richest people in china buy up all the cheap crypto currencies as we chase the prices back up.
The rise and fall of the currencies is all in part of the free market place working itself out, we are still very early in the crypto currency world. Im sure this will not be the last speed bump we encounter, just prepare yourself to buy in on these massive dips, and ride the wave back up for your gains.
I had recently sold off most of my positions in crypto currencies as i saw the charts turning to the bearish side. To all my readers please do not wait too long before buying back into bitcoin or other currencies. do your research on coins before you purchase them, be sure to read the white paper.
I will be waiting for the right time and buying back into many crypto currencies including
BITCOIN,LITECOIN ,ETHEREUM ,NEO,OMG,PAY with small stakes in EOS, BCH