Sales day is here! Or doomsday?
What happened?
As you all know, success of cryptocurrencies are largely related to China's market. If you check out all the exchanges, currency in the form of RMB (Ren min bi) will occupy the top volume of exchange for particular coins. News such as this : http://www.investopedia.com/news/china-japan-spike-bitcoin-cryptoccurency-ethereum-prices/
OR
this : http://www.businessinsider.com/cryptocurrency-china-japan-bitcoin-ethereum-2017-7/?IR=T
is nothing peculiar in crypto sphere. But rumours are true now, China are going to ban all ICOs at once!
Why it need regulation?
The popularity of coin offerings has surged in China this year, with 65 ICOs and 2.62 billion yuan, or $394.6 million, raised from 105,000 individuals in the country, the state-run Xinhua reported in July, citing data from a government organization that monitors online financial activity. Scams, useless tokens are inevitable rampant in such ICOs
On 2nd of September, according to Caixin, 7 bank administration: People's Bank of China, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission issued a joint statement (99号文） saying that ICO is listed as illegal fund raising activity, Illegal issuance of securities, illegal sale of tokens, as well as involved in financial fraud, pyramid schemes and other criminal activities, which seriously disrupted the economic and financial order.
99号文 consist of three main points : Authorities are going to fully investigate every person that is involved in the organization, halt on all ICOs project, and case-by-case basis crackdown on all ICOs conducted. Government even requested each organization to hand in report on 4th of September before off work. Authority also demanded for those ongoing ICOs to refund their investor.
For me, I personally think this is a good news for crypto sphere. From this on, we will see more clearly which coins are the real, functional and true to their purpose. This in the long term are always beneficial to all of us crypto trader. As we don't have to trial and error, just to found out that it was all a hoax with our own money. Now this is all done by government.
And do keep in mind too, they're doing a crackdown. If they want to ban all ICOs, why they would spend the effort and time for crackdown and even case by case? China do know cryptocurrency is a big thing for their economy in future. They wouldn't throw it all out by purely banning everything related to crypto. Moreover, People Bank of China(PBOC) itself who contributed in the issuance of 99号文，they themselves do involve in cryptocurrency too.
Look at this article (their achievement in crypto field):
https://www.technologyreview.com/s/608088/chinas-central-bank-has-begun-cautiously-testing-a-digital-currency/
and this :
https://www.coindesk.com/chinas-central-bank-vows-push-blockchain-five-year-plan/
This is an autocratic move by government in the name of doing good to the people, but actually to minimize the competition in the crypto sphere. This is my theory of course. But take a look at NEO now, which is claimed as Ethereum of China (a 3rd party coin). Their first ever ICOs, Red Pulse is being interfered by government from the start. They eventually ended up not allowing Chinese people to participate in the fund raising. This really raise eyebrows of many.
Lastly, this is also great opportunity for us to get in with really low price. Don't be affected by FUD, as always DYOR (Do your own research) and invest! I'm really excited to see which coin will really survive this bearish market, this will show its true value. And less of shitty coins. Remember the issue with ban on withdrawal? Crypto rebound anyway. So lay back, and get shopping now!