The world of crypto took a huge turn for the worse last night when China banned ICOs (initial coin offerings).
This is further proof that ICOs are not good for the crypto community as a whole since most of the companies are raising money before writing one single line of code. After the IRS and the SEC started cracking down on American ICOs, China has followed suit.
As of this writing, altcoin NEO has suffered by going from $35 just two days ago to roughly $20 today. ETH has gone from $392 just 48 hours ago to roughly $300 as of this writing. This is just a small price correction now that ICOs are going to be more regulated worldwide to help new investors avoid losing money in poor investment choices.
The important factor here is that the crypto community is now strengthened for a more positive future.
Proper crypto companies and entrepreneurs (such as Siacoin and the like), can continue to build useful platforms on the blockchain and implement smart contract technology without hosting an ICO event first.
Gone are the days of posting a landing page and writing up a white paper in the hopes that you can raise $200 million. It looks like from now on, companies will have to prove that they have a solid technology, gain some traction, earn revenue, and then bring value to their altcoin the traditional way. The future of crypto currency looks promising because the less scams we allow, the more value we will gain.
So remember, don't panic sell, just buy, hodl, and trade if you wish.
Always trust the crypto community for the long term. Let's see how things look in the year 2021!