Just on the train between Zug and Zurich thinking about China and the ICO clamp down. China official spoke in an interview about the news that has broken on the Peoples Bank of China announcing that all ico’s are no longer permitted in China. This caused widespread concern and a drop in cryptocurrency prices across the big players like Bitcoin and Ethereum. Neo, dubbed the Chinese Ethereum also dropped but seems to be holding up at ~0.0053 BTC.
In the last few hours NEO has risen in value as it becoming widely acknowledged that this regulation by the Chinese authorities is only temporary. Some kind of regulatory structure is being devised to try to assert control over the ico market. What will that look like?
Licensing for ICO’s
A Licensing model is the mooted framework that has been discussed by Hu Bing, a researcher at the Institute of Finance and Banking. This should reassure some investors but not without concern for a limited level of development in a field where innovation and flexibility are key drivers.
The State of New York has imposed similar rules and suffered an exodus of big crypto players such as ShapeShift, who have relocated. ICO’s in Hong Kong such as the much anticipated Red Pulse ICO taking place using NEO (the first ICO for the NEO token).
Sit it out… the “MegaTrend” is set to resume
There is little doubt in investor sentiment; the megatrend will resume. Many are seeing these dips as prime time to buy into markets because the profits are pretty much assured. Of course, in Crypto one never really knows what is around the corner so there is no such thing as a “risk free put”.
Conclusion
Yup, oddly despite incredible gains, it does feel like a fabulous time to get into Crypto.!