A lot of people are listening to the news that China may start regulating ICOs in their countries. This has led to coins with strong fundamentals like NEO and Lisk drop in price recently. However, wherever you find people panic selling you also find opportunities to make money.
But wait, won’t the regulations from China spell doom and gloom for the cryptocurrency market forever? No, no they won’t. In fact the rumor regulations don’t actually sound that bad. According to this coindesk article the regulations that they are going to be discussing are;
• Limiting the size of ICOs
• Strengthen information disclosures
• Supervise Tokens and publish investment risk alerts
These are things that may not be that bad for the cryptocurrency market. We all know that there are a lot of Junky ICOs coming along. I don’t think we want that to represent the market place. In fact if we want this market to become as widely accepted as other markets such as the stock market or bond market we need to have less shit coins and more coins with actual companies, products, teams, etc backing them.
The bottom line is this, we need some regulations and information disclosure responsibilities in order to get the mainstream public on board. It will also help investors by letting us know more information about the product and making it harder for someone to just scam investors out of money. It is something that is needed and will benefit the market in the long run.
In the meantime, people are panicking. They panic about any news that can potentially be interpreted as negative. As a result the price of NEO is falling fast. This is in despite of the coin having it’s first ICO created on it, despite having at least 3 other ICOs launching soon on their network, despite the recent rebranding, despite the networking with large companies that the coin is currently doing.
Get the picture? The fundamentals are great. The “scary bad rumor news” will be good in the long term. And yet people are panicking. Sounds like it is time to be buying and not selling doesn’t it?
As people panic sell the price of NEO is falling. Are we at a bottom? I don’t know, and I doubt anybody else does as well. But what I do know is that it is looking like a good time to buy.