Negative actions of the Chinese govt is crashing the crypto markets
First, PRC banned ICOs with retrospective effect. And now it is clamping down on the crypto exchanges in China. This contrasts to earlier reports that the Chinese govt will support the development and growth of block chain and crypto industry. NEO(Antshares) benefited due to that impression.
It looks like the excuse of saving investors from ICO fraud has some ulterior motive. This forceful painting of all ICOs with the same brush is clearly a deliberate act to either crash or depress the crypto markets. Contrast this action to the Malaysian govt. The Malaysian authorities have given an advisory to warn investors on ICOs. They are not taking any extreme step like total banning just because of the presence of few bad apples.
One shouldn't stop people from driving just because there are accidents. Of course, they should be warned so that they take cognizance of the risks. This is the difference between censorship versus certification.
People should also note that the govts might see cryptos as a threat because it takes out their centralized control. As the crypto markets mature, investors should be resilient to these sort of manipulation by govts and their coterie banks. The mainstreaming of crypto cannot be stopped!
More and more I tend to think , that all those "bans" are nothing more than just a tool to market manipulation. What holds them away to remove those bans after some time (2-3 month, a year or two) after they made a HUGE HUGE buys on the drop-down dips ?
Almost a perfect business plan:
sell off most of your coins at peak slowly (sell because you know a DIP is comin'. It sure will come, because YOU will create it), then anounce as dreadfull BAN as you can - share the FUD- get as huge DIP as you can - make a massive buys on that DIP.
And remmember, do it all on a global scale. Not local. GLOBAL. Because you can, yoy are so huge.
You are CHINA !
Why this is not a perfect weapon against the rest of the world? Against the western world (USA & EU) first of all ?
Answer me.
Economic globalization without socio-political homogenization has been a historic blunder. China does not have any democracy or civil rights and that is a big factor for it having become a manufacturing giant - because it can bulldoze villages overnight and take land for factories and also it can allow manufacturers to provide toilet bags to its workers to save time of toilet breaks. This sort of high-handedness is impossible in a real democracy.
Unfortunately, US and EU does not appear to be real democracies either. They look more like pseudo-democracies and their govts appear to be controlled by what is known as "deep-state".
Open distributed ledger based technologies like block-chain are a threat to these commie dictators and also the deep state.
I urge that the people, especially investors and traders, take note of the underlying technological philosophy of the cryptos. Only then will the markets be resilient to these sort of govt manipulation.
I am sure that the govts will see these technologies as a threat at some level because it takes them out of the picture and makes them and their banking coteries irrelevant.