NEO Panic and FUD! -Don't worry!
Hello and welcome to my first Steemit post! I am an avid researcher of Cryptocurrency and will offer my thoughts on today's abrupt move in NEO based on a story about Chinese ICO regulations that was posted by Reuters.
NEO lost 15-20% of its value in the last 24 hours on news that the Chinese government may regulate ICO's in the country.
I am going to HODL my NEO for the following reasons:
Although NEO is highly associated with Chinese markets, it is a GLOBAL cryptocurrency with implications far beyond China.
NEO is not yet listed on ANY South Korean exchanges, and therefore has pent-up demand in one of the hottest crypto-markets.
NEO is a revolutionary system that does not waste energy on mining, that allows token creation, that allows digitization of assets and their ownership (identity). The NEO system is unique and arguably more comprehensive than Ethereum.
NEO is a system for smart contracts which Ethereum is trying to catch up with:
a: Ethereum aims to eventually be a non-mined Proof-of-Stake currency like NEO, but it is not there yet.
b: Ethereum aims to be easy to program on languages other than its own proprietary language known as "Solidity", but it is not there yet.
CHINA CANNOT STOP NEO. No country has been able to stop cryptocurrency, and China is no exception. If China does not want NEO to operate in China (which is actually not the case), so be it. NEO is not bound to the Chinese market.
The reuters article (https://www.reuters.com/article/uk-china-finance-digital-idUSKCN1B80Q5) does not imply that the Chinese government is targeting the NEO platform. They are targeting bogus ICO's. Bogus ICO's could be created under the NEO platform, but that does not mean that China is against the NEO platform. In fact, it is in China's national interest to support the NEO platform as an alternative to government ledgers, inefficient escrow systems, and as a means for faster economic development, without relying on a foreign system such as Ethereum.
When China moves to ban some form of internet technology, it typically means that the technology is extremely popular and important.
China is widely known for banning American technologies to promote its own. Look at Google and Baidu. Look at Uber and Didi. See: http://www.latimes.com/business/technology/la-fi-china-american-tech-20160801-snap-story.html
Bottom line: What we are looking at with this proposed Chinese ICO regulation is a boon for NEO. China will end up protecting their market from Ethereum ICO's in order to promote the Chinese Ethereum, which is NEO!
I'm going long at these levels.
disclaimer: this is not financial advice, and all that jazz.
I totally agree. I'll HODL too.
I think the market read it wrong, just because "regulation" is kind of a taboo keyword. But in this case, I think regulation would be a very good thing. There's a high risk of being scammed when you invest in an ICO. A Chinese ICO? Doubly so. Thus, regulation would actually help investors.
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STOPNice. How do you see EOS vs. NEO?